Financial Resilience in Australia
The research program aimed to better understand financial resilience among people living in Australia and to identify where resources can and should be invested to best increase people’s ability to cope with financial adversity.
The research aimed to shift the conversation from “why are some people unable to cope with financial shocks?” to “what can be done to improve financial resilience for everyone?”
What is financial resilience?
Financial resilience is being able to bounce back from a financial shock and there are a number of things that help people's financial resilience, including income, savings, a willingness to seek financial advice, connections with family and friends, support from community and government organisations and access to appropriate banking products, such as credit and insurance.
The main difference between financial exclusion and financial resilience is that financial exclusion measures access to financial products and services only, whereas financial resilience combines and measures four components for coping with financial adversity and achieving financial security.
CSI's research identified these four components that work together to enable financial resilience. They include economic resources, financial products and services, financial knowledge and behaviour, and social capital.