At a time when consumers are being asked to make more financial decisions than ever before, the environment in which they are making those decisions is becoming increasingly complex. Knowledge alone is not enough. People don‘t always act in their own best interests (e.g. by not engaging at all or by making ‘bad‘ decisions). Behavioural studies and ASIC‘s own research identifies a range of related barriers that prevent people from making good financial decisions. These include information and choice overload, complexity and uncertainty, time effects and pressures, over (and under) confidence, self-control and framing‘ (i.e. how information is presented).
Financial Literacy: Australians Understanding Money1 (ASIC)
70-90% of young people want to learn more about money issues, including understanding rights and responsibilities (91 %); saving (90%); recognising a scam (88%); planning for the financial future (85%); budgeting (84%); dealing with financial services providers (84%); getting information about money (83%); managing debt (83%); understanding financial language (82%); choosing appropriate insurance (80%); investing (81%); dealing with credit cards (73%); and ensuring enough money for retirement (70%).