AIA Updates Policy Fees
AIA Australia updated policy fees on 1 October 2017 for its Priority Protection and Priority Protection for Platform Investors range of products.
The new policy fees, adjusted in line with the Consumer Price Index, will apply to new business effective from 1 October. The insurer notes that existing policy holders will also have the new policy fees applied on their next policy anniversary following 1 October 2017.
World Financial Planning Day to Focus on Financial Literacy
Financial literacy standards are falling within Australia but efforts to left them will be the focus of World Financial Planning Day on 4 October, which is being promoted in Australia by the FPA.
The Association stated that Australia ranks ninth in the world in terms of financial literacy and almost two-thirds of adults understood basic financial concepts but this was not being reflected among young people with around 20% of 15-year-olds lacking basic financial literacy.
“We are committed to ensuring that consumers have access to the best financial advice. We see financial literacy as key to this process, allowing consumers to confidently make decisions in terms of finding the right financial planner and acting on their advice,” FPA Chief Executive, Dante De Gori said.
World Financial Planning Day has been organised by the Financial Planning Standards Board and the FPA will be supporting it by publishing new articles on its Money & Life website, sharing insights from its recent Live the Dream 2017 research report and joining in on the global social media conversation.
Financial Literacy needs to start at school. We were never taught basic financial concepts as youth and the results speak for themselves. Even the above article states that around 20% of 15 year olds lack basic financial literacy.
For what it’s worth, one suggestion is for a new subject to be introduced in high school. The subject would cover all financial basics and include – how to manage a mobile phone (covering all aspects of choosing appropriate phone plans, how they work, the costs, etc); what is involved in purchasing a motor vehicle (upfront and all running costs); what is involved in purchasing a home (all upfront and ongoing costs, the roles of a real estate agent, etc); the importance of general insurance; the importance of life insurance; superannuation and other investments; what is involved in borrowing money; all aspects of owning credit cards (fees, interest, how interest free periods actually work); and one of the most important – being able to budget properly to ensure that they can live within their means! Basically all aspects of financial management. The end result is for a student to leave school with some understanding of what they will encounter in the real world and by getting into the habit of budgeting before they leave school, then they will be a good starting position of being to manage money when they start working. What a different world we would live in!
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