IDEAS home Printed from
   My bibliography  Save this paper

The Distribution of Financial Literacy in Australia


  • Andrew C. Worthington


Ordered logit models are used to predict financial literacy on the basis of individual demographic, socioeconomic and financial characteristics. The data is drawn from the 2003 ANZ Survey of Adult Financial Literacy in Australia and relates to 3,548 respondents. Financial literacy is defined, amongst other things, in terms of standard mathematical ability and understanding of basic and advanced financial terms. Factors examined include gender, age, ethnicity, occupation, educational level and family structure, along with household income, savings (including superannuation), and mortgage and non-mortgage debt. The evidence suggests that financial literacy is highest for respondents aged between 50 and 60 years, professionals, executives, business and farm owners, and those who have completed university or college with higher levels of income, savings and debt. Financial literacy is lowest for females, the unemployed and other non-workers, those from a non-English speaking background, and those with only the lowest levels of secondary education. The models best predict the highest and lowest levels of financial literacy.

Suggested Citation

  • Andrew C. Worthington, 2004. "The Distribution of Financial Literacy in Australia," School of Economics and Finance Discussion Papers and Working Papers Series 185, School of Economics and Finance, Queensland University of Technology.
  • Handle: RePEc:qut:dpaper:185

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Andrew C. Worthington, 2003. "Debt as a source of financial stress in Australian households," School of Economics and Finance Discussion Papers and Working Papers Series 164, School of Economics and Finance, Queensland University of Technology.
    Full references (including those not matched with items on IDEAS)


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:qut:dpaper:185. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Angela Fletcher). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.