Yahoo Finance Record number of Aussies confused about their finances: ‘One in three’
Confused by inflation? A new study reveals you’re not alone.
Millions of Australians say they don’t feel able to make financial decisions to help cope with record inflation rates, according to new research by Finder.
Women and young people in particular say they don’t know how to manage the rising cost of living, nor what inflation actually is.
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Generation Zs (aged under 26) reported being the most unprepared to make financial decisions compared to older generations. In fact, 49 per cent of Generation Zs said they were not prepared. That compares to just 18 per cent of Baby Boomers (aged 58+)
Rebecca Pike, money expert at Finder, said that was not surprising since younger people had not experienced inflation in their lifetimes - where everything was rising at full force.
“A significant number of people, especially those who are younger, will have never experienced times like this before,” she said.
Australian women are also feeling ill-equipped to manage their money in order to cope with the sharp increase in the cost of living over the past year. The gender gap in money confidence between men and women was significant, with women (42 per cent) almost twice as likely than men (22 per cent) to say they felt incapable of making financial decisions during times of inflation.
Pike said it was important all Australians took the time to learn about inflation and its impact on finances, as well as learn how to make a budget.
However, with professional financial-advice fees out of reach for many Australians, and financial literacy not being taught in schools, it can be hard for many Australians to know where to go to get information about personal finance and money.
Moneysmart.gov.au provides easy-to-understand information on finance, interest rates and budgeting - including calculators and explainers.
For people who are struggling to make ends meet or with paying bills, the Financial Counsellors of Australia site can provide advice and assistance free of charge.
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