With April marking Financial Literacy Month, Financial Basics Foundation, an independent financial literacy charity, is calling for an overhaul of the delivery of financial literacy in schools with girls slipping through the cracks of Australia’s education system.

Citing multiple research studies from the last 5 years, as well as its own qualitative research, the Financial Basics Foundation has identified not only that literacy rates at schools are declining, but that girls are disproportionately affected, often scoring lower in financial literacy than young boys1.

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 counterparts2. The way the content is delivered directly affects the confidence in female students to learn.

Katrina Samios, CEO and Director of Financial Basics Foundation emphasizes the critical importance of financial literacy as the gateway to essential life skills. She advocates for financial literacy to be taught as a standalone subject in schools, stressing that topics such as budgeting, saving and investing are fundamentals for young people’s future success.

“We know that financial wellbeing is inextricably linked to our individual and social wellbeing. We also know that schools have a key role to play in the social, emotional and intellectual development and wellbeing of their students. Schools play an integral role in preparing a young person for life in the real world, however research has found that there needs to be a shift in current practices in the way financial literacy is viewed and delivered in schools, particularly as it relates to girls,” said Samios.

Samios underscores the findings from both domestic and international research, suggesting that when financial literacy is integrated into mathematics, it negatively impacts girls’ confidence and engagement. She attributes this decline not to a lack of interest or ability among girls, but rather to the framing of the content within the educational context

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“The Financial Literacy of Young Australians research investigates why young women have lower levels of financial literacy than men. We wanted to better understand what was happening in schools that might cause girls to disengage from this skill and if so, what could be done to address the problem to support all young people to develop these essential life skills.

The research found that a much higher percentage of girls lacked confidence in their financial literacy knowledge and their approach to managing money in contrast to the boys who were confident in their understanding.1

To ensure equitable opportunities for all students in making informed financial decisions, the Financial Basics Foundation asserts that financial literacy must be prioritised within the Australian curriculum, akin to subjects like English and Science.

“As an independent charity with financial wellbeing for all young people as our core charter, we have access to local and global data that supports our advocacy for the integration of financial literacy as a standalone course in the Australian curriculum.

“For example, in Finland financial literacy is taught across several disciplines in school including social studies, maths, home economics, study guidance and even languages. Evidence in the 2018 PISA financial literacy tests placed Finnish children second amongst 30 similar nations for their understanding of financial literacy concepts3.”

“Another recent study that compared Peru to the less affluent Uruguay, indicated in both cases, women’s financial literacy rates are at the same level as those who are from remote and rural populations, the less educated and low-income people4. said Samios. The study identified that when financial education lessons were taught in school there was a sizable effect on parental financial behaviour within disadvantaged households, such as lower default probability and higher credit scores. The strongest effect was shown to be among the parents of daughters5. During Financial Literacy Month, the Financial Basics Foundations aims to highlight the gender gap in financial literacy in Australia and develop a framework for schools, parents, students and partner organisations to deliver a holistic approach to solving the problem.

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