Plenary session 3

Topic: The importance of financial literacy in a rapidly changing world

Speaker: Paul Clitheroe AM, Chairman, Australian Government Financial Literacy Board

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Illustration of plenary session 3

Plenary session 3

Illustration by Gavin Blake of Fever Picture

Accessible text version

Paul Clitheroe AM

The importance of financial literacy in a rapidly changing world

Improving financial literacy is a long term journey:

  • We are now getting traction in the Australian curriculum
  • Financial literacy around the world - we're well and truly on the map

Here in Australia:

  • 90 MoneySmart schools in 2012
  • 6,000+ teachers now trained in financial literacy - need to build on this
  • Practical stuff - we know we need to budget, we have got to pay for stuff, we know a financially literate employee is a good employee

Daniel's story:

  • 22 year-old bloke
  • Got a great deal on the car... bad deal on the finance... you know the story...
  • Daniel's grandma guaranteed the loan: "I could have lost my house... over a car!"

Issues:

  • How do we regulate this process more? Responsible lending - mention: "hardship"
  • Lender: "What about my profit?" You could help by not giving kids 15% loans!

Solutions:

  • Innoculate - if we affect enough of the herd, we may reach a tipping point
  • The 3 hours I spent with Daniel - has changed his life, he will spread this knowledge amongst his friends and community

Last updated: 17 Dec 2015