By lotas90411@bauscn.com 
Why Aussie Kids Need Financial Smarts Early
Financial literacy is more than just understanding dollars and cents—it’s about giving young Aussies the tools they need to navigate life with confidence. Whether it’s knowing how to save for their first car, understanding the fine print on a phone contract, or simply managing a budget, teaching kids how to handle money is a no-brainer. But here’s the kicker: many students are graduating high school without a clue about real-world money matters.
According to a 2022 article in the Financial Review, financial literacy in Australia took a hit between 2016 and 2020. The Household, Income and Labour Dynamics in Australia (HILDA) survey, which gathered responses from over 17,000 households, found a notable drop in money know-how across all age groups.
Here’s a snapshot of the slide:
| Age Group | 2016 Avg Score (out of 5) | 2020 Avg Score (out of 5) |
|---|---|---|
| 15-24 | 3.4 | 2.9 |
| 25-34 | 3.9 | 3.6 |
| 45-64 | 4.2 combined | 4.1 |
Even men, who scored higher on average, saw a drop from 4.1 to 4.0. Women’s scores dropped from 3.7 to 3.5. And get this: Roger Wilkins, deputy director of HILDA, reckons this dip lines up with a sharp fall in high school economics enrolments—Year 12 Economics saw a dramatic 70% plunge in just three years leading up to 2020.
Making the Case for Financial Education in Australia
It’s clear we’ve got a problem—and an opportunity. The modern financial landscape is getting more complex by the day. Kids are exposed to buy-now-pay-later schemes, social media-driven shopping, crypto talk, and a cashless society that makes money feel less real than ever. That’s why financial education Australia needs to step up and evolve just as quickly. If we don’t help kids navigate this new world with real-world money skills, they’ll be left guessing—and possibly paying for those guesses down the track.
That’s where financial education in Australia needs to step in.
By teaching financial literacy in schools, we help students build healthy habits early. It’s not just about balancing a budget—it’s about learning how to set goals, delay gratification, weigh up risks, and make choices that set them up for long-term success. We’re talking saving for a home, avoiding credit traps, planning for retirement—even if that seems a mile away when you’re 15.
How to Make It Stick: Integrating Financial Ed into the Curriculum
The good news? We don’t need to start from scratch. The Australian Curriculum already includes financial literacy elements across a few subjects like Maths, Humanities and Social Sciences, and Economics and Business.
But it needs to go further.
We should be tailoring content to suit different age groups and learning stages. In primary school, kids can start with basic needs vs wants, pocket money planning, and simple savings. By high school, they should be tackling topics like budgeting, investing, taxes, superannuation, and even the financial side of running a business.
Here are a few ways schools can bring financial literacy to life:
- Maths classes: Teach budgeting, interest calculations, loan repayments, and investment returns.
- Humanities: Explore economic systems, trade-offs, and consumer rights.
- Business Studies: Dig into real-world case studies, business budgeting, and entrepreneurship.
Essential Financial Concepts for Aussie Students
So what exactly should we be teaching kids?
Budgeting and Money Management
This one’s non-negotiable. Students need to learn how to plan their income (even if it’s just a part-time wage or pocket money), manage spending, and track expenses. Tools like digital budgeting apps or old-school spreadsheets can help them stay on track.
Saving and Investing Early
Teaching students to save regularly and set short- and long-term goals builds discipline. Whether it’s saving for a PS5 or a first car, it creates habits they’ll carry into adulthood. Introduce concepts like compound interest, term deposits, and even the basics of investing in shares.
Credit, Debt and Borrowing Wisely
Let’s face it—credit cards, Afterpay, and loans are everywhere. Students need to understand how credit works, how interest can compound against you, and how important it is to maintain a good credit score. Teaching the difference between good debt (like a home loan or HECS) and bad debt (like high-interest credit cards) is key.
Banking Basics and Financial Institutions
Young Aussies should know how to open a bank account, read a bank statement, and use online banking safely. Understanding the roles of banks, credit unions, and financial regulators like ASIC also gives them a solid grounding.
Practical Strategies for Teaching Financial Literacy
Active Learning All the Way
Forget boring lectures. Kids learn best when they’re engaged. Use games, budgeting simulations, real-life scenarios, and role-plays to get them thinking. Try running a classroom activity where students plan a school event within a fixed budget.
Embracing Technology
There are stacks of online tools and apps designed to teach financial literacy. MoneySmart’s teaching resources are a ripper. Budgeting apps, interactive games, and even financial podcasts or TikTok explainers (yep, they exist) make money stuff more relatable.
Local Experts and Real-World Mentors
Get guest speakers in—bankers, accountants, small business owners, even entrepreneurs. These folks bring real-world context that textbooks just can’t offer. It’s also a great way to introduce students to small business consulting services and potential future careers.
The Role of Parents in Financial Education
School’s not the only place kids learn about money. What happens at home matters just as much.
Talking Dollars at the Dinner Table
Encourage parents to have honest convos with their kids about money. From weekly grocery budgets to bill comparisons, these chats make money feel real and manageable.
Shared Goals and Household Budgets
Get the whole family involved. Whether it’s saving for a holiday or planning a birthday party, involving kids in budgeting builds their confidence and awareness.
Tools for Parents
Schools can help by providing parents with simple guides, conversation starters, and activity sheets. Apps like Spriggy and ZAAP even offer child-friendly digital money management tools.
Looking Ahead: Why It All Matters
The stakes are high. Without solid financial literacy, young Aussies risk falling into cycles of debt, missed opportunities, and poor planning. With the right foundation, they can build wealth, make smart choices, and contribute to a stronger economy.
Plus, as financial products and systems evolve, it’s more important than ever to prepare students to adapt. Whether it’s managing cryptocurrency, understanding superannuation, or planning for retirement, financial literacy is a lifelong journey that starts young.