Many factors influence individual behaviours, attitudes to money and financial decision making. These can include personal health, income, employment, family background and social support structures.
Financial capability is being able to talk about money, to make informed decisions about money and to feel financially secure.
Learn more about financial capability here
Ecstra Foundation is one of many organisations working on addressing financial capability and wellbeing through the National Financial Capability Strategy. The strategy promotes lifelong learning to assist Australians to develop and enhance their financial capability throughout their lives. The updated National Financial Capability Strategy will be launched by the Australian Government in 2022.
Ecstra wants to ensure that more Australians have access to effective financial education, guidance and help at the times they need it. Learning about money is a lifelong journey. We know that by the age of seven, children have started to develop behaviours that impact their long term money habits1. The financial education that young Australians receive in schools can influence their future money attitudes, habits and behaviours.
Australian students’ performance on the international PISA financial literacy test has not substantially improved since 2015 2, Across all PISA participating countries, there is a strong link between socio-economic status and financial literacy3. With 16% of Australian students not reaching the key financial literacy milestones set by PISA, there is a need for greater access to effective financial education in schools. Australian school students are among the highest consumers of basic financial products in the OECD4. The changing nature of banking and housing affordability and economic effects of COVID are likely to continue to pose future challenges for young people.
Financial education is a mandatory component of the school curriculum in Australia, reflected in the National Consumer and Financial Literacy Framework.5 There is substantial flexibility in the curriculum on content design and delivery.
1. https://mascdn.azureedge.net/cms/the-money-advice-service-habit-formation-and-learning-in-youngchildren-may2013.pdf
2. https://research.acer.edu.au/cgi/viewcontent.cgi?article=1049&context=ozpisa
3. https://www.oecd.org/pisa/publications/PISA2018_VolIV_AUScountrynote.pdf
4. https://www.oecd.org/pisa/publications/PISA2018_VolIV_AUScountrynote.pdf
5. https://www.australiancurriculum.edu.au/resources/curriculum-connections/portfolios/consumer-and-financial-literacy/
