Financial literacy is more than just understanding dollars and cents—it’s a crucial life skill that empowers people to make smart financial decisions, avoid debt traps, and build long-term security. Yet, despite its importance, many young Australians leave school without the basic money skills they need to navigate adulthood.

Recent data paints a worrying picture. According to a 2022 Financial Review report, Australians’ financial literacy has declined over the past decade. The Household, Income and Labour Dynamics in Australia (HILDA) Survey tracked financial knowledge across 17,000 households between 2016 and 2020, asking five key questions to assess money smarts. The results were concerning:

Financial Literacy Scores in Australia (2016 vs. 2020)

The study also found:

• Men’s average scores dropped from 4.1 to 4.0

• Women’s average scores fell from 3.7 to 3.5

Roger Wilkins, deputy director of the HILDA survey, linked this decline to a 70% drop in Year 12 Economics enrolments over three years leading up to 2020—a trend the Reserve Bank of Australia (RBA) called “dramatic.”

With financial products becoming more complex—from Buy Now, Pay Later (BNPL) schemes to cryptocurrency investments—young Australians are at risk of making costly mistakes without proper education. As Financial Education Australia becomes increasingly critical in our digital economy, the question remains: should financial literacy be a core subject in schools? Let's break it down.

Why Financial Education Belongs in Aussie Classrooms

1. The Changing Financial Landscape

Gone are the days when money management just meant balancing a chequebook. Today’s teens face:

• Digital payments (Apple Pay, PayPal, crypto)

• Afterpay and credit temptations

• Rising cost of living & housing affordability crises

• Superannuation and long-term investing

Without early education, many fall into debt cycles, struggle with poor credit scores, or miss out on wealth-building opportunities.

2. Building Lifelong Money Habits

Research shows that financial habits form by age 7. Teaching kids early helps them:

• Budget (distinguish needs vs. wants)

• Save (emergency funds, big purchases)

• Invest (compound interest, shares, property)

• Avoid scams & predatory lending

Schools can reinforce these skills before bad habits take root.

3. Existing Support in Australia

Thankfully, we’re not starting from scratch. Key resources include:

• ASIC’s MoneySmart Teaching Program – Free lesson plans for teachers

• The Australian Curriculum – Financial literacy in Maths, Business, and HASS

• School banking programs (though some have faced criticism)

But is this enough? Many argue financial literacy should be a dedicated subject, not just a side topic in Maths.

How to Integrate Financial Literacy into Schools

1. Start Early & Build Gradually

• Primary School: Teach basics like saving, spending wisely, and how money works.

• High School: Cover budgeting, taxes, superannuation, and investing.

• Senior Years: Dive into loans, mortgages, and financial planning.

2. Make It Practical & Engaging

• Real-world simulations – Mock stock market games, budgeting challenges

• Guest speakers – Bankers, financial planners, entrepreneurs

• Digital tools – Apps like MoneySmart’s TrackMySpend, investment simulators

3. Cross-Curricular Learning

Financial concepts fit into multiple subjects:

• Maths – Interest rates, loan repayments

• Business/Economics – Markets, consumer rights

• HASS – Economic policies, inequality

4. Get Parents Involved

Many adults also lack financial confidence. Schools can help by:

• Hosting family money workshops

• Sharing at-home activities (e.g., grocery budget challenges)

• Encouraging open money conversations

Key Financial Concepts Every Aussie Student Should Learn

? Budgeting & Money Management

• How to track income vs. expenses

• Setting SMART financial goals (short-term and long-term)

• Understanding needs vs. wants

? Saving & Investing

• The power of compound interest

• Different savings accounts (term deposits, high-interest savings)

• Basics of shares, ETFs, and superannuation

? Credit, Debt & Responsible Borrowing

• How credit scores work

• Dangers of payday loans & BNPL schemes

• Smart ways to use credit cards & personal loans

? Banking & Financial Institutions

• How to open and manage a bank account

• Understanding fees, interest, and fraud protection

• Role of the RBA, ASIC, and APRA

The Future of Financial Education in Australia

While progress is being made, there’s still a long way to go. Some key steps include:
✅ Making financial literacy a standalone subject (not just part of Maths)
✅ Teacher training & resources (many educators lack confidence in teaching finance)
✅ Government & industry partnerships (banks, fintechs, and nonprofits)

Countries like Estonia and Canada have already embedded financial literacy into national curriculums—why shouldn’t Australia?

Final Thoughts: Time for a Money-Smart Generation

Financial literacy isn’t just about avoiding debt—it’s about building opportunities. Whether it’s buying a first home, starting a business, or retiring comfortably, early education sets young Aussies up for success.