Posted by Naomi Rosenthal on Wednesday, April 3, 2013 Under: General
We surveyed a group of Australian Women to understand what they need to know about financial matters. The results told us that while 66% rated their level of financial literacy as good or excellent, only half maintained a household budget and 64% were somewhat to very fearful of not having enough money in the future. Half of the respondents felt lack of financial stability / insufficient income or their partner / family were holding them back from taking necessary action to manage their money and their financial future.
As the Government makes it more difficult for the financial planning community to provide accessible, cost effective advice through their “Future of Financial Advice Reforms”, whose intent was to do exactly that but in reality creates more red tape to constrain access for everyday Australians to quality advice, I believe it is even more reason to create quality, well researched financial information that is easy to access, easy to understand and easy to apply so that people can have more educated and more beneficial conversations that help them preserve their existing assets and build their wealth.
Financial literacy is the ability to make informed judgments and to take effective decisions regarding the use and management of money. Financial literacy is therefore a combination of a person’s skills, knowledge, attitudes and ultimately their behaviours in relation to money.
There are 5 key behavioural indicators of a person’s financial literacy:
1. Keeping track of finances
2. Planning ahead
3. Choosing financial products
4. Staying informed
5. Financial control
In December 2011, ANZ released their 4th Survey of Adult Financial Literacy in Australia. One group identified in this report as having low financial literacy was Females.
The report identified that designing programmes to not only improve their financial knowledge/numeracy but also positively seek to influence people’s financial attitudes needs to cover:
• Finding ways to engage people
• Helping them overcome the stress some people associate with dealing with money and build confidence in managing money
Two key issues that require ongoing attention are:
2. Understanding risk in investment
Women are at a financial disadvantage compared to men for a broad range of reasons. Some of these include women living longer than men, earning less money, taking time out of the workforce to raise children and not having sufficient super for a comfortable retirement.
While there are a range of programmes already in the marketplace to help people raise their understanding of financial literacy issues, I believe there is a clear gap for discussing issues that relate specifically to Australian women and educating them in ways that they can understand and use in their everyday life.
We are on track to create and deliver short (3 – 5 minute) fun, engaging and interesting videos on all aspects of financial literacy concepts and issues, specifically aimed at women and accessible via a YouTube Channel or Website that build one week to the next. It will offer easy to understand, relevant content that will assist women to build their knowledge, their confidence and their wealth.
In providing this great information, women will be compelled to take action to improve their financial wellbeing.
Our planned launch date is July 2013. If you are interested in learning more about the programme or becoming a subscriber, submit your details here and we’ll keep you posted!
In the meantime, I am proud to announce that I am one of the hosts of EagleMoney a radio show that streams live via the internet every Thursday from 4 to 5pm on Eagle Waves Radio (www.eaglewavesradio.com.au).
EagleMoney talks about all things money related. Whether it is budgeting, superannuation, insurance, investing, property – anything to do with ‘money’, it will be showcased on EagleMoney.
I look forward to your company!
In : General
Tags: "women and money" "financial literacy" survey "financial matters" eaglemoney "eagle waves radio" "financial wellbeing" radio "money behaviours"