2016

Presentations from ASIC's Financial Literacy Community of Practice delivered in 2016.

From financial literacy to financial capability: more than a semantic change (29 November)

Professor Elaine Kempson, University of Bristol 

In recent years, there has been a shift from 'financial literacy' to 'financial capability' that reflects more than a semantic change. More recently still, the term financial wellbeing has been gaining prominence. There is a growing emphasis on the need to understand the factors that influence financial wellbeing on the one hand, and financially capable behaviours on the other. These include not only knowledge and skills, but also deep-seated attitudes and motivations that are difficult to change.

In this presentation, Professor Elaine Kempson draws on her extensive research and policy experience to explore the concepts of financial literacy, financial capability and wellbeing and the implications of the recent shifts in focus for policy and practice.

Financial literacy to financial capability - presentation

Video: From financial literacy to financial capability - more than a semantic change

Professor Elaine Kempson, University of Bristol, UK

Professor Elaine Kempson, University of Bristol, discusses the need to understand factors that influence financial well-being and capable behaviours.

Financial literacy: Helping Australians have a better relationship with money (28 October) 

Siobhan Toohill, Westpac Bank 

Siobhan spoke about Westpac's growing program of work aimed at building money confidence in the community, in particular:

  • Understanding money - Westpac's Davidson Institute's money management webinars for individuals, businesses and community groups, with a specific focus on supporting Indigenous organisations.
  • Creating opportunities - Working with Many Rivers to provide microfinance to support the establishment and growth of microbusinesses. The role of the Westpac Foundation in supporting Australians who have a faced barriers to employment find work, through backing social enterprises.
  • Helping out in times of need - The role of Westpac Assist and disaster recovery support programs, helping Australians when they need help most.

PDF  Financial Inclusion - presentation

Kristen Hartnett, The Salvation Army Moneycare

Kristen Hartnett explained how the Salvation Army's Moneycare Program is improving the financial capabilities and resilience of Australians through their 'You're The Boss' program and through Moneycare Day, which was held during Anti-Poverty Week (16-22 October).

Video: Financial literacy - Helping Australians have a better relationship with money

Siobhan Toohill, Westpac Bank, and Kristen Hartnett, The Salvation Army

Siobhan Toohill, from Westpac, speaks about their growing program of work aimed at building money confidence in the community. Kristen Hartnett from the Salvation Army also discusses their Moneycare Program to improve financial capability and resilience. 

Financial resilience: re-thinking financial vulnerability (23 September)

Axelle Marjolin, Centre for Social Impact, UNSW and Elliot Anderson, National Australia Bank

In 2015 NAB and CSI conducted a project that measured the financial resilience of the Australian population. This presentation outlined the concept of financial resilience and its different components, as well as how it differs to measuring financial exclusion. Axelle and Elliot discussed differences in financial resilience levels across and within population cohorts, and highlight vulnerable groups. Their presentation drew out key findings for financial literacy and explained how this new knowledge changes the way we address financial exclusion and vulnerability in Australia. 

PDF Financial Resilience - presentation

Video: Financial resilience - re-thinking financial vulnerability

Elliot Anderson, National Australia Bank and Axelle Marjolin, Centre for Social Impact

Elliot and Axelle present the findings of their joint project which measured the financial resilience of the Australian population.

Developing new financial literacy measures to better link financial capability to outcomes (26 August)

Professor Susan Thorp, The University of Sydney 

There is growing interest in measuring financial literacy and capability with simple survey questions but little agreement on which questions to ask or how to use the results to come up with an overall index of financial capability. Professor Thorp will present the findings of a study she has conducted on behalf of The Institute for Choice with Professor Jordan Louviere (University of SA), Professor Hazel Bateman (UNSW), and Dr Christine Eckert (UTS), with funding from Financial Literacy Australia.

Professor Thorp and her colleagues tested small sets of financial literacy questions that predicted whether people were capable of making sound decisions about loans, insurance and investment. The study has come up with a systematic way to identify sets of discriminating questions for financial decisions and a method to develop a scoring model to rate individuals' financial capability. Read the full report on the Centre for Social Impact (CSI) website

PDF Developing new financial literacy measures - presentation 

Video: Developing new financial literacy measures to better link financial capability to outcomes

Professor Susan Thorp, University of Sydney

Professor Susan Thorp presents on the findings of a study she has conducted on behalf of The Institute for Choice with Professor Jordan Louviere (University of SA), Professor Hazel Bateman (UNSW), and Dr Christine Eckert (UTS).

Guiding girls and young women towards an independent and secure financial future (29 July)

Colleen Fitzgerald, Girl Guides Australia

Jill Pleban and Monica Gyoery, JiMo Partners

One of the ways Girl Guides Australia (GGA) is pursuing its mission to empower girls and young women to grow to be confident, self-respecting community members, is by supporting practical personal financial literacy learning.

With funding and support from Financial Literacy Australia, and working with expertise in learning design and financial literacy, in 2014-16 GGA is developing two programs - one for primary aged girls and one for young women aged 18-30.

The pilot testing phase has just closed and GGA and partners are using the evaluation findings to strengthen the program before it is rolled out later in 2016. Colleen, Jill and Monica discussed the program development process and learning from the pilot, with a focus on non-formal learning practice and evaluation.

Guiding girls towards an independent financial future - presentation 

Video: Guiding girls and young women towards an independent and secure financial future

Colleen Fitzgerald, Girl Guides Australia

Girl Guides Australia and JiMo Partners present their program on guiding girls and young women towards an independent and secure financial future.

Cars sales issues and add-on insurance (24 June)

Our three presentations at the June Community of Practice event focused on car sales issues, add-on insurance, and new tools to assist consumers.

