Emergency Funds in Australian Households: An Empirical Analysis of Capacity and Sources

Posted: 4 May 2013

Date Written: 2004

Abstract

This paper examines demographic and socioeconomic characteristics as predictors of emergency fund adequacy in Australian households. The results indicate that the presence of children, the number of dependents and income-earning units, the age and ethnicity of the household head, income dependency upon retirement plans and investments and government pensions and benefits, homeownership and disposable income are significant determinants of the capacity to raise emergency funds. They are also important predictors of the likely source of emergency funds. However, they are generally better at predicting mainstay sources of funds such as own savings and loans from deposit-taking institutions and credit card usage than loans from family or friends.

Keywords: Emergency funds, Financial planning, Financial wellness, Household Expenditure Survey

Suggested Citation

Worthington, Andrew C., Emergency Funds in Australian Households: An Empirical Analysis of Capacity and Sources (2004). Journal of Financial Counseling and Planning, Vol. 15, No. 1, 2004, Available at SSRN: https://ssrn.com/abstract=2260451

Andrew C. Worthington (Contact Author)

Griffith University ( email )

170 Kessels Road
Nathan, Queensland 4111
Australia
+61 (0)7 3735 4273 (Phone)
+61 (0)7 3735 3719 (Fax)

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