Journal article

Impacts of Financial Literacy and Confidence on the Severity of Financial Hardship in Australia

Evgenia Bourova, Malcolm Anderson, Ian Ramsay, Paul Ali

Australasian Accounting, Business and Finance Journal | University of Wollongong | Published : 2018

Abstract

Consumers in Australia and other developed countries are increasingly required to interact with providers of complex financial products and services, and to estimate, mitigate or absorb the risks that flow from their financial decisions. A range of debt-related problems in Australia have been attributed to low levels of financial literacy in the population. However, there has been limited research exploring the relationship between low financial literacy and the problem of financial hardship, where a consumer takes on payment obligations under a contract, but then becomes unable to meet them when they fall due. Drawing on a survey of Australians who recently experienced debt problems, this a..

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Grants

Awarded by Australian Research Council


Funding Acknowledgements

This research is supported under the Australian Research Council's Discovery Projects funding scheme (project number DP140101031). The authors thank the two anonymous reviewers for their comments.