It claims to be a test of basic financial literacy. However, more than half of all Australians can’t correctly answer the five questions on the latest Household, Income, and Labour Dynamics in Australia test. These questions were designed to test our knowledge of basic financial concepts including financial numeracy, money, risk return, and inflation.

The results of the research, conducted at the University of Melbourne, found Australian men are typically more financially literate than women. Nearly half of all men surveyed answered all the questions correctly compared to just 35.4 percent of women.

Young people also struggled to correctly answer the financial questions. Just 24 percent of Aussies aged 15 to 24 got all five questions right, compared to 38.3 percent of 25- to 34-year-olds, 38.2 percent of 35- to 44-year-olds, 49.2 percent of 45- to 54-year-olds, nearly 55 percent of 55- to 64-year-olds, and 39.6 percent of Australians aged 65 and older.

The results have troubled financial experts, who say the population’s ignorance on money matters is reaching “dangerous” levels. However, many are also unsurprised.

“I’m not surprised we didn’t do well because financial understanding isn’t something we prioritise in Australia,” financial planner Melissa Browne told news.com.au. “It isn’t taught at school or universities so we sort of piece it together ourselves later in life.”

“I think it’s concerning that we’re abdicating our responsibility to learn about finances. It’s a really dangerous option, because there’s ever-increasing change in the world of finance and, if we don’t even have a basic level of financial literacy, it could leave us all at risk.”

While education at all levels would help, Ms Browne said Australians should also take a personal interest in their money to improve their knowledge. She encourages Australians to plan ahead for future events, like retirement, to boost their financial literacy.

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