3 June 2008

Minister Launches Financial Literacy Package for Teachers

Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law and Mr Paul Clitheroe, Chairman of the Financial Literacy Advisory Board, today launched a package of support materials and resources to help teachers deliver consumer and financial literacy education in schools.

"Financial literacy is an absolutely vital life skill for young Australians. The Rudd Government recognises that it's critical that young people get the chance to learn money skills at school so they're better equipped to make informed consumer decisions," Minister Sherry said.

"It's important that young Australians have the knowledge to deal with financial issues from an early age. With mobile phones, credit cards and internet banking, there are a wide range of financial issues young people have to contend with," Mr Clitheroe said.

Over 2008, consumer and financial literacy will be incorporated into core subjects, including English and maths, and across all years from Kindergarten to Year 10. Topics for study include basic budgeting, banking, credit cards and mobile phone plans.

"I would like to congratulate the public, independent and Catholic school sectors for their collaborative efforts to integrate consumer and financial literacy into the school curriculum," said Minister Sherry.

The groundbreaking new package includes training modules for facilitators, a teacher's guide and a DVD showing how consumer and financial literacy has already been introduced across primary schools in the Maitland region in NSW. The online package and support materials and resources for teachers are available at www.financialliteracy.edu.au.

From next month, teachers in primary and secondary schools nationally, will also receive professional learning on how to integrate consumer and financial literacy into core subjects through the Department of Education, Employment and Workplace Relations' Australian Government Quality Teaching Program.

"Teachers must receive the support they need to teach financial literacy in our schools. I would also like to acknowledge the important role parents can play in fostering these skills in their children - today's package will further assist these grass roots champions of learning," Minister Sherry said.

For more information about consumer and financial literacy in schools, see www.understandingmoney.gov.au/content/education.

 

 

More information - National Consumer and Financial Literacy Framework

The Package draws on the nationally agreed framework for teaching consumer and financial literacy at school and focuses on four main areas:

  1. Understanding money;
  2. Consumer education around developing responsible, ethical, and sustainable consumption patterns;
  3. Personal finance and budgeting; and
  4. Managing money, including saving, debt, credit cards, and superannuation.

Teaching consumer and financial literacy in schools

School level

Focus of learning

Examples of topics, themes and issues

Lower primary

 

Understanding
money
  • Understand that money is limited and can come from a range of sources, such as pocket money, wages and gifts.
  • Compare the value of different brands of a similar item, such as bottled water.
  • Explore opportunities to earn money or other rewards, for example by doing chores or assisting a charity by participating in a supervised car wash.
  • Raise awareness about the types of consumer packaging, and how advertisers use sporting figures, celebrities and 'in' groups to help sell products.

Middle primary

Consumer
education
  • Learn how interest can be earned by putting money into a savings account.
  • Prepare a simple budget for a fundraising activity.
  • Complete simple financial forms such as bank deposit slips.
  • Develop a simple plan for a class fundraising event or enterprise.
  • Understand how responsible attitudes to issues such as recycling and water conservation can benefit the family, the community and the environment.

Lower secondary

Personal finance
and budgeting
  • Learn about requirements to provide accurate information to consumers, and understand the issues and risks involved in Internet transactions.
  • Distinguish between short and long term planning, and understand issues related to impulse buying.
  • Compile simple budgets for activities such as a family meal or outing.
  • Identify actions that can increase income or reduce spending, for example by buying a bike to use for delivery job, and buying energy efficient products.
  • Increase awareness of the needs and wants of other groups, and consider socially responsible ways of spending and saving money.

Upper secondary

Managing
money
  • Understand the use of credit, including paying interest, interest free days, potential reward schemes and fees and charges.
  • Learn how to evaluate mobile phone plans.
  • Recognise illegal and misleading promotions and selling methods.
  • Use spreadsheets and simple Internet tools to keep financial records.
  • Develop buyer resistance strategies and evaluate sales marketing techniques, including interest free contracts.