The Australian Institute of Family Studies (AIFS) has reported that one in six Australian families are ‘very concerned’ about their finances, with almost 70 per cent of the respondents to its latest survey reporting they were at least a little concerned about their finances.
According to Senior Research Fellow at the AIFS and report co-author Jennifer Baxter, since the start of the pandemic, many families have experienced job losses, reduced work hours or business closures, contributing to a drop in income for individuals and families.
“The Families in Australia Survey captured some insights into the financial concerns and stresses of families at May-June 2021,” Dr Baxter said.
“While many respondents at this time were not too concerned about their finances, there were other families who had experienced stresses and who were worried about their current and future finances,” she said.
“There were many factors impacting these financial concerns.”
Dr Baxter said low-income families faced more challenges than others and, aside from income differences, these experiences were also more apparent for renters and for single people.
She said COVID-19 focused attention on families’ experiences of financial stresses and hardship, however, for many families the causes of their financial concerns were multi-factored and would continue to be relevant beyond the pandemic.
She said one in six survey respondents were very concerned about their current financial situation and one in five were very concerned about their future financial situation.
“Just over one in three were a little concerned about either their current or future financial situation,” Dr Baxter said.
“The balance of respondents was not at all concerned, with the proportion higher when reporting about current finances (31 per cent) rather than future finances (24 per cent).”
She said the Survey covered the costs of living now and in the future; having enough savings for retirement; loss of employment or reductions in work hours; physical and mental health issues; and providing financial assistance to family members.
AIFS’s 10-page Report can be accessed at this PS News link.
