Recent findings from not-for-profit Ecstra Foundation has highlighted that equipping young Australians with fundamental financial literacy skills has an “immediate and positive impact”.
Namely, it found that the nationwide Talk Money program, which aims to bridge the financial education gap in schools, has bolstered the financial literacy, knowledge, and confidence of over 100,000 school students.
Ecstra Foundations’ findings, following the completion of the program, confirmed that 95 per cent of all students said they learnt something in the workshops that they can use.
Caroline Stewart, Ecstra Foundation chief executive, said financial wellbeing is aligned to the economic and social goals set out in the government’s first national wellbeing framework, “Measuring What Matters”.
“However, achieving outcomes across many economic and social indicators may prove difficult if the worsening gap in financial literacy and capability across all age groups in Australia is not addressed,” she conceded.
According to the foundation, young people aged between 15 and 24 fare the worst, with many leaving school without much needed practical financial decision-making skills as they undertake further study and work, and grapple with the cost-of-living pressures of housing, transport, and student debt.
“An important and obvious practical first step is to provide dedicated financial education in schools,” Ms Stewart explained.
On workplace outcomes, 75 per cent of year 9 and 10 students stated they now know how to manage work administration including their tax and super, up from 34 per cent prior to attending the workshops.
Additionally, 87 per cent of students said that after the program, they now understand their rights at work, an 80 per cent increase, with 76 per cent feeling capable of discussing this with their employer, up 69 per cent.
“With Australian youth employment rates at a record high, teaching students the financial fundamentals of earning such as calculating and reading payslips, tax, superannuation and understanding their rights at work as they get their first job is absolutely crucial to help them succeed in the workplace,” Ms Stewart said.
She concluded that students who are given the proper financial tools will also be empowered to adopt them in their everyday lives, particularly as they enter the workforce.
“In a year 9 and 10 Northern Territory workshop, students realised their pay had been wrongly calculated resulting in underpayment, and they were provided with the tools to raise this with their employer,” Ms Stewart recounted.
So, now that ASIC and the RC (Community Expectations) seemed to suggest institutions such as CBA in schools was a bad idea, now the replacement – who will it be?