Recently, ifa reported on adviser suggestions that Australia is one of the most financially illiterate nations in the developed world, with industry figures such as Instreet managing director George Lucas saying “financial literacy is not taught well at schools”.
Speaking to ifa in response to these claims, a spokesperson for the Department of Education said, “The Australian Curriculum…provides a number of opportunities for students to develop financial literacy”.
“For example, the mathematics learning area provides opportunities to explore budgeting, planning and investigation of financial claims,” the spokesperson said.
In secondary school, the economics and business content offers students the opportunity to learn about managing money and assets, the spokesperson added.
Further, there are initiatives such as the ASIC MoneySmart Teaching website, as well as the National Consumer and Financial Literacy Framework and the Australian Curriculum, Assessment and Reporting Authority (ACARA), which support the teaching of financial skills to high school students, the department said.
“The Australian government recognises the importance of ensuring that young people have the information and knowledge to manage their financial affairs,” the department said.
Despite this, others believe there needs to be greater collaboration between state and federal education departments and finance experts.
“Students need to understand the importance of everyday budgeting and spending within your means, taxation and superannuation as these are common issues that are not often a focus in the curriculum, and yet are necessary in the working world,” MaKe Financial Decisions financial adviser Mary Kelly told ifa.
“Schools are focused on preparing students for a career. However, once someone is in their ideal or chosen career, they may still have no idea on how to live within their means, understand their superannuation and save on tax.”
According to a 2015 survey conducted by financial education firm, The Wealth Academy, 65 per cent of students said their high school did not prepare them with the financial life skills they need as adults and 71.1 per cent of students believe financial life skills should be taught weekly, monthly or at least once per term.
Ms Kelly said advisers can help by, “getting involved with schools in their local community and giving back to schools where possible”.
“I am building a relationship with my old high school now by talking to students and teachers about various financial aspects,” she said.
The Department of Education said, ”Financial advisers wishing to engage with schools should familiarise themselves with the Australian Curriculum content. They may also wish to discuss their work with the relevant education authority.
“The Australian government is committed to attracting high-quality candidates to the teaching profession who might not otherwise have considered a career in education.”
If the job of schools was to prepare people for adult life, then every school day would be one long home economics lesson. Schools would teach kids how to shop within a budget, manage a credit card, sew a hem, darn a sock, tie a tie, fill in a form, interpret a utility bill, and so on…useful things of course, but not what we should expect of our schools, whose primary goal is, and should remain, to prepare our kids for higher learning. If any child finishes school without sufficient life skills to conduct themselves in a world of adults, I assure you – the blame lies not at the feet of the school, but the parents.
Financial literacy for students. Like this idea very much and long overdue. Can our politicians be the test students first I ask?. Lessons like, do not spend what you do not have. Do not steal money from the taxpayer cookie jar to spend on a whim buying apartments in Queensland or on parties with your mates to usher in the New Year because the money spent is not yours. Do not give money away that does not belong to you for no return as in the Victorian Government wasting $1.2 Billion on the East West link. Learn how to get value for money in the interest of your trusted folk such as the voter. Yes…financial literacy is a good idea for our young kids who will have a hell of time trying to deal with what my generation is leaving them thanks to the fools in Cantberra. Debt debt and more debt as they pay of University Fees to get a job not a career and struggle with that mortgage on a family home or pay rising rents while raising a family and planning for retirement. Seriously our fools in Canberra have let and are letting and unless change occurs will let our children down in time to come..