Money skills will be woven into school curricula across Australia in a major triumph by the Financial Literacy Foundation.
Starting next year, financial literacy will be rolled into the English and mathematics syllabus of children in years three, five, seven and nine. It will be included in school exams.
The nation’s 60,000 teachers will receive training and resources funded by the government.
“[Financial literacy] isn’t just a nice idea. It’s actually sitting in the curriculum as a key statement of learning,” advisory board chairman Paul Clitheroe told delegates at last week’s Association of Financial Services Educators conference.
“Unless we give our citizens a basic level of knowledge . to function effectively in this world, this society will struggle.”
Clitheroe, a former FPA chairman, has battled for 13 years to have financial literacy taught in schools.
He believes the nation is cleverer with money, but the complexity of credit cards, mobile phone debt and hire purchase agreements for example, outsmarts people.
“Financial illiteracy applies as equally to politicians, doctors, lawyers and accountants. You often find the most literate people at a fundamental level are the people on government benefits,” Clitheroe said.
“Why? Because for many of us, budgeting is something we say we’ll get round to one day. For many of these Australians on low incomes it’s: ‘how will we eat on Friday?'”
School-based learning will be leveraged by financial literacy education for adults.
Following a $13 million advertising campaign launched in July last year, more than 700,000 people requested the ‘Understanding Money’ booklet.
The benchmark for financial literacy is basically the capacity to function in society, for example, being able to pay bills and having money for an emergency, Clitheroe said.
Financial Literacy Foundation advisory board is made up of financial services luminaries.
They include Vanguard Investments Australia managing director Jeremy Duffield, AMP Financial Services managing director Craig Dunn, The Smith Family chief executive officer Elaine Henry, Australia and New Zealand Banking Group chief executive officer John McFarlane.
