Australia’s Financial Literacy Strategy “Not Active” – Research Reveals

The latest research commissioned by the Ecstra Foundation has uncovered a concerning reality – Australia’s financial literacy strategy is not as active as it should be. The report, conducted by Social Ventures Australia, revealed that Australia’s National Financial Capability Strategy 2022 is currently inactive and lacks clear definition compared to other OECD countries.

According to the findings, Australia’s financial literacy levels have declined across all age groups, with young adults aged 15 to 24 being the most affected. The research also highlighted an increase in households experiencing financial stress, with a significant number struggling to raise funds when needed.

Caroline Stewart, CEO of Ecstra, expressed her concerns about the lack of progress in improving financial literacy levels in Australia, especially among the younger population. She emphasized the need for government leadership in setting clear goals and sustainable funding for financial education initiatives.

The research also outlined five key recommendations for Australia to enhance its financial literacy efforts, including recommitting to a national strategy, mapping stakeholders and initiatives, and ensuring quality financial education in schools.

One notable opportunity highlighted in the report is the implementation of mandatory financial literacy courses in schools, following the example of countries like the United States and New Zealand. This approach aims to improve financial literacy among students and address the decline in Australia’s PISA results in financial literacy.

Stewart urged the government to take action and lead a national financial capability action plan to elevate the importance of financial education and improve the overall financial well-being of Australians. With various stakeholders already working on financial capability initiatives, there is a strong foundation for a renewed approach to building financial literacy in the country.