Research highlights the need to support Tasmanians to be more confident with money

Research released today highlights the critical need to support Tasmanians to be more confident with money.

‘Bank of us Insights – Tasmanians and money’ shows:

• 75% of people who have debt are experiencing some level of debt stress

• Renters are half as confident as homeowners about being able to meet their needs in retirement

• Almost 70% of people who don’t own a home worry about how they will afford one

Bank of us CEO Paul Ranson said: “Our bank is committed to helping Tasmanians be more financially secure and to have secure housing.

“We commissioned this work to back those aspirations, but also contribute to the broader understanding of these important issues around housing and financial security for people.”

“We intend to use these findings, working with partners that have experience and expertise, to produce better outcomes for Tasmanians.”

Youth Network of Tasmania CEO Tania Hunt said the findings supported what her organisation was hearing from young Tasmanians- aged 12 to 25 - during statewide consultations.

“Our own research shows that financial literacy is among the top five factors young people need to successfully transition to adulthood and independence,” she said.

“The Bank of us findings highlight the acute need to have policy and initiatives aimed at equipping younger people to be confident with money.”

Financial Advice Association Australia (FAAA) Tasmanian chapter chair Dr Roger Colbeck said a lack of financial literacy was a national crisis.

“None of this is to discount that times are pretty challenging for people,” Dr Colbeck said.

“However, what planners see is a clear link between when people start to really think about their financial future and how they are placed when it comes to life after work.

“Setting up good habits early, even if they are small, incremental measures, can make a massive difference across someone’s lifetime.”

FAAA was committed to creating that awareness in younger people, having produced a teaching resource aimed at 15-16 year olds.

University of Tasmania finance expert Associate Professor Dan Daugaard said the findings were clear and compelling, and pointed to the need to provide financial literacy training at a community level.

“As is the case with so many of the challenges in our community, education is at the heart of helping people be more confident with money,” Associate Professor Daugaard said.

“We are keen to explore models which might draw on the talents of our students in providing outreach and workshops in the community.”