How advisers can foster financial literacy for the next generation

Dawn Thomas, a senior wealth adviser at The Wealth Designers, is championing youth engagement in financial planning while pursuing a PhD focused on Generation Z’s experience with superannuation.

Speaking on a recent episode of the ifa podcast, Thomas explained how her study, which she admits was initially inspired by other research interests, evolved into a mission to investigate why young Australians remain disengaged with superannuation despite its significance in their financial futures.

“I care deeply enough about our superannuation system, because I think it’s an amazing system, and I don’t understand why more people are not engaged. Okay, I take that back. I do understand why they’re not engaged, but I’m just like, why can’t you be engaged? You know, it’s been set up, but it’s a complex system,” she said.

Thomas explained that by targeting Gen Z, her goal is to shift attitudes towards superannuation early, offering insights that help young people take ownership of their financial futures.

“If they don’t make a choice, the employer picks a fund. Then what happens next? They’re super stapling, meaning that that fund will then follow them through all the rest of their jobs to avoid multiple funds. But effectively, the employer has chosen a fund for them, which may not be a bad thing, but they were not involved in any of the decision making through that process,” she said.

“They were not aware that a super fund needed to be created. They were not aware of what fund was picked for them and then the next thing that happens is that an investment option is also picked for them.

“So I’m just trying to make them be aware of the initial part where, have a bit of choice in the beginning and it goes a long way.”

But Dawn’s efforts extend beyond academia, as she leads Start Well, a financial literacy program designed to educate young Australians on the importance of long-term planning and financial responsibility.

“We know our clients are actually very financially well off. Right? I mean they’ve done the planning and they’ve done the work, so they’re fine financially. But what they’ve told us is that they are concerned that their kids are not getting that financial know-how or that financial street smarts with how to actually deal with money,” Thomas said.

“I mean, the parents kind of tell us how it’s been for the kids to attend it during the school holidays. A bit of a, you know, an investment of their time, and to hear their aspirations as well. So, it’s so impactful to be able to do that. It’s great we have the opportunity.”

Dawn also highlighted that while her PhD might not directly result in financial gains, it represents her deep commitment to the financial advice profession. By combining academic research with practical experience, she hopes to raise public awareness and increase trust in financial advice, ultimately helping younger Australians navigate their financial journeys.

To hear more from Thomas, tune in here.