Christine Hornery

Financial planner, Christine Hornery, CFP, director of FMS Group and Association of Financial Advisers (AFA) 2012 Female Excellence in Advice Award winner, has welcomed comments made by Australian Securities and Investments Commission (ASIC) Chairman, Greg Medcraft last week that financial literacy for children is a top priority.

Commenting on a speech[1] made by Mr Medcraft to the Australian Bankers’ Association (ABA), which listed educating the next generation through the formal education system as priority one of ASIC’s 2014–17 National Financial Literacy Strategy, Ms Hornery said it has often been difficult to educate her adult clients, let alone teach them to pass on financial literacy skills to their children.

“By way of example, some people do not seem to understand that credit cards are loans on which they pay very high interest,” she said. “These people feel that the cash available on their credit cards is their own money to spend as they like. If this is any indication of the type of lessons parents are teaching their children, then we have a serious issue coming our way in terms of debt.”

Ms Hornery therefore believes more attention needs to be paid to addressing these basic issues when children are at school. “Despite many well-intentioned attempts, our school system to date does not appear to have significantly addressed the practical financial responsibilities that an individual has throughout his or her lifetime,” she said. “Financial literacy isn’t about the theory, it’s about the practical – the information children will learn that will actually give them the knowledge and resources to make astute decisions around credit cards, car loans, home loans and budgeting.”

In his speech to the ABA, Mr Medcraft said that under ASIC’s MoneySmart Teaching program, more than 10,000 teachers have received face-to-face professional development and over 40,000 copies of teaching resources have been distributed to schools nationally. Under the action plan in the 2014–17 Strategy, he said ASIC’s goal is to train a minimum of 20,000 additional teachers, with the ultimate objective of teaching financial literacy from kindergarten to Year 12, in all 10,000 Australian schools.

Ms Hornery applauded the move, saying, “We need to start teaching our children that by planning and budgeting we can live the lives we want to lead for longer. Learning how to plan for the future is an invaluable skill.”

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[1] Medcraft, G 2014, ‘The 2014–17 National Financial Literacy Strategy: A speech by Greg Medcraft, Chairman, Australian Securities and Investments Commission [to] Australian Bankers’ Association (ABA) Broadening Financial Understanding Conference’ 3 September, viewed 9 September 2014,  http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/National-financial-literacy-strategy-speech-published-3-September-2014.pdf/$file/National-financial-literacy-strategy-speech-published-3-September-2014.pdf

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ASIC’s digital activities will help teachers use the latest technology to teach students from Foundation to Year 5 about the financial principles of planning, saving, spending, donating and investing wisely. The resources are part of ASIC’s MoneySmart Teaching program – an initiative developed to improve financial literacy in schools.

‘Teaching children about money from an early age is critical to setting up good foundations for the future. Young people benefit from learning experiences which are relevant, engaging and available on demand’, said ASIC Commissioner Peter Kell.

Developed in collaboration with Global Vision Media and Roar Film, ASIC’s digital activities are based on the National Consumer and Financial Literacy Framework and are aligned to the Australian Curriculum.

ASIC’s digital activities support teachers and parents with learning tools which mirror students’ daily lives. Five to 7 year olds learn to identify the difference between ‘needs’ and ‘wants’ by helping the character, ‘Flynn’ get ready for school, while 8 to 10 year olds plan and budget for a day out with their class.

Students will also learn about the basic financial and consumer requirements of a family through ‘MoneySmart Town’ – a game which requires players to manage money successfully to keep their virtual family happy and healthy. MoneySmart Town is designed for students in Years 3-4 and will be hosted on Skooville – a safe social networking site for children through schools.

ASIC’s resources are freely available on its MoneySmart Teaching website and are designed to be used in the classroom and at home.

‘Financial literacy is a partnership between teachers and parents and we encourage families to use these activities at home. Consumer and financial literacy shouldn’t be confined to the classroom. Activities are easy to download and can be used on a range of platforms including computers and iPads’, said Mr Kell.

‘We’ve also developed some practical and easy-to-use notes for parents who are interested in talking to their children about money but unsure how to approach the topic.’

ASIC is also launching MoneySmart Teaching Online – a professional learning program which provides teachers with the knowledge, skills, strategies and teaching materials to teach consumer and financial literacy. The program comprises two modules, one for primary and one for secondary teachers. These modules were developed by ASIC with Janison and feature expert interviews, case studies in schools, and scenarios. Both modules are aligned to the National Professional Standards for Teachers (AITSL).

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