Fiona Maguire and Madeline Pryor, ASIC

ASIC released two reports in February about add-on insurance products commonly sold to consumers when purchasing cars. The reports found that many consumers are being sold add-on insurance products (including life insurance) that are expensive and provide poor value, in a sales process that many consumers find confusing and where some can feel pressured to buy products they don't understand. Fiona and Madeline discussed the findings from these reports, what it means for industry and how it affects consumers.

Add-on insurance in car yards - presentation 

Andrew Dadswell, ASIC

ASIC has released a new mobile app called MoneySmart Cars. The app helps people work out the real cost of buying and running a car and provides key tips and warnings. Andrew demonstrated how the app works.

  ASIC's MoneySmart Cars app - presentation

Philippa Heir, Consumer Action Law Centre

Philippa Heir, Senior Solicitor (Insurance) at the Consumer Action Law Centre, joined us to speak about CALC's experience of add-on insurance, and update us on their 'Stop Selling Junk' campaign, which was launched in March this year, along with DemandARefund.com, a tool to help Australians demand refunds for junk add-on insurance and warranties.

  Demand a refund - presentation 

Video: Car sales issues and add-on insurance

ASIC and Consumer Action Law Centre

ASIC and the Consumer Action Law Centre discuss the recently released report on add-on insurance, the MoneySmart cars app, and the 'Stop selling junk' campaign and Demand a refund website.

Financial literacy levels of university students and their perceptions of financial literacy education in high school (27 May)

Dr. Chrisann Palm (QUT), Dr. Laura de Zwaan (QUT) & Dr. Toni Chardon (USQ)

The ANZ Survey of Adult Financial Literacy in Australia has identified young Australians, those aged under 25, as having low levels of financial literacy (ANZ, 2015). This age group is particularly vulnerable to making suboptimal financial decision given they are inexperienced with personal finance and facing financial decisions for the first time. This study surveyed university students and assessed their subjective and objective financial literacy. It also gathered students' perceptions on the level and quality of financial education they received in high school. We find financial literacy is low across different areas and identify different demographic groups at risk. Results also indicate the majority of respondents viewed high school as not having taught them financial knowledge to prepare them for adult life. Accordingly, it is proposed that education programs should be broadened to incorporate financial literacy as a generic skill for young adults.  

Financial literacy of university students and their perceptions - presentation

A gendered, empowerment approach to women's financial capability (29 April)

Tanya Corrie and Louise Allwright, Good Shepherd Australia

Firmer Foundations is a program run by Good Shepherd Australia New Zealand which aims to build the financial capability of women, particularly women on low income or who are vulnerable to financial hardship and stress. The program uses a range of innovative techniques to build financial capability for women. This includes individual and group coaching, workshops, and peer-to-peer support. The evaluation has shown some fantastic outcomes for women including participation in employment, education and training; paying off debt and developing savings plans; and increasing women's financial confidence and resilience.

The program was developed from Good Shepherd Australia New Zealand's research that identifies the links between financial capability and family violence. A lack of financial resources and confidence is often cited by survivors of violence as a barrier to them staying safe. By supporting women in building their financial capability, we aim to reduce that risk. The program is also driven by our research and practice knowledge into women's economic security, and that women experience poorer economic outcomes than men. Specific, targeted and strengths-based programs are required to enable women to recognise their own inner resources and capacity to achieve financial goals. 

Tanya presented the research that informed the program design and some of the theoretical underpinnings. 

Louise discussed the program delivery and the innovative techniques used to support women in building their financial capability, and some of the outcomes women in the program have been able to achieve.

Firmer Foundations Program, Good Shepherd Australia New Zealand - presentation

Video: Firmer Foundations - A gendered, empowerment approach to building the financial capability of women

Tanya Corrie and Louise Allwright

Tanya Corrie and Louise Allwright present on Good Shepherd Australia's Firmer Foundations program.

Financial Literacy: An international perspective (26 Feb)

ASIC is a member of the International Organization of Securities Commissions (IOSCO), an international body that brings together the world's securities regulators and is recognised as the global standard setter for the securities sector.

In February, ASIC was host to members for the Committee 8 meeting in Sydney and invited three members to speak about how financial education, literacy, and capability is conducted in their countries. Each speaker gave an overview of the strategic approach in their country, effective and innovative programs, and how they reach different target groups.

Rosemary Lim, Monetary Authority of Singapore

Rosemary Lim, Director and Head of the Capital Markets Policy Division at the Monetary Authority of Singapore.  The division is responsible for policy formulation on issues such as business conduct requirements across the financial sector, and regulatory policies on market infrastructures. 

Delivering Financial Education in Singapore - presentation

Jose Vasco, Securities and Exchange Commission of Brazil (CVM)

José Alexandre Cavalcanti Vasco ("Vasco") is the Director of the Investor Protection and Assistance office at the Securities and Exchange Commission of Brazil (CVM). Vasco has been with the CVM since 1997, during which time he has led various financial and investor education initiatives, as well joint educational projects (public and private sector) for investors, journalists, professors, and judges.

Financial and Investor Education - CVM Brazil - presentation

Jed Hodgson, UK Financial Conduct Authority 

Jed leads the UK Financial Conduct Authority's partnerships function. His team work with a wide range of consumer organisations and special interest groups to gather information on emerging issues which may result in consumer detriment. Jed is responsible for the management of the oversight of the UK Money Advice Service. 

The Money Advice Service - UK FCA - presentation

Video: An international perspective on financial literacy

Jose Vasco & Jed Hodgson

Jose Vasco (CVM, Brazil) and Jed Hodgson (FCA, UK) give an overview of the strategic approach to financial literacy in their country, effective and innovative programs, and how they reach different target groups. 


Last updated: 08 Dec 2016