NZ Herald
  • Home
  • Latest news
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather forecasts

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
    • The Great NZ Road Trip
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
    • Cooking the Books
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • What the Actual
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business

Money quiz: Are you smarter than half of Australians?

By Ben Graham
news.com.au·
1 Aug, 2018 06:10 AM5 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

An embarrassingly high number of Aussies can't pass this money quiz. Photo / 123RF

An embarrassingly high number of Aussies can't pass this money quiz. Photo / 123RF

A basic test designed to gauge our understanding of finance is proving too hard for most Australians — and experts say their ignorance on the subject is reaching "dangerous" levels.

Embarrassingly, more than 50 per cent of Australians couldn't answer the simple set of five questions laid out by researchers as part of the latest Household, Income and Labour Dynamics in Australia (HILDA).

Best-selling author of Unf*ck Your Finances and CEO of The Money Barre, Melissa Browne said the results are not surprising because the vital subject has been neglected in Australia for decades — and it is leaving us at risk.

"I'm not surprised we didn't do well because financial understanding isn't something we prioritise in Australia," she told news.com.au. "It isn't taught at school or universities so we sort of piece it together ourselves later in life.

"I think it's concerning that we're abdicating our responsibility to learn about finances. It's a really dangerous option, because there's ever-increasing change in the world of finance and, if we don't even have a basic level of financial literacy, it could leave us all at risk."

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

During interviews with hundreds of everyday Aussies as part of the HILDA report, researchers at the University of Melbourne asked five questions to measure their understanding of financial numeracy, inflation, money and risk return.

The simple questions asked Aussies how much interest they would get on $100 in one year on a no-fee savings account with a guaranteed interest rate of two per cent per year.

Researchers then went on to ask what the effect of inflation might have on those savings, before asking participants whether buying shares in a single company usually provides a safer return than buying shares in a number of different companies.

Advertisement
Advertise with NZME.

Finally, they then asked participants whether an investment with a high return is likely to be high risk and how an increase on our earnings tallies with the prices of the things we buy.

Do you have what it takes?

Australia's embarrassing results

The results showed men had better financial knowledge than women — with 49.9 per cent of men and just 35.4 per cent of women answered all questions correctly.

"There is a clear gender divide in financial literacy," the report's authors concluded.

Breaking down the results by age and sex, the report's authors say financial literacy is lowest among young Aussies. Only 24 per cent of people aged 15 to 24 answered all five questions correctly.

Discover more

Business

South Africa vows to seize white-owned land

01 Aug 03:18 AM
Business

Christchurch building firm hits the rocks

01 Aug 05:04 AM
Business

KitKat lost its trade mark case: what you need to know

01 Aug 05:50 AM
Business

NZ shares fall; Pushpay and Spark drop

01 Aug 05:40 AM

This increased to 38.3 per cent for those aged 25-34, rising to 38.2 per cent for this aged 35-44 and again to 49.2 per cent for this aged 45-54.

Aussies aged 55-64 are the most financially savvy, with almost 55 per cent of participants in the HILDA study answering all five questions correctly. After we've blown out the candles for our 65th birthday however, it seems this knowledge seems to stagnate as only 39.6 of us answered all the questions correctly after we've hit the big 65.

Ms Browne told news.com.au Aussie or "Western" culture might play a role in our attitudes towards financial knowledge — adding we often find it uncomfortable to talk about money in public and many of us find it boring.

"It needs to be taught in school and university, but it's something also something we all have to have more interest in," she said. "It might not be something we get excited by, but we need a basic understanding of money if we want to retire and live well."

She said the key to remedying this dire situation is self-education and planning ahead for future events — especially when it comes to our superannuation and retirement.

Research has shown a widespread lack of financial knowledge leads us to make bad life choices and, if so many of us are making bad decisions, it could have disastrous consequences for out economy as a whole.

Advertisement
Advertise with NZME.

"Despite rising levels of income and wealth in the Australian community, the issue of financial literacy remains highly relevant, with many policymakers in the wake of the 2008 Global Financial Crisis bemoaning the widespread lack of financial knowledge," researchers Annamaria Lusardi and Olivia Mitchell wrote in a report for the National Bureau of Economic Research in 2014.

"US research, for example, has consistently shown that levels of basic financial skills are very poor among sizeable fractions of the population, and that this has ramifications for a wide range of economic decisions."

HILDA researchers looked at how financial literacy differs by region in Australia. However, they said there is "little evidence" to suggest there are big differences between our understanding based on where we live.

They discovered, however, that your job status often makes a difference.

"Financial literacy is highest for the full-time employed and lowest for the unemployed," they concluded in the report. "Indeed, even controlling for income, wealth and income support receipt, financial literacy is considerably lower among the unemployed."

They also measured how differing different economic and family circumstances and education played a role in our ability to understand basic finance.

Advertisement
Advertise with NZME.

"Partnered people have higher measured financial literacy, while children aged 15 and over living with their parents have relatively low financial literacy," the report reads.

"Single parents also have low financial literacy, although once economic outcomes are controlled for, they do not differ significantly from single people."

"University education is strongly associated with financial literacy, while those who have not completed high school have the lowest levels of financial literacy. People with non-university post-school qualifications have similar levels of financial literacy to those who have completed high school."

Save

    Share this article

Latest from Business

Lifestyle

Rice to the occasion: How a Queenstown brewery snagged gold at Tokyo Sake Challenge

09 May 04:15 AM
Business

Why Marlborough bach owners face soaring power charges

09 May 04:10 AM
New Zealand

'Prime focus': Avocado industry targets global markets

09 May 03:08 AM

“Not an invisible footprint”: Why technology supply chains need optimising

sponsored
Advertisement
Advertise with NZME.

Latest from Business

Rice to the occasion: How a Queenstown brewery snagged gold at Tokyo Sake Challenge

Rice to the occasion: How a Queenstown brewery snagged gold at Tokyo Sake Challenge

09 May 04:15 AM

Zenkuro was one of two non-Japanese breweries to be recognised at the challenge.

Why Marlborough bach owners face soaring power charges

Why Marlborough bach owners face soaring power charges

09 May 04:10 AM
'Prime focus': Avocado industry targets global markets

'Prime focus': Avocado industry targets global markets

09 May 03:08 AM
Premium
Nine fires in five years: Environment Court rules on scrap metal dealer

Nine fires in five years: Environment Court rules on scrap metal dealer

09 May 03:00 AM
Deposit scheme reduces risk, boosts trust – General Finance
sponsored

Deposit scheme reduces risk, boosts trust – General Finance

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • What the Actual
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven CarGuide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP