Financial stress rising in Australia

About one third of Australians are living pay cheque to pay cheque, according to the latest insight from BT Financial Group.

The 2016 BT Australian Financial Health Index shows 32% of Australians always or often find themselves relying on pay cheques to sustain them throughout the month. The number grew from 29% in the previous year.

The research also found 30% of Australians are concerned about the amount of debt they have to pay off each month, despite about 70% believing they have 'complete' or 'good' control over their finances.

Income levels have no significant bearing on attitudes toward debt with the research showing similar levels of concern across all income brackets, according to BTFG head of financial literacy and advocacy Bryan Ashenden.

"No one is immune, we all have worries about our money from time to time, but what can make a difference is to put steps in place, so that we worry less," Ashenden said.

In terms of demographics, millennials appear to be the most financial prepared as 49% state they always or often create plans to reach financial goals, while only 39% of Generation X respondents said the same. However, 18% of millennials admit to often or always spending beyond their means, compared to just 10% of Generation Xers.

Ashenden said encouraging open conversations about money with loved ones is the first step taking control of finances.

"From there we can start to build a picture of what our finances look like and put steps in place to better manage our money," Ashenden said.

Read more: AustraliaAustraliansBT Financial GroupBryan AshendenBT Australian Financial Health IndexGeneration Xers
Editor's Choice
DARREN SNYDER
About three-quarters of Australian institutional investors are incorporating environmental, social and governance factors in investment decisions.
JAMIE WILLIAMSON
Businesses looking to integrate enhanced technological capability must consider its future impacts, or else risk creating a greater trust deficit in the financial services industry.
ALEX BURKE
A comprehensive review of Praemium chief executive Michael Ohanessian's termination and subsequent reinstatement determined the previous board acted inappropriately and unreasonably.
JAMIE WILLIAMSON
Advisers will soon have access to Challenger's deferred lifetime annuities through Colonial First State platforms.
Videos
Brought to you by
27 APR 2017
Smart beta strategies have come of age. I remember them being discussed several years ago with either cynicism or amusement among the institutional circles. Not many took 'smart beta' seriously. The tone ...
Get it Daily
Keep up to date, don't be the last to know! Get the Financial Standard Daily Newsletter.
SUBSCRIBE
Products
Pocket investment guides featuring adviser case studies and a glossary.
Investing trends and strategies from the industry’s thought leaders.
Putting the spotlight on investment products that matter.
Expert Feed
Michelle Baltazar
FS ADVICE
A case for digital activism
The time is ripe for financial advisers to embrace their role as digital activists - fiduciaries who are early adopters of finance ...
Emma Rapaport
FS SUPER
Smashed on university fees, smashed on retirement
Since Scott Morrison's pre-budget announcement that debt would be reclassified as 'good' or 'bad', the government spending spree has ...
Christopher Page
FS PRIVATE WEALTH
The next generation
On March 20, David Rockefeller - former Chase Manhattan chair and last of Standard Oil founder John D. Rockefeller's grandchildren ...
Michelle Baltazar
FS MANAGED ACCOUNTS
Hitting the mark
Ten years from now, every financial adviser in the country will be offering their client a managed account solution. It may happen ...
Featured Profile
Professional Subscription for $295
(inc GST) for 1 year.
SUBSCRIBE
OTHER PUBLICATIONS
FS Advice
The Australian Journal of Financial Planning.
Get the free iPad app
Download the Financial Standard iPad app for FREE.
DOWNLOAD
Link to something 2p7PpxYB