There is a global call from businesses, politicians, and educators to promote financial literacy instruction in schools, especially in light of the current economic climate. Financial literacy is important because it helps students learn how to manage their money and avoid falling into debt, a lower socio-economic class, or other financial problems. By incorporating financial literacy into the curriculum, educators can teach students the importance of maintain their finances before they are out of school and unprepared to handle their money and investments on their own.
In Australia, business and government leaders have made a strong push to promote fiscal responsibility among its citizens, with several programs and resources aimed at students. In 2005 the Ministerial Council for Education, Early Childhood Development and Youth Development (MCEECDYD) released the National Consumer and Financial Literacy Framework (PDF), a framework for incorporating financial literacy goals into the school curriculum.
The National Financial Literacy Strategy was launched in 2011 by the Australian government and the Australian Securities and Investments Commission (ASIC), the regulator of Australian financial markets, to provide education and support to improve the financial well-being of its citizens. There is also the MoneySmart Teaching program that offers resources for educators who are trying to promote financial literacy in their classrooms.
Financial Literacy Framework
The National Consumer and Financial Literacy Framework offers a rationale for why financial literacy is vital for Australian society. The framework was revised by ASIC and other financial and education groups in 2011 to reflect changing technologies, and the Australian Curriculum was developed to promote financial literacy in the Australian education system from early education to year 10.
The framework notes that financial decisions are often complex; without the proper education, people will make poor decisions that can lead them to debt and other financial problems. Therefore, students should be taught fiscal responsibility from a young age so they can contribute to Australia's economy and be financially stable in adulthood.
The framework cites a study that people over the age of 70 and people ages 18–24 have the most problems when it comes to their finances, so the framework aims to give students the confidence and knowledge to handle money management from the very basic (daily transactions) to the advanced (investing), and to create "individuals who are consumer and financially literate [so they will] have the ability to apply knowledge, understanding, skills and values in consumer and financial contexts to make informed and effective decisions that have a positive impact on themselves, their families, the broader community and the environment."
ASIC's National Financial Literacy Strategy offers ideas, tools, and resources to promote fiscal knowledge through education and other means. It also promotes partnerships that can help schools achieve these goals. ASIC says embedding financial literacy into the Australian Curriculum is one of the top ways to improve the nation's financial security.
Making MoneySmart Students
One of the resources the National Financial Literacy Strategy promotes is the development of MoneySmart website, which offers a variety of resources to educators on how to incorporate financial literacy. The MoneySmart and MoneySmart Teaching (a more education-centric site) tools include a three-part learning module for educators on how to teach financial literacy, research on the topic, and videos outlining why this subject is important.
