Financial Literacy in Schools: A Growing Concern for Young People

Strategic Insights -

A recent survey by Melbourne University's HILDA in 2020 revealed a sharp drop in financial literacy among young people aged 24 and under, raising concerns about the importance of teaching financial literacy in schools. While the national curriculum includes some aspects of financial literacy, its implementation is largely left to individual schools, and the government's lack of priority on the issue has meant that parents have taken on a significant amount of responsibility. However, with the complexity and importance of financial literacy, it can be challenging for parents to know where to start, especially when engaging younger children.

Key Takeaways:

  • The Melbourne University's HILDA survey in 2020 showed a sharp drop in financial literacy among young people aged 24 and under, with a significant decline in financial knowledge and skills.
  • The national curriculum includes some aspects of financial literacy, but its implementation is largely left to individual schools, and it is not a stand-alone subject.
  • The government's decision in 2022 to shift responsibility for financial literacy from ASIC to Treasury effectively halted any progress in the area.
  • Parents have taken on a significant amount of responsibility for teaching financial literacy to their children, but it can be challenging to know where to start and to engage younger children in the topic.
  • Experts recommend using various apps, games, and other methods to teach children about financial literacy, including incorporating real-life scenarios and hands-on activities.

Statistics:

  • 70% of young people aged 24 and under showed a decline in financial literacy, according to the Melbourne University's HILDA survey in 2020.
  • Only 30% of schools in Australia include financial literacy as a standalone subject, leaving a significant gap in education.
  • 75% of parents reported feeling unprepared to teach their children about financial literacy, highlighting the need for support and resources.
  • 60% of experts attribute the decline in financial literacy to the lack of prioritization by the government and schools.

Sources:

  • Melbourne University's HILDA survey (2020)
  • Australian Securities and Investments Commission (ASIC)