Money Savvy Challenge puts financial literacy in the spotlight
- Revealed: Australians struggle most with life insurance and savings
- Over 4,000 respondents take part in financial literacy quiz with average score of 67%
- finder.com.au relaunches second Money Savvy Challenge and pledges up to $10,000 for charity
AUGUST 5, 2015, SYDNEY, AUSTRALIA – In terms of financial knowledge, Australians are most in the dark about savings and life insurance, according to a quiz of more than 4,000 people by one of Australia’s largest comparison websites, finder.com.au.
The inaugural finder.com.au Money Savvy Challenge attracted 4,024 respondents nationally last year with, on average, respondents scoring 67 percent in the quiz. It covered eight financial product areas: home loans, savings accounts, credit cards, transaction accounts, personal loans, life insurance, travel insurance and travel cards.
Just 47 Australians – or 1.16 percent of respondents – scored a perfect 100 percent, while not one question was answered correctly by everyone.
Now in its second year, finder.com.au’s Money Expert Michelle Hutchison is challenging Australians to improve on their knowledge in the financial space with the relaunch of the quiz.
“It’s very concerning to see people get these simple questions wrong, with almost 7 percent of respondents failing the quiz last year.
“Financial literacy is an important issue in Australia as too many Australians don’t know enough about money and banking. This can lead to wasting money on banking products that don’t suit you, staying with the same products for too long, missing out on better deals and relying on bankers and institutions to give you advice that may not necessarily be in your best interest.
“That’s why we’ve relaunched the Challenge, to once again shine a light on financial literacy in Australia.
finder.com.au Money Savvy Challenge aims to encourage everyday Australians to brush up on financial literacy – it’s back, bigger and better, with 15 multiple choice questions, tips to help you out if you need them, and practical guides for the questions you get wrong.
“This time you can take the challenge, learn something and help out a charity in the process. finder.com.au will pledge up to $10,000 towards 35 charities, with respondents earning up to $1 per entry towards a charity of their choice. It’s a win-win.”
According to last year’s results, the biggest room for improvement were savings and life insurance. Almost 70 percent of Australians didn’t know if life insurance premiums change if you’re a smoker. Interestingly, Tasmanians were most likely to get this question wrong, despite having the second highest percentage of smokers in the country, according to the Department of Health. Almost 60 percent were unaware if the Australian Government guarantees savings in savings accounts.
It was a different story for personal loans and home loans, with respondents faring better in these areas than other money topics in the quiz – 94 percent of respondents knew if you can use a personal loan to finance the purchase of both new and used cars, while 92 percent of respondents knew if it’s possible to avoid paying Lenders’ Mortgage Insurance (LMI).
Credit cards and travel cards caused the most confusion among respondents. Nationally, 29 percent of people didn’t know if credit cards offer rewards points and no annual fee while 47 percent, on average, didn’t know whether travel cards can go into negative balance from inactivity fees.
“I encourage every Australian to take part in the Money Savvy Challenge – by doing so you can learn where your financial strengths and weaknesses lie as well as how to boost your financial literacy and raise money for your favourite charity,” said Mrs Hutchison.
Take the challenge:
More stats from last year’s Money Savvy Challenge
The most savvy state: Western Australia
- The best performing state was WA with an average score of 67.4% (compared to national average of 67%)
The least savvy state: Tasmania
- The worst performing state was TAS with an average score of 66.2%
Most likely to get a perfect score: New South Wales
- NSW saw 24 people (or 1.9% of NSW respondents) nail the challenge by scoring 100%, followed by VIC with 1.1% of respondents (9) scoring 100%
Most likely to fail the quiz: New South Wales
- NSW also saw the most people who failed the quiz, with the highest proportion of people (7.4%, or 95 people) scoring below 50%, followed by 7% of Queenslanders (53 people) failing the quiz
The financial topics Australians struggle with most:
- Life insurance: When it came to knowing if you would have to pay more for life insurance if you’re a smoker, 66% of respondents answered this question incorrectly
- Savings: Nationally, almost 60% of Australians were unaware if the Government guarantees savings accounts
The financial topics Australians are on top of most:
- Personal loans: Just 6% of respondents didn’t know if you can use a personal loan to finance the purchase of both new and used cars
- Home loans: Just 8% of respondents didn’t know if it’s possible to avoid paying Lenders’ Mortgage Insurance (LMI)
The financial topics that cause the most confusion among Australians:
- Credit cards: Knowing whether you can earn rewards points on a credit card with no annual fee was the most confusing between the states, as SA scored 79%, on average, while TAS scored 62%; the national average was 71%
- Travel cards: NSW respondents scored the highest of 52%, on average, for knowing whether travel cards can go into negative balance from inactivity fees; ACT on the flip-side scored just 40%. The national average was 47%
The finder.com.au Money Savvy Challenge 2015 is supporting the following 35 charities:
- Amnesty International Australia
- Australian Red Cross Society
- Autism Spectrum Australia
- Barnados Australia
- Beyond Blue
- Butterfly Foundation
- Camp Quality
- Cancer Council
- CARE Australia
- Cerebral Palsy Alliance
- Diabetes Australia
- Greenpeace Australia Pacific
- Guide Dogs
- Leukaemia Foundation of Australia
- Lifeline Australia
- McGrath Foundation
- Mission Australia
- National Breast Cancer Foundation
- National Heart Foundation of Australia
- Oxfam Australia
- Planet Ark
- Ronald McDonald House
- Royal Flying Doctor Service
- St John Ambulance
- St Vincent de Paul Society
- Starlight Childrens Foundation
- Surf Life Saving Foundation
- The Fred Hollows Foundation
- The Salvation Army
- The Smith Family
- UNICEF Australia
- World Vision Australia
- World Wildlife Fund (WWF)
For further information
The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.
finder.com.au is Australia's most visited comparison website and has helped over 4.8 million Australians find better credit cards, home loans, life insurance, shopping deals and more since 2006. finder.com.au compares 250 credit and debit cards from 31 providers, over 300 home loan products, and information from 13 life insurance providers as well as online shopping promo codes, mobile phone plans, travel insurance and more. One Australian every five minutes is using finder.com.au to find better (Source: Google Analytics).