Education

Schools urged to introduce financial literacy as standalone course…

...as traditional maths approach fails young Aussies, according to

<p class&equals;"x&lowbar;Default"><span lang&equals;"EN-AU">New research suggests the current approach to financial literacy in our schools may be failing teenage girls and recommends it be taught as a standalone course instead&period;<&sol;span><&sol;p>&NewLine;<p class&equals;"x&lowbar;Default"><span lang&equals;"EN-AU">Independent charity Financial Basics Foundation in partnership with Suncorp Bank commissioned the research by Griffith University to investigate why young women have lower levels of financial literacy than young men&period;<&sol;span><&sol;p>&NewLine;<p class&equals;"x&lowbar;Default"><span lang&equals;"EN-AU">The Financial Literacy of Young Australians <b><i>Report <&sol;i><&sol;b>by Dr Laura de Zwaan and Dr Tracey West which highlights six key recommendations for secondary schools to improve their financial education was released today&period;<&sol;span><&sol;p>&NewLine;<p class&equals;"x&lowbar;Default"><span lang&equals;"EN-AU">&OpenCurlyDoubleQuote;An extensive number of studies have found females outperform males overall in high school&comma; outnumber males in university&comma; and are higher qualified in the workforce&comma;” the report’s authors said&period;<&sol;span><&sol;p>&NewLine;<blockquote>&NewLine;<p class&equals;"x&lowbar;Default"><span lang&equals;"EN-AU">However&comma; there remains consistent evidence that women&comma; and in particular young women&comma; have lower financial literacy levels than men&period;”<&sol;span><&sol;p>&NewLine;<&sol;blockquote>&NewLine;<p class&equals;"x&lowbar;Default"><span lang&equals;"EN-AU">While some students were aware of financial concepts such as interest&comma; inflation&comma; investing&comma; insurance and superannuation&comma; most had little or no knowledge and&sol;or understanding of how they translate to personal finance&period;<&sol;span><&sol;p>&NewLine;<p class&equals;"x&lowbar;Default"><span lang&equals;"EN-AU">The research also found there were clear gender differences in confidence in financial knowledge&comma; with girls generally having less confidence than boys&period; Girls tend to take a more collective approach to finances&comma; where they consider others when making financial decisions&period;<&sol;span><&sol;p>&NewLine;<p class&equals;"x&lowbar;Default"><span lang&equals;"EN-AU">Despite the introduction of content and specific opportunities to develop financial literacy in two Australian curriculum learning areas &lpar;Mathematics and Economics and Business&rpar; in 2014&comma; the research revealed that many students&comma; especially girls&comma; found the maths-based approach to financial literacy was a barrier to learning these essential life skills&period;<&sol;span><&sol;p>&NewLine;<p class&equals;"x&lowbar;Default"><span lang&equals;"EN-AU">&OpenCurlyDoubleQuote;For many students&comma; maths is not the most effective curriculum area for learning about personal finance&comma;” the authors concluded&period;<&sol;span><&sol;p>&NewLine;<p class&equals;"x&lowbar;Default"><span lang&equals;"EN-AU">&OpenCurlyDoubleQuote;There is evidence that curriculum structure and delivery in mathematics often results in students fixating on formulas and calculations&comma; without understanding the underlying concepts&period; Many students are disengaged &lpar;resulting from a range of factors&rpar; with maths&period;”<&sol;span><&sol;p>&NewLine;<p class&equals;"x&lowbar;Default"><span lang&equals;"EN-AU">The research concluded that storytelling was likely to be a more effective way to learn about personal finance&comma; and context was critical for understanding financial concepts&period;<&sol;span><&sol;p>&NewLine;<p class&equals;"x&lowbar;Default"><span lang&equals;"EN-AU">&OpenCurlyDoubleQuote;It is important to match the learning activities with what the students are experiencing&comma; and to use real life scenarios&comma;” they said&period;<&sol;span><&sol;p>&NewLine;<p class&equals;"x&lowbar;Default"><span lang&equals;"EN-AU">&OpenCurlyDoubleQuote;Whatever students do learn about money and financial concepts&comma; occurs predominantly from home&comma; maths&comma; or business studies&period;”<&sol;span><&sol;p>&NewLine;<p class&equals;"x&lowbar;Default"><span lang&equals;"EN-AU">&OpenCurlyDoubleQuote;Home life can have a huge impact and the students we spoke to were incredibly diverse&period; There is significant variation in the structure of their households&comma; with many not living with their parent or parents&period; There is also evidence of parents not being able to provide financial guidance&period;”<&sol;span><&sol;p>&NewLine;<p class&equals;"x&lowbar;Default"><span lang&equals;"EN-AU">Financial Basics Foundation CEO Katrina Samios said the research further highlighted the need for all teenagers to learn more about personal finance and money management as a safe path to financial security&period;<&sol;span><&sol;p>&NewLine;<p class&equals;"x&lowbar;Default"><span lang&equals;"EN-AU">&OpenCurlyDoubleQuote;There is evidence that knowledge and awareness of effective financial strategies is actually going backwards&comma; despite financial literacy education being addressed in the Australian school curriculum&comma;” Ms Samios said&period;<&sol;span><&sol;p>&NewLine;<p class&equals;"x&lowbar;Default"><span lang&equals;"EN-AU">&OpenCurlyDoubleQuote;This is a significant concern&comma; and the <b><i>Financial Literacy of Young Australians report <&sol;i><&sol;b>should be a wakeup call for governments and educators&period;<&sol;span><&sol;p>&NewLine;<p class&equals;"x&lowbar;Default"><span lang&equals;"EN-AU">&OpenCurlyDoubleQuote;We want all young Australians to have a secure financial future and a clear understanding of the strategies they can employ to achieve that&period;<&sol;span><&sol;p>&NewLine;<p class&equals;"x&lowbar;Default"><span lang&equals;"EN-AU">&OpenCurlyDoubleQuote;Consistent with this report’s recommendations&comma; we are calling on governments to introduce financial literacy as a standalone course across all secondary schools&period;”<&sol;span><&sol;p>&NewLine;<p class&equals;"x&lowbar;Default"><span lang&equals;"EN-AU">Suncorp Bank CEO Clive van Horen echoed the recommendation to introduce financial literacy as a standalone course&period;<&sol;span><&sol;p>&NewLine;<p class&equals;"x&lowbar;Default"><span lang&equals;"EN-AU">&OpenCurlyDoubleQuote;A standalone course based on managing personal finances not only helps teach young Australians how to make good financial decisions&comma; but it supports their financial and mental wellbeing&comma; knowing they are working towards a financially secure future&comma;” he said&period;<&sol;span><&sol;p>&NewLine;<p class&equals;"x&lowbar;Default"><span lang&equals;"EN-AU">&OpenCurlyDoubleQuote;Not enough emphasis is put on this important life skill in schools and more can be done&period; As a father of three teenagers&comma; I understand some of the challenges kids experience navigating their way through life&period; More can be done to build their financial wellbeing skills in schools&period;”<&sol;span><&sol;p>&NewLine;

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