Since responsibility for the country\u2019s money smarts was swept from ASIC to Treasury in 2022, the Australian Government Financial Literacy Board has been dormant. This board (and its wonderful members) previously made inroads getting financial literacy added to subjects as something of an optional extra to teach.<\/p>\n
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How lacking are our kids \u2013 as a consequence \u2013 in money smarts? We don\u2019t even know. Australia \u2013 inexplicably \u2013 stopped participating that same year, in financial literacy component of the OECD Programme for International Student Assessments (PISA).<\/p>\n
We have been a \u201cno thank you\u201d in both 2022 and for the latest one, which began in August. This is after participating in the optional assessment for 15-year-olds (the mandatory ones are reading, maths and science) up to 2018.<\/p>\n
Last week I spoke in-depth with Neil Edmond, the creator of the MoneyTime financial literacy resource that aims to supplement the curriculum with this vital skill, in both Australia and New Zealand.<\/p>\n
Before New Zealand\u2019s emphatic recognition of its importance, and imminent inclusion of financial literacy lessons in schools, he says our two curricula have been very similar.<\/p>\n
And in Australia, upon considerable investigation, Edmond could find virtually no explicit financial literacy aspects to the curriculum beyond a smattering in basic maths, though it is supposed to be there on the periphery across a range of subjects.<\/p>\n
\u201cI was expecting to see that financial education was embedded as a decent chunk of work in one of the core subjects, like Maths or Social Sciences or Humanities and Social Sciences,\u201d he says. \u201cBut it\u2019s not. It\u2019s very light touch. It is as bad or as light as what the curriculum currently is in New Zealand.\u201d<\/p>\n
But from next year, Edmonds expects that to be vastly different over there. \u201cThe draft regulations released this month will include a solid section on financial education with required learning outcomes for Years 1 to 10,\u201d he says.<\/p>\n
\u201cI\u2019ve looked at the financial education curricula for countries all around the world and I genuinely believe that this change by the Ministry of Education in New Zealand will set New Zealand up as one of the top countries delivering financial education in the world.\u201d<\/p>\n
In Australia, our financial education is not good enough. And our children \u2013 like Kiwi children \u2013 deserve more.<\/p>\n
Nicole Pedersen-McKinnon is the author of How to Get Mortgage-Free Like Me, available at www.nicolessmartmoney.com<\/a>. Follow Nicole on Facebook<\/a>, X<\/a> and Instagram<\/a>.<\/p>\n Advice given in this article is general in nature and is not intended to influence readers\u2019 decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.<\/p>\n Expert tips on how to save, invest and make the most of your money delivered to your inbox every Sunday. Sign up for our Real Money newsletter<\/a>.<\/p>\n