Financial Shocks, Financial Stress and Financial Resilience of Australian Households during COVID-19

Lan Sun, Garrick Small, Yueh-Hsia Huang and Tyng-Bin Ger
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Lan Sun: School of Business & Law, CQUniversity, Sydney, NSW 2000, Australia
Garrick Small: School of Business & Law, CQUniversity, Sydney, NSW 2000, Australia
Yueh-Hsia Huang: Department of International Trade, Chinese Culture University, Taipei 11114, Taiwan
Tyng-Bin Ger: Department of Information Management, Minghsin University of Science and Technology, Hsinchu 30401, Taiwan

Sustainability, 2022, vol. 14, issue 7, 1-13

Abstract: 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.

Keywords: financial shocks; financial stress; financial resilience; COVID-19 (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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