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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Lan Sun & Garrick Small & Yueh-Hsia Huang & Tyng-Bin Ger, 2022. "Financial Shocks, Financial Stress and Financial Resilience of Australian Households during COVID-19," Sustainability, MDPI, vol. 14(7), pages 1-13, March.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:7:p:3736-:d:777113
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    References listed on IDEAS

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    3. Steffen Westermann & Scott J. Niblock & Jennifer L. Harrison & Michael A. Kortt, 2020. "Financial Advice Seeking: A Review of the Barriers and Benefits," Economic Papers, The Economic Society of Australia, vol. 39(4), pages 367-388, December.
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    5. Mathieu Despard & Michal Grinstein-Weiss & Shenyang Guo & Samuel Taylor & Blair Russell, 2018. "Financial Shocks, Liquid Assets, and Material Hardship in Low- and Moderate-Income Households: Differences by Race," Journal of Economics, Race, and Policy, Springer, vol. 1(4), pages 205-216, December.
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    Cited by:

    1. Bijay Prasad Kushwaha & Atul Shiva & Vikas Tyagi, 2023. "How Investors’ Financial Well-being Influences Enterprises and Individual’s Psychological Fitness? Moderating Role of Experience under Uncertainty," Sustainability, MDPI, vol. 15(2), pages 1-22, January.

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