New research from News Corp Australia’s The Growth D_Stillery, in collaboration with research partner Verve Australia, has revealed a mindset divide in financial literacy that is influencing personal financial choices across generations.
The full Personal Finance D_Stilled report is available here.
Regardless of income, life stage or gender, the study found that Australians are feeling the pinch of rising costs on their household budgets. In this climate of financial uncertainty, making informed financial choices is more important than ever to weather the storm.
The Personal Finance D_Stilled report reveals a split in the mindset of Australians in terms of financial literacy, defining how people are navigating economic challenges as those “leaning in” to their finances and those “leaning out”.
People leaning in are taking a proactive approach to their finances, seeking out information and planning for the future. This creates more opportunity for marketers as those that lean into financial choices have more diverse portfolios and are more open to exploring financial providers in the next 12 months. They are also more likely to review or change insurance providers, explore superannuation options and retirement funds.
Those leaning out tend to avoid thinking about their finances, focusing more on dealing with immediate needs as they arise. This group has lower financial confidence and are more likely to say they feel hopeless in the face of rising costs.
There is a key opportunity for brands to guide better choices in a year where Australians are re-evaluating their spending and financial products, brands have a role to play in assisting them to make informed choices.
However simply providing financial information is not enough to bridge the divide. It is about the right information, on the right topics, at the right time.
Director growth intelligence Dan Krigstein said financial literacy is a key indicator in determining how people navigate financial pressures and make choices about their personal finances.
“With this latest edition of the D_Stilled series, we set out to understand and unpack the mind and mood of different Australians when it comes to their personal finances,” Krigstein said. “We sought to understand the big stories in their finances, and the different ways that people are navigating the current pressures.
“While life stage has always been important, mindset is now becoming a critical factor in determining who is leaning in or out regarding financial decision-making and interest in financial products.
“To effectively connect with diverse audiences on the products and issues that matter most in this uncertain climate, brands must consider both their mindsets and narratives.”
Managing cirector national sales Lou Barrett said the company firmly believes in the power of research to unlock opportunities for its clients.
“We are committed to delivering comprehensive insights and data that drive real business outcomes for our clients and their brands,” Barrett said.
“The Personal Finance D_Stilled report will empower the financial sector and brand marketers to better understand the current consumer mindset amid a turbulent time for Aussies’ finances.
“It also highlights the unique opportunity for brands to assist Australians in making informed choices through tailored financial education, support, and meaningful communications.”
