Elections highlight the need for financial literacy

The federal election reaffirms the need to teach financial literacy in schools, according to Connect Financial Service Brokers, because better financial literacy would lead to more informed voters.

Connect Financial Service Brokers managing director Paul Tynan said making financial literacy mandatory in school would go a long way to helping future generations make more informed decisions about their long-term personal and professional interests.

“With most commitments made by politicians in elections, it has become imperative to understand their impact on the broader economy as well as on individuals, their families – and business owners and their employees,” said he declared.

“Financial literacy is an essential skill for successfully participating in today’s increasingly complex society. So why should young Australians be forced to catch up with the increasingly complex world of finance and money after leaving school? »

As for overseas models, he said the United States is seeing a growing trend of more states mandating financial literacy education, with 54 financial education bills personal pending in 26 states.

“Now 11 states, including Florida, require students to take a stand-alone personal finance course to graduate and more than 20 other states include some kind of personal finance education in their curriculum in different ways.

“Unfortunately, while the benefits of financial education can make a huge difference in empowering and equipping Australians – especially young people – the government and education system are collectively dragging their feet.”

Tynan said financial literacy should be present throughout the high school curriculum and embedded in a framework that allows students to gradually develop and expand their knowledge.

“Just as learning a new language or skill takes time, acquiring financial skills takes time and years to gradually build the knowledge, familiarity and confidence to manage one’s own finances. leaving school and entering adulthood.”