"Being kids, they threw out the most imaginative answer, which I've never heard before," Thomas tells Professional Planner. "They said babies."
While technically not incorrect, the correct answer is women.
"I explained that women retire with half the amount of superannuation that men do," Thomas says. "They were shocked and I asked them if they thought that was fair. They replied with a resounding 'No!'"
This presentation by Thomas and Horizon Group of Companies financial advisers Remo Venditti is part of a program aimed at teaching high school students about budgeting, financial goals, compounding, investing, and superannuation.
The Financial Advisers Association of Australia (FAAA) recognizes the importance of educating young people about financial literacy, according to FAAA general manager Anne Palmer.
"Teaching financial literacy to young people is incredibly important," says Palmer. "It sets them up for success in the future, not just financially but in every aspect of life. The foundation of any financial plan is understanding cash flow and budgeting."
Thomas agrees, emphasizing that even children can benefit from understanding their cash flow and budget. Starting the practice of saving for things instead of relying on debt at an early age is key.
"If they understand the benefits of long-term investing, it's really the world's their oyster," Thomas says. "Young people right now can give themselves a good start by equipping themselves with the tools to save and invest wisely."
In response to the decline in youth financial literacy, Ecstra launched the Talk Money program in 2022, aimed at teaching children about financial literacy. Since its inception, the program has reached over 230,000 students through workshops conducted in schools across Australia.
Roadshows make up 17% of Talk Money bookings, allowing for concentrated time in regional areas across the country. While online workshops are available, the organization prefers face-to-face interactions for better student engagement.
About 24% of bookings in 2023 were repeat bookings, indicating the value that schools see in financial literacy education. External facilitators like Ecstra provide teachers with the confidence to have conversations about money in the classroom.
Ecstra is actively reviewing and improving the Talk Money program based on feedback received from schools and students, showing their commitment to evolving and meeting the needs of young learners.
Anne Palmer and Tracey West, manager of the Ecstra Foundation, both believe that teaching financial literacy is a crucial life skill.
"It's one of the most important subjects young people will ever learn," says Palmer. "It sets them up for success not just financially, but also in all aspects of life."
West adds, "Financial literacy is a key skill that empowers individuals to make informed decisions about their finances and future."
By teaching young people about budgeting, saving, and investing, we equip them with the knowledge and tools to build a more secure and prosperous future.
Published:Friday, 17th Nov 2023
|New Challenges for Aussie Home Buyers|
29 Nov 2023: .financialservicesonline.com.au
The latest ANZ CoreLogic Housing Affordability Report for November has revealed a 'triple whammy' effect on prospective home buyers in Australia. Affordability has worsened for not only buyers but also mortgage holders and renters, and unfortunately, the situation is predicted to deteriorate further by 2024. - read more
|Baby Boomers' Spending Habits: A Challenge for RBA|
28 Nov 2023: .financialservicesonline.com.au
Last week's release of spending data by Commbank IQ has shed light on a concerning trend that is most likely causing headaches within the Reserve Bank of Australia (RBA). - read more
|Rise in Small Businesses Complaints to AFCA Indicates Growing Concerns|
24 Nov 2023: .financialservicesonline.com.au
In the 2022-23 financial year, small businesses lodged a total of 3,807 complaints with the Australian Financial Complaints Authority (AFCA), indicating a significant increase of 9% compared to the previous year. As a result of these complaints, small businesses received $23.4 million in compensation and refunds, marking a 16% increase from the previous financial year. - read more
|Why Embracing AI Can Enhance Your Financial Advice Business|
23 Nov 2023: .financialservicesonline.com.au
Sue Viskovic, the founder of consulting firm Elixir Consulting, highlights the importance of incorporating AI into financial advice businesses in an upcoming episode of the IFA podcast. While there may be apprehension regarding the role of digital tools in providing advice, Viskovic emphasizes the continued need for human interaction and trust. - read more
|New Insights on Inflation and the Australian Economy|
22 Nov 2023: .financialservicesonline.com.au
Reserve Bank governor Michele Bullock has issued a warning, stating that inflation will continue to be a 'crucial challenge' for the Australian economy in the next one or two years. While many attribute the current inflationary pressures to supply-side constraints, Bullock emphasizes the underlying demand component that central banks are trying to address. - read more
|Car Loans: Secured vs Unsecured|
Car loans play a pivotal role in empowering individuals to afford their own vehicle, which can be a significant purchase. These loans, structured to fit within one's financial situation, can ease the burden of acquiring a car and assist in achieving personal convenience and mobility. - read more
|Your Car Loan Journey: From Application to Approval|
In this article, we are embarking on a guided journey that we believe will help immensely in navigating the intricacies of the car loan process. - read more
|Breaking down the cost of fuel: how much do you really spend on petrol per year?|
As a car owner, you probably already know that fuel is one of the largest expenses you have to face on a regular basis. However, have you ever stopped to consider just how much you spend on petrol every year? Understanding the true cost of fuel can be eye-opening, revealing just how much of your hard-earned money goes toward filling up your tank. In this article, we will break down the cost of fuel, exploring the various factors that impact petrol prices and calculating how much you can expect to spend each year. - read more
Leasing is an often misunderstood car financing option so, in response to subscriber feedback, we've included this article to help give you a better understanding of what it is and how it works. - read more
|When to use a Finance Broker for Car Loan Finance |
Whether you're buying a car for the first time or you've been through the process before, it's always worth considering whether or not you should use a finance broker to arrange your car loan. In this article, we'll weigh up the pros and cons of using a specialist finance broker so that you can make the best decision for your circumstances. - read more