In celebration of this year’s World Financial Planning Day, financial literacy and capability will get renewed focus across the country to reverse falling standards, according to the Financial Planning Association (FPA).
FPA chief executive, Dante De Gori said although Australia ranked ninth in the world for financial literacy, money management skills needed to be taught at a younger age to ensure financial wellbeing through adulthood.
“Financial literacy is an everyday life skill that allows people to better understand their finances and to appropriately manage their financial outlook,” he said.
“It enables us to make sound financial decisions, based on personal circumstances, to improve our financial wellbeing.
The FPA said it would show support for World Financial Planning Day by engaging with global social media conversation on industry issues, publishing articles on the Money & Life website, as well as sharing recent report insights.
At the same time, De Gori has also announced a partnership with New Zealand-founded provider of interactive learning tools, Banqer.
“The program’s aim is to give children a foundation in the skills they’ll need to make the right financial decisions later in life,” De Gori said.
“That is why it’s important for financial literacy to be taught in our schools at an early age.”
Speaking to Money Management on financial literacy and wellness last year, Banqer co-founder and chief executive, Kendall Flutey said the continued need to focus on capability was vital.
“The current default financial education provider is often parents. When parents are incapable or unwilling to teach these life skills, the system collapses for that child,” she said.
“There is not enough action when it comes to initiating or mandating a proven solution.”