Journal
SUSTAINABILITY
Volume 14, Issue 7, Pages -Publisher
MDPI
DOI: 10.3390/su14073736
Keywords
financial shocks; financial stress; financial resilience; COVID-19
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The purpose of this article is to review the impact of the COVID-19 pandemic on Australian household finances, with a focus on low-income households and one-parent families with dependent children. It was found that these groups were hit the hardest, having to forfeit a significant portion of their incomes to absorb financial shocks. While they were adept at budgeting, their ability to save regularly and seek financial information was weak.
The purpose of this article is to provide a review of the impact of the COVID-19 pandemic on Australian household finances and understand how the pandemic has had significant repercussions for household finances and behaviours toward saving and spending goals. Based on a national survey conducted by the Australian Bureau of Statistics in December 2020, we report that financial shocks continued to hit low-income households and one-parent families with dependent children the hardest. The lowest-income households had to forfeit a week's worth of income on a less expensive shock but three times their weekly income to absorb a more expensive shock. The low-income households and one parent family with dependent children did well in following a budget, however, they were in a weak position when considering the ability to save regularly. The overall households also had a low rate of seeking financial information, counselling or advice from a professional. These findings will have implications for the policymakers and advisors who assist households in sustaining their finances and well-being.
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