Australians Leverage Internet to Boost Financial Literacy

Financial literacy in Australia is getting a major boost from cyberspace, as new research findings from life insurance company TAL found that over four million Australians are pursuing financial information through the internet.  TAL’s study had over 1,200 adult participants, whose poll findings highlighted that roughly eight million Australians reviewed financial products online during the last 12 months, while approximately four million Australians sought to educate themselves regarding their financial affairs.

The report documented other key trends as well, such as that more than one-third of respondents use the internet to research or switch their banking institutions, about one-third investigating their home and vehicle insurance online, and more than ten percent researching their life insurance options over the internet. The findings also suggest a difference in internet use among varying income brackets.  Specifically, sixty-five percent of households earning at least $90,000 per year sought online information regarding their financial options, whereas only forty-five percent of households earning less than $40,000 did so.

The findings detailed in the TAL report are similar to those found in similar studies in other countries during the last two years.  The internet continues to empower individuals and families to take more control over their finances and, as a result, a huge opportunity exists to improve financial literacy via the internet. With increasing numbers of individuals turning to the internet for financial information, tools and resources, financial education organizations, government agencies, private foundations, and academic institutions all are well positioned to roll out effective online financial education programs.

While many financial education professionals contend that consumers should not rely exclusively on the internet for their financial decisions, many agree that the internet remains a highly powerful tool for individuals to become more empowered in making better informed decisions with respect to their overall financial well-being.