subscribe to our newsletter

Most Aussies believe they’re good with money

A new survey has revealed that a vast majority of Australians believe they are well equipped to make adequate financial decisions.

Major brokerage Mortgage Choice launched this week its Australian Financial Services White Paper, which revealed that 77.2 per cent of Australians consider themselves to be “money smart”.

“Increasingly, when we break the data down into age groups, it is clear that those over the age of 60 and under the age of 30 boast the highest proportion of ‘financial-savvy’ individuals,” Mortgage Choice chief executive officer John Flavell said.

Over 85 per cent of surveyed respondents over the age of 60, and fewer than 80 per cent of those 30 and under, labelled themselves “financially savvy”.

Australians under the age of 30 who believe they’re “financially savvy” also consider their financial know-how to be “far superior” to their peers.


Comparatively, of those aged 30 and over, 55 per cent consider their financial knowledge superior to that of their peers, while just 35 per cent over 60 hold the same view.

“[It] would appear that most Australians would define ‘financial savviness’ in the same way,” Mr Flavell said. “According to the surveyed respondents, to be ‘money smart’, you need to be ‘street smart’ and have the same ability to make good decisions with the money that you have.”

Of those who believe they are “money smart”, over 60 per cent review their bank accounts at least once a week.

Moreover, 90 per cent of “money smart” respondents noted the importance of a proactive financial approach, applied through the use of a draft budget.

A further 68 per cent of “financially savvy” Australians save more than 10 per cent of their income for a “rainy day” fund, while an additional 68 per cent of Australians said that they actively research their financial options online before making a decision.


The survey also revealed that 17 per cent of “money smart” respondents pay their credit card debt in full on a monthly basis, and ensure that they don’t accumulate more debt than they can manage.

Conversely, one in three surveyed respondents struggle to make adequate financial decisions because they feel overwhelmed by the variety of choices available to them.

“We regularly put the concept of ‘choice’ on a pedestal. It is agreed that an industry with an abundance of choice is strong,” Mr Flavell said.

The survey data also revealed that 73 per cent of respondents believe they benefit from financial advice, while 93 per cent cited the importance of increasing their industry knowledge.

The Mortgage Choice CEO concluded: “Financially savvy Australians are twice as likely to live a comfortable retirement and 1.5 times more likely to have an emergency fund saved for those ‘rainy day’ expenses.

“In a nutshell, financially savvy Australians are more likely to cope with life’s various hurdles as and when they retire. And in today’s market, that is very important.” 

[Related: Investors confident in property market: Mortgage Choice]

Most Aussies believe they’re good with money

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Charbel Kadib

Charbel Kadib is the news editor on the mortgages titles at Momentum Media.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

You can email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

The IMF has urged Australia to consider reforms around housing supply and lending standards, citing apprehension around the upsurge in prope...

Treasurer Josh Frydenberg has backed the net-zero emissions by 2050 target, warning failure to comply will hurt banks’ access to capital a...

The regulator is set to release information setting out how it would use macroprudential policy tools, after expressing concerns around the ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.