The Federal Government has renewed its commitment to greater financial literacy with the launch of the latest stage of its financial capability strategy.
The 2018 National Financial Capability Strategy follows on from the 2014-2017 National Financial Literacy Strategy, and will aim to help people improve their skills in managing money on a daily basis, making informed decisions about their finances and planning for the future.
The strategy was launched by the Minister for Revenue and Financial Services, Kelly O’Dwyer who said, “…the Strategy guides action across the government, business, community, education and research sectors to support enhanced financial capabilities in individuals, families and communities”.
ASIC will act as the leading Government agency in the strategy and will co-ordinate its activities with support from the Australian Government Financial Literacy Board.
Modelling commissioned by the regulator found that if financial capability levels for all Australians were lifted marginally above current levels, the present-day benefit of improved money behaviour over the next 30 years would be an increase to consumer wealth and consumption by $212 billion.
ASIC Chair, James Shipton said consumers were at the heart of the financial system and at the centre of the strategy and called on the financial sector to support consumers in building financial awareness.
“The financial sector as a financial community should be engaging in practices that promote fair consumer outcomes,” Shipton said.
“In particular, we need to continue to encourage women to be more confident with money, young people to find the information they need when they need it, and support Indigenous Australians to access appropriate financial products and services,” he added.
The launch of the strategy coincides with the release of research from the FPA which found that digital money and transactions were making it more difficult for children and teens under 18 to grasp the value of real money.
The FPA stated that this cohort of young people – dubbed the “Invisible-Money Generation” – often experienced money in online transactions, credit and debit cards, and ‘tap and go’.
According to the research, released by the FPA in its Share the Dream Report, two thirds of Australian parents believed digital money was making it harder for children to grasp the value of real money, and they struggled to teach them. At the same time, 62 per cent of parents believed the Invisible-Money Generation would be financially worse off than their own generation.
The research also found the Invisible-Money Generation were forcing a shift in national spending habits with 47 per cent of 14-18 year olds as likely to take an interest in online purchases as they are to spend physical money at a shop.
Shen maths and English are re I stated as cucil parts of the education program we may be able to better educate our kids
For some reason they were removed as not being an important facet of study
Why ?? It was made optional and the disaster of this has been unfolding for a long time
How many young people cannot add up or understand the change required in a simple cash transaction without the help of a cash register or calculator
I maybe missing something here but I don’t think so
Let’s get back to some basics
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