Australians get a FAIL grade on their money smarts

Financial Literacy Concept in Flat Design.

 In a recent interview she gave to Spending Hacker, leading financial commentator and personal finance expert Nicole Pedersen-McKinnon highlighted extremely troubling findings by Paul Clitheroe (Chairman of the Financial Literacy Board) and herself regarding the money habits of everyday Aussies writes Michael Ginsburg.

Amongst the findings revealed by Paul and Nicole:

  • A quarter of Aussie households couldn’t raise $3,000 in an emergency;

  • 60-year-old single females have the highest poverty rate in Australia at 36% and women are retiring with half the super balances of men yet have to make this money last longer as they can expect to live 4.4 years longer than males;

  • Australians have among the highest levels of household debt and underinsurance in the world; and

  • The average super balance at retirement is far from adequate and yet less than 20% of Australians are actively building their wealth for retirement.

“The next generation aren’t on track to do any better.” said Nicole.

Nicole said she is also very concerned about the slow roll-out of formal financial literacy programmes amongst school kids which is both complete and unbiased.

“My big concern is that financial institutions are scrambling to fill the void….You can bet these bank-sponsored programs leave out the fact that NO bank offers the best of every product – most don’t even offer the best of two!” further added Nicole.

About Spending Hacker: Spending Hacker is an Australian owned and operated website which aims to empower Aussie consumers by showing them how to Spend Less yet Get More on everyday products and services. They provide impartial advice on the BEST products and services in areas which everyone needs and uses such as bank accounts, credit cards, utilities, health insurance, telecommunications and groceries. More information can be found here.

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