Learning early in life how to manage money, save and plan for the future and make informed decisions, enables young people to be in control of their financial lives.
Australian youth are active consumers – they set savings goals, shop online, use debit cards and make payments with their phones. They also deal with complex financial decisions around further education, employment, entering into relationships and preparing to move out of home.
PISA Financial Literacy assessment
Last week, the OECD released the 2018 Programme for International Student Assessment (PISA) Financial Literacy assessment results. This triennial international survey evaluates the financial literacy of 15-year olds. PISA measures the cumulative outcomes of education by assessing how well 15-year olds (Year 10 students) are prepared to use their knowledge and skills in particular areas to meet real-life opportunities and challenges. Internationally around 117,000 students participated (representing about 13.5 million 15-year-old students), including around 9,411 Australians.
How Australia performed
Australian students performed above the OECD average and ranked fifth out of the 20 participating countries. While these results are positive, it is more important than ever that young Australians have the skills to manage money and plan for the future. Interestingly there was a statistically significant drop in the results of Australian students since the 2012 assessment, with the mean literacy score dropping 15 points.
Financial education is embedded in the Australian Curriculum and our youth are learning about money at school. While schools continue to play a meaningful role in delivering financial education, lessons young Australians learn outside of the school environment are even more important in shaping the behaviours that contribute to their financial wellbeing.
As leaders in delivering online financial education solutions since first partnering with ASIC in 2004, here at Money101 we understand the importance of increasing Australian’s financial literacy, to enable better financial decisions and increased financial wellbeing.
Money101 have been delivering product-free, jargon-free online financial education since 2004. Our Financial Wellbeing program is designed to empower Australians to make better financial decisions, a workplace solution delivered online, anytime on any device.