Abstract
Despite a national focus on improving financial knowledge and practice, research has shown that many young Australians have low financial literacy. Commissioned by the Financial Basics Foundation, this report presents the findings of a research project investigating the personal finance experiences of young adults from culturally and linguistically diverse (CALD) backgrounds, many of whom had been living in Australia for nine or fewer years or whose parents were still living overseas. Using data collected through in-depth biographical interviews, surveys and video elicitation, insights were obtained regarding the barriers they face concerning money management and navigating Australian financial systems, and the strategies they deploy to manage their finances and financial obligations. The findings point to potential interventions that are sensitive to cultural differences. Cultural backgrounds and relationships influence young people’s financial knowledge, attitudes, and behaviours. Many participants emphasised the influence of family and cultural antecedents, such as religion and cultural traditions, on how they think about and manage their finances, including expectations of charitable giving. The information sources that these young people rely on for advice about financial matters, while diverse, are not always accurate. While most participants reported turning to their parents for financial advice, for those whose parents are overseas, it can be difficult to communicate with their parents about their finances. To manage this gap, young adults from culturally and linguistically diverse backgrounds are resourceful and draw on their broader community for information. However, the information they receive is not always appropriate for the Australian context. As a consequence, there is an increasing trend towards self-research. Participants report using Google and social media sources (TikTok, Reddit, YouTube, Instagram) to access information on how to manage their money. Many participants find it difficult to find advice relevant to their life stage and financial circumstances. Experiences of scams were also common within this group. Particular attention needs to be placed on scams education and communication, as embarrassment, judgment, and cultural norms may discourage individuals from seeking help. Potential interventions focussed on providing targeted information through digital forums already used by young adults from culturally and linguistically diverse backgrounds to support contextualised money management and financial literacy are provided.