The Federal Government in Australia needs to “step up” and recommit to the National Financial Capability Strategy. The call was made following the findings of a survey that shows a decline in the financial literacy gap.
As a result of the survey, industry stakeholder, the Ecstra Foundation, is calling for a lead agency structure to be implemented to co-ordinate delivery of financial literacy programs around the country.
The latest Household, Income and Labour Dynamics in Australia (HILDA) survey of more than 17,000 Australians, undertaken by the Melbourne Institute, reveals a drop in financial literacy levels across all age groups, with the largest declines among 15-24 year olds.
Caroline Stewart, CEO of the Ecstra Foundation, says Global Money Week is an ideal time to raise awareness of the need for more support for financial education in Australian schools and communities.
“Financial wellbeing is intrinsically linked to the overall physical, mental and social health of individuals and communities,” says Stewart.
“However, improving outcomes across these domains is almost impossible to achieve if we don’t acknowledge and address the long standing gaps in financial literacy and capability nationally.”
She says the latest HILDA report makes it clear financial literacy is declining in Australia and is a significant concern when cost of living pressures are starting to hit home.
…no progress has been made on improving the financial literacy of the Australian population since 2016 and in fact we have gone backwards…
According to the HILDA report, no progress has been made on improving the financial literacy of the Australian population since 2016 “…and in fact we have gone backwards”.
While there are a range of consumer advocates, educators, community organisations, academics, and financial institutions engaged in financial capability work, Stewart says the HILDA data, as well as other similar studies, are a stark reminder that without a holistic approach to financial education, there will continue to be a decline in financial literacy in Australia.
“This is why we believe the Australian Government needs to step up and recommit to the National Financial Capability Strategy, which Treasury took over from ASIC in 2021,” says Stewart.
“A lead agency could drive the strategy and outcomes including coordinating the efforts of the many organisations working to support consumers, and clearly communicate the benefits of a national approach working to build the future economic security and wellbeing of all Australians.”
Ecstra launched its Talk Money program in February 2022 in response to the financial education gap in Australian schools. The in-classroom workshops teach foundational money lessons for life, are interactive to encourage students to ask questions, discuss what they are learning and take those lessons home to share. The program is offered free to all schools for years 5-10.
Ecstra Foundation is a national charitable foundation committed to building the financial wellbeing of Australians, within a fair financial system. Ecstra works with 80 partners across government, communities, academics and business.