Teens’ fail to grasp basic financial literacy
A huge number of Aussie teens can’t comprehend basic financial concepts, particularly when it comes to understanding credit card payments and day-to-day budgeting.
Education
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More than three quarters of Australian teenagers can’t identify how long it would take to pay off credit card debt and two thirds don’t understand when budgets are in deficit, according to a financial literacy challenge in schools.
More than 7500 teenagers across Australia, including 1909 Queensland students, participated in Suncorp’s 2020 Earning Spending Saving Investing (ESSI) Money Challenge, and there were alarming results.
Queensland students are falling behind those in NSW and the ACT when it comes to financial literacy, ranking third nationally in the ESSI challenge.
“The challenge revealed that a surprising number of Queensland teenagers are struggling to understand basic financial concepts, particularly in the areas of credit, superannuation, loans and GST,” a Suncorp statement said. The challenge tested students’ financial literacy, revealing that many struggle to understand basic money scenarios.
Financial Basics Foundation chief executive Katrina Birch said financial literacy is included in the national curriculum, “however it is optional and not particularly comprehensive”.
Ms Birch said the foundation believed it should be a stand-alone course.
“Queensland’s financial literacy levels are not improving and we need to take action. Not understanding the importance of good spending habits, saving, budgeting and investing can leave young people vulnerable in tough economic times.”
Allison Bennett, a former accountant who is now a maths and drama teacher at the Music Industry College said she encouraged students to sign up to the challenge.
“Students pick up a lot because it’s very real-life related, they enjoy it because it’s more like a game rather than a class,” Ms Bennett said.
“(Schools are) getting better and better (at educating financial literacy, but) a lot of kids struggle with maths so that undermines their confidence.
“A lot of adults struggle with financial literacy so they’re not necessarily passing that on to their kids.”