Publication Details

This article was originally published as Worthington, AC, Predicting financial literacy in Australia, Financial Services Review, 15(1), Spring 2006, 59-79. Original journal available here.


Logit models are used to predict financial literacy using the 2003 ANZ Survey of Adult Financial Literacy in Australia. Financial literacy is defined in terms of mathematical ability and the understanding of financial terms. Factors examined include gender, age, ethnicity, occupation, education, income, savings and debt. Financial literacy is found to be highest for persons aged between 50 and 60 years, professionals, business and farm owners, and university/college graduates. Literacy is lowest for the unemployed, females, and those from a non-English speaking background with a low level of education.