Cost of living pressures may have put an increased focus on money issues, but a report has shown large gap emerging in financial literacy skills.
A report by Your Financial Wellness showed 60 per cent of people were unable to answer basic financial literacy questions correctly, such as on interest and inflation.
The survey of 5000 people over 100 finance questions showed four in 10 got questions wrong relating to inflation.
It revealed that up to 75 per cent of respondents were worried about their monthly expenses, while as many as half said they had experienced stress in relation to their finances.
Your Financial Wellness chief executive Alex Hassall said the figures were eye-opening.
"We see a two-tiered financial health system, characterised by the haves and the have nots," he said.
"The true magnitude of the financial literacy problem as shown in this report needs greater policy focus from government and more attention from financial institutions."
The study found one of the largest factors in financial wellbeing was home ownership.
While the average score for renters was 5.3 out of 10 for financial wellness, it increased to 7.7 per cent for home owners.
"The great Australian dream of home ownership is the single most important socioeconomic factor underpinning financial wellness," Mr Hassall said.
"Owning a home outright results in the highest average wellness score of any variable analysed in our report."
He said the results indicated the need for a greater emphasis on financial literacy skills being taught to ensure people make the most of their money.
"It is clear from our analysis that fostering financial literacy skills needs to be a greater priority. Like wearing a hat and using sunscreen in the sun, financial literacy needs to become just as automatic," he said.
"We believe by building financial literacy culture in Australia, a brighter future will emerge with benefits for everyone, including all levels of government and the taxpayer."
