Do you know how you fare against the average Australian when it comes to budgeting, money products and understanding of financial concepts?
A leading financial comparison service has designed a quiz to help us find out where we sit on the financial literacy and health scale – and have offered a step-by-step guide to improving our understanding and abilities when it comes to money.
Comparethemarket.com.au’s Financial Consciousness Quiz is a shortened 10-question test based on its recently released Financial Consciousness Index (FCI), which tests around 3000 Aussies on various aspects that make them financially ‘conscious’. More than 65,000 Aussies have taken the Financial Consciousness Quiz since it launched three years ago.
The Quiz asks 10 questions about:
- An individual’s ability to meet their money commitments
- The extent to which they have control over their finances
- Their approach to finances
- Their knowledge about interest rates vs inflation on savings
- Their knowledge of share investing
- Where individuals go for financial advice
- Personal budgets
- Personal super funds
- How often they monitor RBA rate announcements
This year’s FCI found that the national average score is 51 out of 100. This places the average Australian in the ‘Conscious’ category, which means they are financially aware, have a solid understanding of financial concepts, are somewhat actively involved in financial decision making, and are willing to make improvements to their finances.
In contrast, individuals who fail – and received a score of less than 45 – have a basic understanding of financial concepts and products, but may find it challenging to apply financial knowledge to their day-to-day financial decisions and planning. For instance, individuals who don’t understand interest rates and the concept of refinancing home loans when a rate cut occurs could pay thousands of dollars more over the lifetime of their mortgage, for merely remaining on a high-interest rate and not understanding market changes.
David Ruddiman, comparethemarket.com.au General Manager of Digital Banking, says: “There has never been a more relevant time for Aussies to measure their financial understanding and get on top of their situation.
More than ever, being financially well and improving one’s finances could be the difference between getting ahead or falling behind their fellow Aussies during the recession. Regardless of how they score, Aussies should continue to educate themselves on money matters and improve their financial situation as it’s a fundamental basic that impacts all aspects of life.”
David Ruddiman
Take the 10-question Financial Consciousness Quiz to find out how you score against the country: comparethemarket.com.au/financial-consciousness/the-quiz/
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