Unhealthy ways of thinking
In November 2005 AC Nielsen and the ANZ produced quantitative research into personal debt in Australia called “Understanding Personal Debt and Financial Difficulty in Australia. The survey identified six factors regarded as “unhealthy” ways of thinking about personal finance. Examine each “unhealthy” way of thinking about personal finance and explain why they are “unhealthy” including the consequences of thinking that way. Demonstrate ways that the individual can avoid these ways of thinking. Use ORIGINAL examples to illustrate your answers.
The need for today’s society to comprehend financial concepts is vital for maintenance of long-‐term personal debt within Australia. With this knowledge, people will be able to control their own finances and establish independence in this ever-‐changing economic environment. ACNielson and ANZ carried out a study demonstrating the substantial growth in household debt amongst the Australian society. It is clear there is immediate need for knowledge in this area, as household debt as a percentage of disposable income has doubled to 158% over the previous 15 years. This growth may be deemed as an uncontrollable level if households do not posses enough financial literacy. Developing
The need for today’s society to comprehend financial concepts is vital for maintenance of long-‐term personal debt within Australia. With this knowledge, people will be able to control their own finances and establish independence in this ever-‐changing economic environment. ACNielson and ANZ carried out a study demonstrating the substantial growth in household debt amongst the Australian society. It is clear there is immediate need for knowledge in this area, as household debt as a percentage of disposable income has doubled to 158% over the previous 15 years. This growth may be deemed as an uncontrollable level if households do not posses enough financial literacy. Developing