Two in three Australians think about their finances at least once a day: Wisr

Australian fintech leader Wisr has released its latest research report unpacking the money topics on Australians’ minds.

The Money On Your Mind report surveyed 3,488 consumers and 718 finance brokers on key topics relating to personal finance, their relationship with money and new technologies impacting the future of finance.

It’s all about confidence

Despite high interest rates and rising inflation, financial confidence remains high with 80% of Australians stating they feel confident about their current financial situation. Unsurprisingly, the three most common reasons given by the 20% of those surveyed who stated they weren’t confident about their financial position were:

1. The rising cost of living,
2. The macroeconomic environment including factors such as inflation and interest rates,
3. Their own spending habits

On the other hand, when finance brokers were asked about their clients’ financial confidence, only 63% believed their clients felt secure in their finances.

Another insight highlighting a shift towards a positive financial mindset found that half of Australians (47%) rated their financial literacy as good or exceptional. In addition, 7 in 10 respondents (69%) noted that they had taken steps to improve or develop their financial literacy in 2024, demonstrating a growing dedication towards developing positive financial attitudes.

Wisr’s Chief Growth Officer, James Goodwin, commented, “We know that money is definitely on our minds and it’s heartening that so many Australians are taking steps to better their financial selves. From just starting the conversation (literally) by discussing finances with family and friends to undertaking self-education through channels like listening to podcasts and reading the news, this trend towards taking accountability for improving one’s financial literacy is incredibly positive.”

Stress on the brain

While financial confidence appeared to be high, many Australians still faced financial stress in 2024. Just over half of Australian women (54%) stated that they were currently or had experienced financial stress at some point during the year compared with just 38% of Australian men.

Women aged between 18 and 24 were most likely to be financially stressed with 65% of respondents noting that they were or had experienced financial stress last year. On the other hand, men aged over 55 were the least likely to be financially stressed with only 27% of men claiming to have experienced financial stress.

Interestingly, Australian financial brokers believed their clients to be under more financial stress with four in five brokers (79%) stating their clients were under more financial stress in 2024 than in previous years.

While financial stress wasn’t something that impacted all consumers, two in three Australians (64%) thought about their finances at least daily. When asked when they were mostly likely to think about money, the most popular occurrences were:

1. Every time they spend money (34%)
2. When doing their weekly/monthly budget (26%)
3. When they have bills or repayments due (17%)

Goodwin continued, “There’s clearly work to do when it comes to supporting Australians who are experiencing financial stress. Unsurprisingly, this stress has been attributed to external factors with the rising cost of living as well as the cost of renting and mortgages the two most common reasons attributed to financial stress. Our research demonstrates that women are more likely to experience financial stress and that more generally, money matters are clearly on Australians’ minds.”

Connecting with cards, cash and credit

The survey also examined how Australians access finance and engage with financial institutions. Among respondents with a credit card, one in three have two or more cards. The two most popular reasons for having more than one card were to accumulate points (38%) and to spread debt (19%).

The most popular factors impacting how consumers selected a credit card provider were:

• Having a pre-existing relationship with the bank/financial institution offering the card (39%)
• Having access to benefits like points, lounge passes etc.(27%)
• Low fees (13%)

When it comes to Australians who use a buy-now-pay-later service, two in five (41%) mainly use the service for big ticket purchases while just under a fifth (18%) use it for the majority of their spending.

“Australians’ interactions with money continue to evolve with new technologies and innovations driving this shift. Consumers are demanding more from financial services companies and it’s telling that additional benefits that come with products like credit cards are becoming more of a drawcard. With greater disruption across financial services and the rise of fintechs, consumers have more options than ever before. It’s up to businesses to provide greater value to remain front of mind of an increasingly picky customer base,” stated Goodwin.

In the ongoing debate between physical cash and cards, only 14% of those surveyed were completely cashless. Interestingly, cashless consumers are firm in their preferences with 85% stating they are unlikely to shop at businesses that do not accept card payments. Looking ahead, three in five (58%) Australians see a future where they don’t use physical cash in day-to-day life.

An eye on the future

While Australian businesses might lead Artificial Intelligence (A.I.) usage globally, only 41% of Australians believe that A.I. will profoundly impact how they engage with their money.

Trust in A.I. remains low with 80% of respondents stating that they would not trust an A.I. chatbot to provide accurate financial information, education or advice. This skepticism extends to finfluencers with only a third of Australians finding them a reliable source of financial education.

Data and privacy also appear to be front of mind with less than half of respondents (44%) saying they would share their personal data with a financial institution if it meant a cheaper price on a product or service. Meanwhile, over a third of Australians (37%) don’t trust their financial institutions to keep their data safe.

“With consumers more focused on their financial futures than ever, it’s clear that trust is essential for consumers. In fact, our research found that the top factor impacting which financial institution a consumer selects is the trust they have in the institution itself,” said Goodwin.

Finally, when it comes to money goals, an overwhelming majority of consumers noted that they are focused on building their savings and growing their wealth (70%) as a way to give their finances a boost in 2025. The next most popular tactics were clearing debts (44%), spending less (44%) and earning more (41%).

Goodwin concluded, “Despite consumers facing a number of challenges in 2024, it appears Australians are ready to put their financial futures first and take action in 2025. The simple act of taking the time to establish goals is a great way for Aussies to set themselves up for  long-term financial success.”