One cost maybe greater stress or worries about money. Another cost will be less funds now and reduced wealth in the future. Allianz research has actually put dollars on the difference in wealth of people with low, average or high financial literacy. Their report shows in Australia 17% of people demonstrate high financial literacy, 57% average and 26% low.

The impacts of the economic forces in the environment such as inflation, job market etc will not change with improved financial literacy, however it should help individuals weather the storm more effectively.

Delving deeper the report also shows that only 24% of women feel confident about their finances, compared to 49% of men. There is a shame factor about asking for professional advice, so individuals often continue to feel stressed or rely on family and friends or social media for financial advice.

How can we I improve?

Financial education is a valuable investment for individuals and policy makers.

Educate kids at school with practical day to day financial skills, programs such as Ecstra’s Talking money, IWCF – Money Mentors, or Banqer.

Or for adults – I agree with the recommendations of the Allianz report.

‘Concretely, a successful financial literacy intervention, in particular those catering to women, should include a four-cornerstone approach:

• First, it should tackle confidence and the paralyzing effect of not feeling knowledgeable when it comes to finance.
• Second, it should empower women to discuss any financial struggles openly without any shame factor, enabling them to come up with a plan to reach financial goal.
• Third, it should provide actionable steps towards building a savings fund for a rainy day or building a fund for investment.
• Lastly, it should enable women to understand the risks and return trade-off of the different financial assets available for investment and help them decide what is best for their life plan.

In other words: Confidence. Budgeting. Saving. Investing.’

Allianz Research – Playing with a squared ball” the financial literacy gender gap, Published July 2023 https://www.allianz.com/content/dam/onemarketing/azcom/Allianz_com/economic-research/publications/specials/en/2023/july/2023-07-27-Financial-Literacy.pdf

Money Coaching will address these four areas and give you the tools to learn about and grow your money.

Go to www.moneywellness.com.au for resources of good websites with independent simple financial information.

Take the money quiz to work out which money types can shape your financial behaviours and emotions around money.

Don’t shy away from seeking assistance. Mastering your personal finances is more than just numbers (you don’t have to be good at maths!). Book a complimentary 15 min discovery call to discuss your individual needs and how I can help.