Australia above average in financial literacy test
AUSTRALIA recently performed above the OECD average in an international assessment of young people’s financial literacy, ranking equal fifth out of the 15 participating countries and economies.
Released by the OECD as part of its Program for International Student Assessment (PISA), the study evaluated the financial literacy of 15 year olds from 15 countries, and their ability to understand and apply their knowledge to financial questions.
ASIC deputy chair Peter Kell noted that while Australia performed well, there is still work to be done.
“We welcome these results, which show that Australian students’ average financial literacy ability compares well to the other countries that participated in the assessment.
“Encouragingly, 15 per cent of Australian students were high performers (above the OECD average of 12 per cent)’,” said Mr Kell.
“That said, 20 per cent of Australian students were low performers.
“While this is better than the OECD average of 22 per cent, it indicates that there is more to be done in Australia to build financial literacy and capability at all levels of education.
“In an increasingly cashless society, it’s more important than ever that Australian students have the capacity to budget and manage their money through key life transitions such as their first job, starting university and moving out of home.”
Mr Kell also pointed to the important role that ASIC’s Money Smart Teaching Program has to play.
ASIC’s MoneySmart Teaching Program is the Australian Government’s national financial education program working across the formal education sector to support the development of greater financial capabilities in young Australians, in partnership with state and territory education departments.
ASIC’s MoneySmart Teaching resources are available online at moneysmart.gov.au.