CANBERRANS top the nation for their “financial sophistication”, according to a national study, which measured financial consciousness across the country. 

But the study, The Financial Consciousness Index (FCI), which was released by comparethemarket.com.au and Deloitte Access Economics today (August 27), shows that the ACT scored worse this year than it did last year.

This year, the average ACT resident’s score in the study’s financial consciousness test was the highest in the country – scoring 51 out of 100. However, the ACT’s score fell two points from last year.

When comparing ACT residents’ score against the overall Australian average, ACT achieved three points higher. Of concern though, according to the study, is that more than 101,000 ACT residents (32 per cent) failed to meet the basic requirements for financial consciousness, with an FCI score of under 45.

But, interestingly, the report revealed differences in scores across ACT demographics.

When comparing age groups, over 55s had the lowest FCI scores. These saw a marked dip of three points in their FCI score – to an average of 48 – compared with 45-54 year olds who scored 55, and 18-44 year olds who scored an average of 51.

ACT residents with an undergraduate or post-graduate education had a better FCI score – of 55 – than those who completed high school only, who scored 43.

Unlike other states where the higher the income, the higher the FCI score, there was a fluctuation among scores and incomes for ACT residents. For instance, residents earning less than $10,000 were found to have a very similar FCI score as someone earning between $160,000-190,000 – with FCI scores of 52 and 53, respectively. The lowest score (46) was found among those earning $10,000-40,000 and $130,000-160,000.

In addition, ACT couples living together (with or without children) had a better FCI score than singles (with or without kids) – due, in part, to the higher combined incomes of couples. ACT couples scored 52, compared with 50 for single parents and 45 for singles. These scores are higher than the national average FCI scores of 50 for couples and 45 for single parents.

The study found that home ownership makes an especially big difference. ACT homeowners were found to have a higher score than those who rent: 53 and 48 respectively. This homeowner score was the highest in the country.

Nationally, the scores reveal the financial reality for a significant proportion of people. The study found that nearly 2 million more Australians in 2019 feel less financially conscious and less financially well – the latter indicating the degree to which people feel they are able to meet expenses, have some money left over to save, and feel financially secure, both now and in the future. This implies that there are now some 7.5 million Australians who, on average, regularly struggle to pay their bills, are not saving money regularly, do not feel like they have job security and would feel financial pressure if they were to fall out of work.

Comparethemarket.com.au general manager of banking Rod Attrill says: “The 2019 Financial Consciousness Index has shown signs of change for Australians and provides interesting insight on ACT residents.

“Last year, ACT and NSW scored quite similarly for financial consciousness, but this year, the gap is widening – with ACT being the outright leader and the only state to score above 50.”