The Your Financial Wellness Index, based on a study of 1,000 consumers conducted by the university, found that 47 per cent of consumers were worried about their finances, while 44 per cent were not confident in managing their day-to-day expenses.
The research, which was commissioned by Teachers Mutual Bank, also found that 26 per cent of consumers surveyed had reported high or overwhelming levels of financial stress, and a further 20 per cent said they did not think they could afford luxuries like eating out or going to the movies.
Teachers Mutual chief executive Steve James said the preliminary results of the research, which will be updated in 2021, were reflective of the fact that “2020 has been a challenging year for many Australians”.
However, consumers’ confidence in their financial situation did appear to be improving over time, with Mr James saying the number of Teachers Mutual customers on mortgage holidays had reduced down from 960 at the height of the pandemic, to just 27 at the end of November.
“Our numbers are lower than other lenders as our membership is made up predominantly by key workers: teachers, university staff, firefighters, nurses and midwives,” he said.
“Fortunately, most of these industries maintained steady employment throughout the COVID-19 crisis.”
Despite a generally positive outlook for ‘essential worker’ professions, Mr James said the bank had helped 150 members with financial hardship issues over the 2020 financial year, and was partnering with financial coaching platform Your Financial Wellness to provide more tailored support around member financial wellbeing in 2021.
Great initiative from TMB!