National Financial Literacy Strategy Consultation 2017

The National Financial Literacy Strategy 2014-17 overseen by ASIC provides a framework to guide financial literacy initiatives within Australia.

ASIC are currently conducting a review of this Financial Literacy Strategy.  They are looking at various proposals and key issues such as:

• priority audiences for the National Strategy;
• broadening stakeholder reach and engagement with the Financial Literacy Strategy;
• emerging opportunities and challenges to be considered;
• improving research, measurement and evaluation; and
• encouraging more organisations to get involved with the Financial Literacy Strategy.

As someone interested in improving Financial Literacy in Australia, I made a submission to ASIC.

My key comments include:

Whilst ASIC has a Money Smart program for kids, this is being let down by the program being delivered by poorly trained, and in some cases the wrong people.  My response – “Would you have a plumber teach our next crop of doctors. No, so why do we largely have broke and possibly financial illiterate people teaching financial literacy to our children and young adults. Now don’t get me wrong, these people mean the best, they just may not be the best for this.”

Another issue I addressed is that ASIC seems to want to focus on special interest groups.  My response to this is “start with properly educating our children and young adults. Otherwise in 20 years time we may have some special interest groups better off, but society as a whole is no better off”

And one of my other key points is that we are over complicating financial literacy education.    To me financial literacy is about 4 concepts
1. Take responsibility
2. Learn how to spend less than you earn
3. Learn how to grow your income
4 Invest the difference.

The only real tools most people at the early stage of learning is to understand:
A. compound interest. How it can hurt you with debt and help you with investing
B. Leverage How it can hurt you with the wrong investment and help you with the right investment

if you are interested in the full submission click here or on the link below

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Do you and your family a favour and start taking steps so you can improve the health of Your Wealth and get off the treadmill of working till you drop.

Wayne Wanders

The Wealth Navigator

wayne@thewealthnavigator.com.au

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