Young and old 'fall behind' in money literacy

Young people and senior citizens are falling behind in the financial literacy stakes, a new poll by ANZ has claimed.

A yearly survey carried out by the group asked Aussies around the country a number of questions ranging from whether they use online services to manage savings accounts to whether they shop around to find products such as cheap credit cards and the best term deposits.

It found that that younger generations and older people, particularly older women, tended to perform well in terms of what are considered to be prudent money management practices.

“The effects of low financial literacy come at a great cost to the economy and to the livelihood of Australian families and individuals,” said Mike Smith, chief exec of ANZ.

Illustrating his point, he highlighted stats showing that nearly $1 billion was lost in 2007 as unwitting consumers were caught up in credit card and bank account scams.

In an effort to engage younger people with their money, the bank has recently launched the SmartyPig online bank account, offering both high interest savings and the opportunity to involve friends and family in efforts to put cash aside for set goals.ADNFCR-1761-ID-18821959-ADNFCR