Financial literacy strategy to take a generation to succeed
Despite the success of Government initiatives it will take a generation to bring about significant change in Australians' financial literacy, Parliamentary secretary to the Treasurer, Steven Ciobo believes.
In the foreward to the Australian Investments and Securities Commission's (ASIC's) National Financial Literacy Strategy 2014-17, Ciobo said that the process of improving Australians' understanding of financial services would be a "long-term journey".
"Improved financial literacy can benefit anyone, regardless of age or income. Being able to make the most of your money, manage financial risks and avoid financial pitfalls can have a positive impact on the financial wellbeing of individuals, families and communities," he said.
"While considerable progress has already been made, bringing about a significant change in Australians' financial literacy levels is a long-term journey — one that will take at least a generation."
Prior to the launch of the National Financial Literacy Strategy (NFLS) 2014-17, ASIC Chairman, Greg Medcraft, said the commission had a strategic priority to promote confident and informed consumers and investors in the financial system, whether they are taking out a home loan, planning for their retirement or investing in the market.
‘Promoting greater financial literacy is key to ASIC's strategic priority,' Mr Medcraft said
The new strategy has been underpinned by four core principles:
- Shared responsibility: Improving financial literacy is a shared responsibility across the Australian Government, business, community and education sectors.
- Engagement and effectiveness: An approach tailored to life stage or personal circumstances can help motivate Australians to build financial literacy and manage their money effectively.
- Encouragement of good practice: Open sharing of knowledge about lessons learned from financial literacy initiatives contribute to improving evaluation and measurement capability and practice.
- Diversity and inclusiveness: Programs and information, tools and resources must be delivered in an accessible form, recognising the different ways people learn, so that all Australians can participate.
ASIC educating the next generation through in-class programs, the use of free and impartial resources, and the provision of quality targeted support were priorities of the updated NFLS.
AUTHOR
Nicholas O'Donoghue
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