Aus­tralia above av­er­age in fi­nan­cial lit­er­acy test

Wangaratta Chronicle - North East Regional Extra - - News -

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.

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