Financial capability refers to the combination of individual behaviours, personality traits and external factors that contribute to a person’s financial wellbeing.1
More than thirty percent of the Australian population has low to very low financial capability1, though this proportion has steadily decreased from almost forty-five percent in 2016. Those on low incomes, from non-English speaking backgrounds, those living with a disability (particularly mental illness), youth and the elderly, are amongst groups who are likely to have lower capabilities.
1 Muir, K., et al., Financial resilience in Australia 2015, 2016. Centre for Social Impact – University of New South Wales, for National Australia Bank.