Raising financial literacy levels will do more to limit individuals' bad financial decisions and secure wealth in the future than any government regulations, Federal Assistant Treasurer Mal Brough said today.
"Understanding money and how it can work for the individual will lead to greater personal wealth, fewer rip-offs, and a better capacity for individuals to contribute to long-term investment products like superannuation," Mr Brough said.
Mr Brough was speaking at the launch of two separate industry led financial literacy events: Money for Life – Financial Literacy in the Workplace, and the Commonwealth Bank's Improving financial literacy in Australia: benefits for the individual and the nation.
"The movement to secure a more financially aware culture is certainly gaining momentum. While the Government has already committed $21 million to helping Australians spend wisely, save well and plan for their retirement through its Consumer and Financial Literacy policy, businesses and industry groups are also taking the baton and running with it, as we're seeing today" Mr Brough said today.
Money for Life, Financial Literacy in the Workplace is a training programme aimed at improving employee financial literacy skills. The program has been developed with input from government agencies, industry and education groups as well as the corporate sector.
Improving financial literacy in Australia: benefits for the individual and the nation is a report produced by the Commonwealth Bank which indicates that improving financial literacy among the 10 per cent of Australia's least financially literate individuals would contribute $6 billion per year to GDP and create 16,000 new jobs over 10 years.
"These programs complement the work that will be undertaken through the Government's Consumer and Financial Literacy Campaign. With the continued support of businesses and industry, we aim to reach a point where financial literacy messages are embedded in our culture just like the 'Slip, Slop, Slap' campaign.
"We want to help Australians make better, more informed financial decisions – from teenagers with a mobile phone, to adults balancing a family budget, and retirees considering their investments."