Financial literacy and financial literacy programmes in Australia

Abstract

Financial services markets require consumers to be more financially literate if they are to manage their finances effectively. Consequently, there have been an increasing number of attempts to measure financial literacy, as variously defined, and in response to observed deficiencies in financial literacy, an expanding number of financial literacy programmes implemented worldwide, not least in Australia. The purpose of this article is twofold. First, review the existing evidence on the level of financial literacy in Australia, along with the posited determinants and potential impacts on consumers and the marketing of financial services. Second, discuss the financial literacy programmes currently in place in Australia aimed at increasing the level of financial literacy across the population as a whole and in specific groups set in place by government, industry, community and workplace initiatives. The article includes brief critiques of the process of measuring, assessing and understanding financial literacy as it stands and the purpose, design and evaluation of the financial literacy programmes currently in place.