According to a survey by ASIC's Moneysmart, over half of Australians (53%) reported that financial concerns were their primary source of stress, with a particular impact seen on young Australians and women​(ASIC Home | ASIC).

Around one-third of Australians do not have enough savings to cover an emergency of $1,000. This highlights a lack of preparedness for financial crises among many Australians.

Australia's National Financial Capability Study: This study found that Australians with lower levels of financial literacy are more likely to experience financial stress and rely on government assistance. The survey showed that 30% of Australians with low financial literacy were more likely to depend on social welfare compared to 15% of those with higher financial literacy.

Financial stress is closely linked to negative mental health in Australia. 46% of people in debt report struggling with depression, anxiety, and stress, exacerbated by poor financial management.

Approximately 21% of Australians experience high levels of financial stress, with many unable to meet unexpected expenses. More than 18% of Australian households hold persistent credit card debt.

Financial mismanagement is one of the primary reasons for bankruptcy in Australia. In 2020, around 48.1% of personal insolvencies were due to excessive use of credit or failure to manage personal finances.

Around 16.9% of Australians are financially excluded due to low financial management capabilitis, meaning they lack access to essential financial services like basic savings accounts or credit.

A survey by Allianz found that Australians with lower financial literacy are at a severe disadvantage, potentially missing out on earning an additional $7,869 per year in investment income. Over a 30-year period, this could equate to over $800,000 lost compared to those with higher financial knowledge. This shortfall often leaves individuals more dependent on government programs later in life​(Savings.com.au).

According to the Australian Securities and Investments Commission (ASIC), 40% of Australians worry they will not have enough money saved for retirement, often due to lack of knowledge about effective saving and investing strategies.

A 2019 study revealed that 25% of Australians do not fully understand how their superannuation works, putting their long-term retirement savings at risk.

Low financial literacy disproportionately affects vulnerable groups, including Indigenous Australians, recent immigrants, and low-income earners, further entrenching poverty and inequality.

For example, women with lower financial literacy face poorer long-term financial outcomes, such as reduced superannuation savings, which further deepens reliance on government support. The average woman at retirement age has a 21% smaller superannuation balance compared to men​(

Savings.com.au). Financial illiteracy, particularly in low-income groups, exacerbates inequality and strains social welfare systems, underscoring the need for targeted financial education programs​(Department of Social Services).