As part of a <a href="https://www.fulbright.org.au/current-scholars/">Fulbright Australia</a> scholarship, I have the privilege of making my way across Canada and the US, connecting with those working to improve the financial lives of vulnerable groups within their communities.

People aspire to well-being, and the financial aspect of achieving this, referred to as <a href="https://assetfunders.org/wp-content/uploads/CFSI_Consumer_Financial_Health_0415.pdf">financial health</a> (having day-to-day financial systems that build long-term resilience and opportunity), <a href="https://www.pwc.com/us/en/industries/private-company-services/library/financial-well-being-retirement-survey.html">financial wellness</a> (achieving financial stability and address the financial issues that cause them stress) or <a href="https://www.consumerfinance.gov/data-research/research-reports/financial-well-being/">financial well-being</a> (the ability to meet current financial needs, feel secure about their future, and are free to make choices to enjoy life) in different parts of the world, is a growing area of interest for researchers, policymakers and practitioners.

This article, the first in a series exploring how my learning journey can strengthen the well-being of low income Australians, focuses on financial well-being in Australia and four comparable countries. It’s based on research led primarily by Professor Elaine Kempson at the <a href="http://www.bristol.ac.uk/geography/research/pfrc/">Personal Finance Research Center</a>.
<blockquote>This article focuses on financial well-being in Australia and four comparable countries.</blockquote>
Her <a href="https://www.researchgate.net/project/Understanding-financial-well-being">work</a> links cross-country surveys conducted in <a href="https://www.bristol.ac.uk/media-library/sites/geography/pfrc/pfrc1705-financial-well-being-conceptual-model.pdf">Norway</a>, <a href="https://www.ccpc.ie/business/wp-content/uploads/sites/3/2018/12/Financial-Well-being-in-Ireland-Final-December-2018.pdf">Ireland</a>, <a href="https://www.canada.ca/en/financial-consumer-agency/programs/research/post-symposium-research-report-financial-well-being-canadians.html">Canada</a> and <a href="https://financialcapability.gov.au/files/anz-financial-wellbeing-summary-report-australia.pdf">Australia</a> and <a href="https://financialcapability.gov.au/files/anz-financial-wellbeing-summary-report-new-zealand.pdf">New Zealand</a> on financial well-being, which she defines as ‘being able to meet all one’s current commitments and needs comfortably, and having the financial resilience to maintain this in the future’. The selected countries are high-income, developed economies with virtually universal access to formal financial services except for Ireland, where 5 percent of the population doesn’t have an account. Generally, gender isn’t a barrier to access yet income is, as the poorest 20 percent of people are the most likely to be excluded, particularly those who are unemployed. Given similar levels of inclusion, this paper explores how these countries compare on financial well-being. What insights can be gleaned on what’s working globally, what’s not, and areas where Australia should prioritize the limited resources at hand?
<h2>Exploring Financial Well-being in Developed Economies</h2>
Kempson frames the research findings around three distinct components of financial well-being: meeting current commitments, being financially comfortable now, and having the financial resilience to maintain this in the future. At the national level, a country with high financial well-being is one where the population has the freedom and ability to fully participate in society and the economy. Despite similar levels of financial inclusion, <strong>Table 1</strong> reveals a considerable variance in overall financial well-being across these countries. (All tables in this post are from <a href="https://www.canada.ca/en/financial-consumer-agency/programs/research/post-symposium-research-report-financial-well-being-canadians.html">this report</a> from the Financial Consumer Agency of Canada).

Financial Well-Being: How Does Australia Measure Up?

Australia

Canada

East Asia and Pacific

Europe and Central Asia

Ireland

New Zealand

North America

Norway

Financial Inclusion Week 2019

Financial Capability

Financial Health

Personal Financial Management

Resilience

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Vinita Godinho

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Financial Well-Being: How Does Australia Measure Up?