This week, the Organisation for Economic Co-operation and Development (OECD) released the 2018 Programme for International Student Assessment (PISA) financial literacy results.
The survey measures how well 15-year-olds understand commonly used financial concepts and how capable they are at solving routine problems in financial contexts.
In 2018, Australian students performed above the OECD average and Australia ranked fifth out of the 20 participating countries. While these results are positive, it is more important than ever that young Australians have the skills to manage money and plan for the future.
Young people are learning about money at school and financial education is embedded in the Australian Curriculum. While schools will continue to play a meaningful role in delivering financial education, lessons young Australians learn outside of the school environment are even more important in shaping the behaviours that contribute to their financial wellbeing.
In 2020, ASIC will establish a national expert group on youth financial wellbeing to help identify the most relevant and significant issues impacting young people’s financial lives and shape work in this area.
Young Australians are active consumers - they are setting savings goals, shopping online, using debit cards and making payments with their phones. They also deal with complex financial decisions around leaving school, pursuing further education, employment, moving out of home and forming relationships.
It is imperative that the national expert group understand the perspectives of young people and for this reason its membership will include youth representatives along with representation from relevant public and private organisations.
Learning early in life how to manage money, save and plan for the future and make informed decisions, enables young people to be in control of their financial lives.
Background
ASIC leads the National Financial Capability Strategy. The National Strategy identifies young people and educating the next generation as a priority and supports a shared understanding of the importance of financial education, and that starting this education at a young age is crucial
ASIC is committed to helping all Australians to be in control of their financial lives and is focused on:
- Building capabilities to support effective financial education in schools;
- Supporting families to have positive money conversations at home; and
- Promoting opportunities for young people to connect financial education to real life experiences, including transitions from school to work or further study.
PISA 2018 Financial Literacy assessment
As the Australian Government agency responsible for financial capability strategy, ASIC facilitated Australia's participation in the PISA 2018 Financial Literacy assessment.
Released by the OECD as part of its Programme for International Student Assessment (PISA) 2018, the study evaluated the financial literacy of 15-year olds.
This is the third time that financial literacy has been part of the OECD's PISA, a triennial international survey which tests the skills and knowledge of 15-year olds from countries and economies across the world.
Internationally around 117,000 students participated in the financial literacy assessment in PISA 2018 (representing about 13.5 million 15-year-old students), with around 9,411 students participating in Australia.
PISA is not a curriculum-based assessment. It is designed to measure the cumulative outcomes of education by assessing how well 15-year-olds (Year 10) are prepared to use their knowledge and skills in particular areas to meet real-life opportunities and challenges.