New research pushes calls for standalone financial literacy courses in secondary schools

Research commissioned by Suncorp Bank in partnership with independent charity Financial Basics Foundation and conducted by Griffith University has highlighted six key recommendations, including that financial literacy should be a standalone course in secondary schools.

The study aimed to understand why young women have lower levels of financial literacy than young men and the report’s authors, Dr Laura de Zwaan and Dr Tracey West said that while many other studies found females outperform males overall in high school and outnumber them in university, “there remains consistent evidence that women, and in particular young women, have lower financial literacy levels than men”.

While some students involved in the study were aware of financial concepts such as investing, insurance and superannuation, most had “little or no knowledge and/or understanding” of how they translate to personal finance.

Dr de Zwaan and Dr West also recommended that students need more exposure to effective financial strategies, that the delivery of financial literacy education in math must be improved and that learning activities should be aligned with the general level of financial experience of the students.

Suncorp CEO Clive van Horen backed the recommendations of the report and calls for a standalone financial literacy course in secondary schools.

“A standalone course based on managing personal finances not only helps teach young Australians how to make good financial decisions, but it supports their financial and mental wellbeing, knowing they are working towards a financially secure future," Mr van Horen said.

Late last year, Lifespan Financial Planning CEO Eugene Ardino called on the government to launch a campaign aimed at raising financial literacy awareness for younger people.

“Try to have more of that within schooling perhaps, so that when people get out there and they have to make financial decisions and have to engage people to help them to do that, they’re doing it with a bit more awareness,” Mr Ardino said on an episode of the ifa Show.

“There’s nothing better than dealing with a client who understands what you’re talking about.”

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.