The Importance of Teaching Financial Literacy to Youth
The Importance of Teaching Financial Literacy to Youth
"Being kids, they threw out the most imaginative answer, which I've never heard before," Thomas tells Professional Planner. "They said babies."
While technically not incorrect, the correct answer is women.
"I explained that women retire with half the amount of superannuation that men do," Thomas says. "They were shocked and I asked them if they thought that was fair. They replied with a resounding 'No!'"
This presentation by Thomas and Horizon Group of Companies financial advisers Remo Venditti is part of a program aimed at teaching high school students about budgeting, financial goals, compounding, investing, and superannuation.
Addressing the Financial Literacy Gap
The Financial Advisers Association of Australia (FAAA) recognizes the importance of educating young people about financial literacy, according to FAAA general manager Anne Palmer.
"Teaching financial literacy to young people is incredibly important," says Palmer. "It sets them up for success in the future, not just financially but in every aspect of life. The foundation of any financial plan is understanding cash flow and budgeting."
Thomas agrees, emphasizing that even children can benefit from understanding their cash flow and budget. Starting the practice of saving for things instead of relying on debt at an early age is key.
"If they understand the benefits of long-term investing, it's really the world's their oyster," Thomas says. "Young people right now can give themselves a good start by equipping themselves with the tools to save and invest wisely."
The Talk Money Program
In response to the decline in youth financial literacy, Ecstra launched the Talk Money program in 2022, aimed at teaching children about financial literacy. Since its inception, the program has reached over 230,000 students through workshops conducted in schools across Australia.
Roadshows make up 17% of Talk Money bookings, allowing for concentrated time in regional areas across the country. While online workshops are available, the organization prefers face-to-face interactions for better student engagement.
About 24% of bookings in 2023 were repeat bookings, indicating the value that schools see in financial literacy education. External facilitators like Ecstra provide teachers with the confidence to have conversations about money in the classroom.
Ecstra is actively reviewing and improving the Talk Money program based on feedback received from schools and students, showing their commitment to evolving and meeting the needs of young learners.
Emphasizing Financial Literacy as a Life Skill
Anne Palmer and Tracey West, manager of the Ecstra Foundation, both believe that teaching financial literacy is a crucial life skill.
"It's one of the most important subjects young people will ever learn," says Palmer. "It sets them up for success not just financially, but also in all aspects of life."
West adds, "Financial literacy is a key skill that empowers individuals to make informed decisions about their finances and future."
By teaching young people about budgeting, saving, and investing, we equip them with the knowledge and tools to build a more secure and prosperous future.
Published:Friday, 17th Nov 2023
Source: financialservicesonline.com.au
Share this news item:
| Labor's Help to Buy Scheme: Addressing Symptoms, Not Causes of Housing Affordability 08 Dec 2023: .financialservicesonline.com.au The Australian Housing Urban Research Institute (AHURI) raised concerns in a report last year suggesting that the $20 billion spent by governments over the past decade to assist first-time homebuyers had actually increased inequality and made housing less affordable. According to the report, these measures added to the demand and subsequently drove up house prices. - read more |
| Business Insurance Price Rises Showing Signs of Slowdown 05 Dec 2023: .financialservicesonline.com.au Rates across the majority of commercial lines are still experiencing increases, but the pace of the rise is starting to weaken, according to a recent webinar by actuarial firm Finity. The firm suggests that higher rate increases will be more targeted where necessary, while the majority of risks can expect more moderate rate adjustments in the upcoming financial year FY24. - read more |
| The New Era of Financial Advice: Transforming Client Experiences 05 Dec 2023: .financialservicesonline.com.au Advisers are no longer just financial experts, they are now at the forefront of providing transformative client experiences. This shift in the industry is predicted to bring about significant positive changes, according to professional VBP chief executive, David Carney. - read more |
| Where To Get A Debt Consolidation Loan When You Have Bad Credit If you find yourself struggling under the weight of multiple loans, credit cards and other personal debts it can be hard to know where to turn for help. Your lenders may simply be unwilling or unable to give you any wriggle-room. If you find yourself in this situation, then it might be worth exploring the option of online debt consolidation loans - read more
|
| 5 Credit Killers A good credit score speaks volumes about your financial habits. It's the evidence most creditors need to evaluate your credit worthiness. - read more
|
| Unlocking the Secret to Solving Public Transport: Why Your Workplace Location Matters The relationship between our workplace location and the availability of transportation options has a significant impact on our commuting choices. Inner-city and CBD workers enjoy an extensive range of options for public transport, walking and cycling, due to the proximity of their residences to their place of work. - read more
|