Recently, Teachers Mutual Bank supported Your Financial Wellness (YFW) – a landmark research project to measure financial wellness in Australia.
Conducted by the Centre for Social Impact at the University of NSW, more than 3000 respondents from across Australia answered questions relating to their financial situation, financial aspirations and financial literacy.
The research found that almost one in two Australians experience some kind of financial stress, half sometimes worry about meeting normal monthly expenses, one in five often can’t afford to eat out or go to the movies, and almost a third reported high or overwhelming financial stress.
The research also found that:
- Financial stress decreases with age, with stress declining significantlyfrom 50+.
- Home ownership is a strong indicator for financial wellness.
- A third of respondents express some concern at meeting regular debt repayments.
- Financial wellness scores improve markedly once respondents report 1-2 months’ savings.
While no single variable appears to determine financial wellness, factors such as age, gender, employment, income, level of savings and home ownership can play a key role.
The top financial goals were: boost retirement savings, saving for a holiday, repaying a mortgage, paying off credit cards, buying a car and buying a home.
While owning your own home was found to be the single most important factor in increasing financial wellness, the research showed that financial literacy is also important. Financial literacy is defined as the relationship an individual has with their financial circumstances and what they do about them.
Successive governments have tried to improve financial literacy, however the YFW report shows that basic financial literacy remains an issue for many Australians.
Both YFW and Teachers Mutual Bank see a connection between financial institutions and their customers, believing financial wellness is the responsibility of caring financial institutions who go beyond just offering products to help their customers achieve financial wellness.
The Bank for Teachers
Teachers Mutual Bank is committed to ensuring teachers’ hard-earned money is working harder than ever, helping them develop better financial literacy and take an active role in managing their financial future.
You can download the report here:
www.tmbank.com.au/join/your-financial-wellness
After such an unprecedented year, it’s understandable that we all may need to re-evaluate our relationship with money. By becoming a member, you can enjoy free access to the YFW program, which gives you the tools and resources you need to take control of your financial future.
Find out how you can join the bank for teachers here: