Leaving school brings a lot of financial firsts. Young Australians start earning, paying bills and managing their own expenses, while also accumulating superannuation that could shape their financial future for decades.
But how prepared are they to make those decisions?
Recent research conducted by Pollinate with Financial Basics Foundation (FBF) and the Australian Retirement Trust (ART) reveals some significant gaps in financial knowledge among Australians aged 16 to 24.
We surveyed more than 1,000 school leavers, and found:
- 34% said they understood how superannuation works
- Less than half recalled learning about money and finance during their education
- 94% believe financial literacy should be taught in schools
That last figure is particularly telling.
Young Australians clearly want better financial education. There is overwhelming agreement that it belongs in the classroom.
But are we equipping them with the right knowledge, early enough?
Financial knowledge gaps can have lifelong consequences
At 18, retirement can feel a lifetime away, making things like superannuation easy to overlook.
But the financial decisions we make when we’re young can have a lasting impact.
Understanding superannuation, compound growth, budgeting and debt gives young people the foundations to make more informed financial decisions from the start.
Without that knowledge, small decisions made early can have consequences that compound over time.
Before we decide what to teach, we need to understand what’s missing.
There is broad agreement that strengthening financial literacy is important.
But simply adding more financial content to the classroom isn’t necessarily the answer.
First, we need to understand what the gaps are:
- What do young Australians understand well?
- Where are they struggling?
- Which concepts aren’t sticking?
- How confident are they in applying what they’ve learned when faced with real financial decisions?
- Who is being left behind?
Research can help move the conversation from “young people need better literacy”: to a much more useful question:
What do young Australians need to know, and how do we help them understand it?
The answers will help educators, government, financial institutions and organisations working with young Australians focus their efforts where they can make the greatest difference.
Financial literacy isn’t simply about knowing what superannuation is.
It’s about giving young people the confidence and knowledge to make better-informed decisions about their financial futures. And when the consequences of those decisions can last for decades, financial literacy shouldn’t be left to chance.
Pollinate conducted this research with Financial Basics Foundation (FBF) and Australian Retirement Trust (ART), surveying more than 1,000 Australian school leavers aged 16-24. The findings were recently featured in the Australian Financial Review.
