Bank ban to be introduced in Victorians schools

Money programs run by banks will be banned from all Victorian schools — and that’s not the only shake up that’ll be introduced.

Banks will be banned from delivering state school finance programs next year amid fears they are being using as a soft marketing tool.

But schools will be required to provide their own courses in financial literacy to ensure young Victorians better understand how to handle money and budgets.

Education Minister James Merlino will announce the bank ban today, and told the Sunday Herald Sun children deserve quality advice that is “free from commercial interests”.

The move comes amid complaints that some bank-run courses were trying to lure students to their brands with prizes and incentives for loyalty at very young ages.

Reservoir East Primary School principal James Cumming said his school community had decided to offer their own program years ago, despite efforts by the Commonwealth Bank to spruik its Dollarmites scheme.
He said the school’s offering was based on Victorian teacher Rob Vingerhoets’s “earn and learn” program where an economic community is set up within the classroom. Children are then taught about tax, rent, banking, buying and employment.

“We are not in the business of marketing to kids,” he said.

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The new ban hopes to free kids from the “commercial interests” of banks.

“We have a health education program without having to sign kids up to gyms. Schools play a role in helping kids learn a variety of things in their life but the decisions about consuming brands and products need to come from home.”

Reports that credit cards were being promoted to primary school-aged children helped trigger a review of the role of banking and financial institutions in schools, while concerns were also raised that children signing up to banking schemes were ripped off with low interest rates.

Mr Merlino said new teaching resources would be provided to help schools develop their own programs, along with practical information such as tax tips and how to avoid scams.

“Victorian students deserve high quality financial literacy, free from commercial interests – that’s why we’re banning financial institutions from delivering school banking programs,” Mr Merlino said.

“The Victorian curriculum sets our expectations for financial literacy and that must be our focus. As we build back in 2021 its time to draw a line under this issue.”

Financial literacy is currently taught from early primary school to Year 10 in subjects such as maths, economics and business studies.

The bank ban will be in place from Term 1 next year.

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