Shocks and safety nets: financial wellbeing during the COVID-19 crisis

Abstract

We use ANZ's Financial Wellbeing Indicator, which draws on multiple questions in the continuous Roy Morgan Single Source survey. The Indicator brings together three dimensions based on Kempson and colleagues’ (2017) model of financial wellbeing. These include the ability to meet everyday commitments, feeling comfortable about one’s financial situation and resilience to financial shocks. For most people, the COVID crisis led to a decline in financial wellbeing, driven by a sharp fall in the Feeling Comfortable dimension. People with low incomes, particularly those in the workforce, faced more serious declines. For example, low-income workers showed a 21% decline in ability to Meet Commitmen..