We have been personal loan brokers and mortgage brokers in Rockingham since 1999. That’s a lot of experience. Over the years, we have noticed a pattern that is almost always associated with success: financial literacy. Whether you want to borrow money for a home, a boat, a car or personal needs, it pays to know about your money.
What ASIC Has to Say about Financial Literacy
In December 2014, the Australian Securities & Investments Commission (ASIC) released the Australian Financial Attitudes and Behaviour Tracker. Known as “the Tracker,” it surveyed Australian consumers and investors to find out their attitudes and behaviour concerning finance.
The Tracker was devised to help support consumers and investors, providing them with knowledge and confidence. It is intended to help build an accurate model of behaviours and attitudes towards finance.
Over a six-month period, the Tracker compiled information on saving, budgeting and planning, both short and long term. They were also able to gain an understanding of how much Australians know about what they term “key investment concepts.”
ASIC intends to use the information to help provide direction for its efforts to educate consumers and investors. The first phase was conducted in August 2014. It tracked financial behaviours and attitudes for the previous six months.
The Results of the Study
Over 90% of Australians track their money. The most common ways of doing this were to check their bank statements (59%), check their credit card statements (47%) or keep their receipts (39%).
Those who were younger than 35 years of age were more likely to keep their numbers in their heads (28%) or use mobile apps to track finances (16%), than those over 55 (12% and 1% respectively).
Only 38% of those surveyed said they had a financial plan in place for the next 3-5 years. Only 22% reported having a long-term plan, considered to be 15-20 years. Of those with long-term plans, 74% also reported a short term plan.
Having a plan and executing it can help you attain lower rates on home loans or commercial loans.
To learn more, call Smartline Rockingham today: (08) 9527 1800.