Financial literacy is a vital life skill that affects every Australian. It helps people understand how to save, budget, invest, and manage debt. These are essential for making confident, informed financial decisions. When people know how to handle money well, they’re better equipped to plan and build lasting financial security. Yet, research suggests that around 45% of Australians are financially illiterate.*
The impact of low financial literacy isn’t just personal, but also economic. Poor money management, high levels of debt, and limited understanding of investments and superannuation cost the Australian economy billions of dollars each year. Lost productivity, increased reliance on social services, and poor financial decisions affect households and businesses alike.
One factor contributing to this issue could be the lack of consistent financial education in Australian schools.
New Zealand has announced that from 2026, financial education will become a core part of its national curriculum, taught within the social sciences from Year 1 to Year 10.**
For younger children, lessons will focus on the basics like understanding money, opening a bank account, and learning how to save and spend wisely. Older students will explore more advanced topics such as budgeting, taxes, investing, and interest, helping them prepare for real-world financial decisions before they leave school.
The goal is to ensure that every student develops a strong foundation in financial literacy, giving them the tools to navigate a world where managing money has become more complex due to rising costs of living, online transactions, and easy access to credit.
Other countries, including the United Kingdom, Canada, and Singapore, have also introduced structured financial education programs, recognising the long-term benefits of teaching money management early.
Currently, financial education isn’t part of the mandatory Australian curriculum. Elements of it appear within existing subjects like mathematics, humanities, and technologies, but there’s no consistent national framework. As a result, what students learn – and how deeply they learn it – can vary significantly between schools, states, and territories.
Without structured teaching, most young Australians pick up their understanding of money from parents or peers. While that can work well in some households, it can also reinforce unhelpful habits or leave gaps in knowledge, depending on the financial experience of those doing the teaching.
Australia could benefit from taking a similar approach to New Zealand’s by introducing financial literacy as a dedicated and compulsory subject. Doing so could help close knowledge gaps, reduce financial stress, and give all young Australians the confidence to manage their finances effectively.
By helping young people build strong money skills early, we can create a culture of financial wellbeing that benefits individuals, families, communities and future generations.
* 2020 Household, Income and Labour Dynamics in Australia (HILDA) Survey
** Yahoo Finance, ‘Australia urged to follow New Zealand in school initiative to address $30 billion issue’
