Multiple studies conducted over the last five years show financial literacy rates at schools are declining and that girls are disproportionately affected, often scoring lower than young boys.
While financial literacy content is included in the Australian curriculum there is no consistent delivery of how it is taught across the education system. Financial literacy education at high school is often delivered within mathematics, where girls tend to underperform compared to their male counterparts.
Ad-hoc approach must end
According to Katrina Samios, CEO and Director of Financial Basics Foundation, the way financial literacy content is delivered directly affects the confidence in female students to learn. She says this important subject should be taught as a standalone subject in schools, arguing that topics such as budgeting, saving and investing are fundamentals for young people’s future success.
“Currently financial literacy is delivered in an ad-hoc manner in schools – with elements mostly being delivered in Mathematics and Economics and Business classes,” Samios told The Educator.
“The focus in mathematics is often based around working out formulas and calculations. Many students, especially girls ‘switch off’ with this learning approach.”
Girls especially assume that personal finance is heavily associated with maths and is therefore not in their domain, Samios said, pointing out that higher level maths doesn’t cover ‘everyday’ personal finance and money.
Inclusive approach needed
The Financial Basics Foundation is calling for a more systematic approach to Financial Literacy in Australian schools, specifically, a stand-alone life skills course which focuses on real life personal finance.
“Schools should adopt an inclusive approach to financial literacy programs, ensuring content is relatable and accessible for female students,” she said.
“Emphasise practical, real-life applications of financial concepts, and create a supportive environment that encourages questions and collaboration to foster mutual learning and confidence.”
Between 19 August and 30 August this year, the annual Suncorp Bank ESSI Money Challenge – now in its ninth year – will bring thousands of students from hundreds of schools together to enhance financial literacy among secondary school students nationwide.
Last year, 9,241 students from 320 schools across Australia participated in the Challenge, with 72% reporting that they strongly agree or agree that ESSI Money is relevant to them and their life outside of school
Samios said feedback shows a similar number (74%) strongly agree or agree that they are more interested in actively managing their own money and making decisions about their own personal finances because of playing ESSI Money.
Importantly, 63% indicated that they had reached out or sought advice about money and financed from a trusted adult outside of school as a result of playing ESSI Money.
“Furthermore, it is always pleasing to receive positive feedback from teachers whose students participated in the 2023 Suncorp Bank ESSI Money Challenge,” Samios said.
One teacher said: “The students were very engaged and highly motivated to do the best they could with the majority of students begging to do the ESSI Money challenge in class instead of regular content, showing its effectiveness in hooking students in”.
Another teacher said their school doesn’t get to teach financial literacy very often due to time pressures and limitations of the syllabus.
“So, it's great to have this opportunity to have the students develop their financial knowledge and skills,” the teacher said. “Having them exposed to bank accounts, shares, jobs etc, which they don't usually get through school and maybe not at home, could only be beneficial”.
‘Life skills must be integrated into curriculum’
Samios said while the organisation’s study showed no gender specific differences in the financial knowledge of boys and girls, there was a perceived lack of confidence for some girls, particularly when they were in focus groups with boys present.
“When girls were given the chance to discuss the financial concepts and reflect or what they know, girls are just as knowledgeable as boys,” she said.
“Involving young people, particularly girls in regular conversations about money is the first step in setting them up with the skills to make informed choices for a sound financial future.”
Samios said healthy attitudes and confidence around money enables young people to learn complex concepts such as investing and how to make smart decisions to make more money.
“Schools should integrate life skills lessons into their curriculum, emphasising practical financial management,” she said.
“By embedding these life skills into the curriculum and fostering collaboration, schools can create a supportive learning environment that addresses the financial literacy gender gap effectively.”
To facilitate this, Samios said schools can embed personal finance in life skills lessons and host workshops where parents and community experts are invited to lead sessions on financial topics.
“Schools can also create and use existing resource materials such as those developed by Financial Basics Foundation, encouraging parents to access the Parent Hub which is a toolkit for parents to use at home,” she said.
“Family involvement is also key, so schools should consider encouraging family-based projects that require financial discussions and decision-making.”