media release (13-143MR)

Make your first money decision a good one

Published

ASIC has launched a new initiative that will help 16–25 year olds avoid expensive 'rookie errors' when they make first time financial decisions.

ASIC’s ‘MoneySmart Rookie’ education initiative involves a series of videos, case studies, information and tools to help young people make smarter financial decisions. In addition, educator guides have been produced for mentors and advisers working with young people.

The launch follows 18 months of extensive research and consultation with youth experts, youth organisations and young people to understand what challenges they face when managing their money.

The main findings from the research showed 16–25 year olds have difficulty prioritising their spending and savings, understanding contracts, knowing their rights and responsibilities and where to go for help if things go wrong.

The content can be found by searching 'MoneySmart Rookie'.

Rookies can find information to help them with:

  • Credit and debt – choosing the right credit, avoiding fees and charges and making a repayment plan.

  • Getting a car – working out how much you can afford, being ready for extra costs and shopping smarter for a new or used car.

  • Starting work – how to know if you are being paid the right amount and getting clued up on your entitlements.

  • Moving out of home – planning ahead to avoid big bills and explanations of the stuff you have to sign.

  • Mobile phone deals and plans – what to know before you choose a plan and sign a contract, making sure your phone is secure and what to do if you can’t pay your bill.

  • Online transactions – buying stuff safely online and keeping your personal information secure.

Robert Drake, Senior Executive at ASIC’s MoneySmart says, ‘Most of these issues will be relevant for every young person as they experience these challenges for the first time.'

‘If you’re a rookie and you need some help making a first-time financial decision – don’t learn the hard way. Understand the costs of what’s involved and find out what questions to ask and where to get help. Search for MoneySmart Rookie’, said Mr Drake.

The most common rookie errors young people reported making were:

  • running out of money for essentials

  • accessing credit through non-mainstream means and paying higher interest rates

  • racking up a bad credit history from missed payments and limiting future borrowing potential, and

  • relying on advice from people who do not know the full details.

Robert Drake said, ‘ASIC is about making sure people are confident and informed when they make financial decisions and it is important to get it right when making these decisions for the first time.

If you’re a parent, get your son or daughter to search for MoneySmart Rookie and avoid being out of pocket yourself for their rookie errors.’

Educator guides for youth and community workers and lesson plans for year 9–10 high school teachers will be available on ASIC’s MoneySmart Teaching website.

Background

ASIC is working with youth organisations around the country to provide education and training so they are better equipped to assist young people. ASIC’s Outreach team will facilitate training sessions for professionals and volunteers who work with young people on how to use the MoneySmart Rookie educational materials.