Australians’ financial wellbeing has fallen as households struggle with the higher cost of living, according to a new report, prompting a call for a review of the country’s financial literacy strategy. Your Financial Wellness surveyed 1200 people and found that the average “wellness index score” fell 11 per cent from 6.4 in 2021 to 5.7 now. Index scores are based on responses to nine questions about current financial conditions, future prospects, savings and money management behaviour. At the same time, ANZ’s latest financial wellbeing report highlights a persistent gap between the financial wellbeing of men and women in Australia. According to Your Financial Wellness, 43 per cent of respondents reported “high or overwhelming” financial stress, compared with 27 per cent in 2021. Sixty per cent of people “sometimes worry” about meeting normal monthly expenses and around a third said they often can’t afford to eat out or go to the movies. Your Financial Wellness chief executive Alex Hassall said one of the big underlying problems is poor financial literacy. Only 20 per cent of respondents could correctly answer three financial literacy questions. This finding is in line with a University of Newcastle survey commissioned by Greater Bank last year, which found that only a quarter of respondents were able to correctly answer all five financial literacy questions, which covered interest rates, inflation, diversification, risk and the time value of money. And the most recent edition of the Melbourne Institute’s Household, Income and Labour Dynamics in Australia (HILDA) Survey, published in December, reported that people of all ages scored lower in a financial literacy test, compared with results in 2016. Hassall said: “This lack of financial knowledge leads to higher financial stress and difficulty making sound financial decisions.” Your Financial Wellness called for a reboot of financial literacy in Australia, including a review of the National Financial Literacy Strategy and the establishment of financial literacy targets. The survey also found that women reported lower levels of financial wellbeing than men, with an average score of 5.5 (out of 10), compared with an average of six for men. The disparity between the financial wellbeing of men and women was the focus of the ANZ report, which said women had an average financial wellbeing score of 62 (out of 100), compared with average score of 66 for men. Close to a third (31 per cent) of women were “struggling to get by”, compared with 24 per cent of men. People classified as struggling to get by had little or no savings and had difficulty meeting bill and credit payments. Most said they were anxious about their future financial situation. Common characteristics among the women in that position were that they had been divorced, were single parents, had a disability or long-term health condition and reported poor mental health. The gap is across all age groups. The scores are based on a survey that looks at how people are meeting everyday needs, level of comfort with their financial situation over the coming 12 months, ability to cope with financial setbacks and the level of security about the future. The