The Quiet Crisis in Financial Literacy: Why Australia’s Kids Are Falling Behind

As I sat through the recent Parliamentary Friends of Financial Capability event at Parliament House, surrounded by lawmakers and experts from both sides of the aisle, a pressing issue became clear: Australia’s lack of a national financial literacy strategy is a ticking time bomb waiting to explode. This systemic failure threatens the very fabric of our economy and society.

Eight million five hundred thousand Australian adults – nearly half of us – lack basic financial literacy. We’ve allowed ourselves to fall behind countries like New Zealand, Ireland, Finland, and some US states that have made financial education a mandatory part of their school curricula.

Inadequate money education can cause significant harm. A recent Deloitte report found that it can result in a staggering $123,000 detriment in a person’s life, not to mention the lost benefits. Financial literacy is also linked to GDP per person; a study comparing data from 143 countries demonstrated a strong positive association between the two – one that Australia is neglecting.

The connection between financial and mental health is particularly alarming. Research has shown that financial stress can exacerbate mental health issues, and vice versa. This isn’t just about personal finance; it’s about relationships, families, and community wellbeing. Yet we’re still allowing our kids to graduate from school without basic money smarts.

Policymakers are failing to act on this pressing issue. Perhaps they’re waiting for someone else to take the lead or genuinely believe that financial literacy is not a national priority. I’d argue that nothing could be further from the truth.

This isn’t just about numbers and statistics; it’s about the future of our country. We owe it to ourselves, our children, and our grandchildren to get this right. A revised national curriculum with mandatory money lessons – practical, relatable, and real-life ones – is long overdue. This requires fundamentally changing the way we approach personal finance.

We need a comprehensive national financial capability strategy that brings together experts from across government, industry, and civil society. We require funding, but also bipartisan support – precisely what was demonstrated at Parliament House last week. It’s time to stop making excuses and start taking action.

To our Prime Minister, I say: lead the charge. Get the states and territories to agree on a revised national curriculum that puts money lessons front and centre. And for goodness’ sake, re-engage ASIC to steer this effort – because it’s clear that Treasury has failed to deliver.

We can’t afford to wait any longer. Our kids are counting on us. Let’s get to work and show the world what we’re made of: a country that values financial literacy as much as we value our great outdoors, sports teams, or cultural institutions.

The stakes are high, but so is the reward. By prioritizing financial education, we can create a more prosperous, equitable, and resilient society – one that truly lives up to Australia’s promise.