People in Australia’s regions feel more confident about managing their money, with lower appetite for risky behaviour and fewer perceived barriers to managing their finances than those in metropolitan areas, research from NGM Group and the University of Newcastle’s Institute for Regional Futures shows.
HIGHLIGHTS
- More than 70 per cent of regional Australians feel confident about their money skills.
- Across the states, people in regional Western Australia and New South Wales reported the highest levels of financial confidence.
- More than one-in-five regional Australians feels “too busy” to manage their finances.
- Almost two-in-three people in the regions reported feeling empowered to improve their financial situation.
The research looked at the attitudes, behaviours, and savings balances of Australians across metropolitan and regional areas to shed light on how people are managing their finances and futures.
Notably, regional communities in parts of Australia’s East – in NSW and Queensland especially – reported substantially fewer barriers to managing their money than their city-based counterparts.
Most of those surveyed acknowledged the impact of cost-of-living, but the vast majority said they expect to be “better off” in two years’ time.
NGM Group Chief Customer and Digital Innovation Officer, James Cudmore, said the research highlights how factors such as city mortgages and rental prices may be adding to disparities between regions and metropolitan areas.
“We know people in metropolitan areas have been impacted by higher mortgages, rising rents, and low vacancy rates, and through this research we’ve been able to see how that’s affected confidence,” James said.
“We’re seeing a widening gap between the city and country experience, with people in our regions feeling more in control of their money and more confident about their ability to manage their finances going forward.
“Despite a tougher economic climate, we know owning your own home is still a really important goal for many Australians, not only for the financial security this brings them personally but also because home ownership is linked to greater financial confidence generally.”
The report found that while communities in regional Australia demonstrate financial confidence and a level of security, economic uncertainties, rising living costs, and shifting employment patterns mean there are key population cohorts, such as young people and renters, who are reporting higher levels of financial stress and lower confidence in managing their money.
“Education is the key to improving financial behaviours, so as an industry we need to look at how we can best support our communities to improve financial literacy and confidence,” James said.
“This is something we deliver through our Greater Bank Finance Academy, which we created in partnership with University of Newcastle.
“Our program is designed to familiarise high school students with practical finance skills like budgeting, saving, credit and debt. Our academy may be the first time some students are introduced to these topics so tailoring the program to be relevant and approachable is essential.
“Saving for a car or earning money from a part-time job are often front of mind among students, and learning about money in a practical way will help them put their best foot forward for the future with the tools to be financially independent, secure and confident.”
Professor Kate Senior, Interim Director of the University of Newcastle’s Institute for Regional Futures said the research provided valuable insights into how Australians were weathering the rising cost-of-living.
“We’ve taken a deep dive into the financial behaviours and perceptions of not only our local regions, but also cities and regions across the nation. What we’ve found overall is that people in regional Australia have greater financial confidence than their city counterparts,” Professor Senior said.
“This type of research is vital to be able to understand the different realities faced by regional and metropolitan communities, rather than relying on broad assumptions.
“Developing a nuanced understanding of the challenges and attitudes of Australians makes sure that these communities have a voice and are not left behind in the larger national conversation.”
The University of Newcastle’s Institute for Regional Futures plays a critical role in delivering research with industry, community and government partners to tackle issues like the transformation of its regions and the need for strong, resilient communities.
Money Matters: The financial behaviours and perceptions of regional and metropolitan Australians is delivered by NGM Group, and its retail brands Newcastle Permanent and Greater Bank, in partnership with the University of Newcastle’s Institute for Regional Futures. The full report can be read online.