Dollars and sense

Compare the Market’s Financial Consciousness Index Edition 2

A lot has happened over the past year. Globally, we have seen falls in economic growth; the results of ongoing concerns around global trade wars and tariff retaliations (think China and the US), and political uncertainties (think Brexit). These all contribute to uncertainty, and uncertainty feeds into slowing the growth of the economy.

The same can be said for the Australian economy; it’s slowing down. Falling house prices have weighed on consumer spending and on housing construction, while the effects of the drought have also dragged down growth. Indicators like inflation and wage growth are likely going to continue to disappoint in the near-term.

So what does this all have to do with the 2019 Financial Consciousness Index (FCI)? In short… everything.

Last year, Compare the Market engaged Deloitte Access Economics to develop a FCI to be measured overtime and track how Australia fares. This year, Compare the Market has engaged Deloitte Access Economics to see just how much has changed, and what is driving those changes, compared to the 2018 FCI.

Like last year, the FCI measures the extent to which a person is not just financially literate, but whether they are conscious of their ability to affect their own financial outcomes, all the way to their willingness to act, and the extent to which they are able to participate in sophisticated financial matters.

Compare the Market’s Financial Consciousness Index Edition 1

In 2018, Compare the Market engaged Deloitte Access Economics to develop a Financial Consciousness Index. The FCI measures the extent to which a person is not just financially literate, but whether they are conscious of their ability to affect their own financial outcomes, all the way to their willingness to act, and the extent to which they are able to participate in sophisticated financial matters.