Ecstra Foundation is calling on Australia’s next government to commit to a national, comprehensive and coordinated approach to improving financial wellbeing for all Australians as a social and economic imperative.
It says whichever party forms government has a unique opportunity to drive meaningful and lasting change that will improve the lives of Australians for generations.
Caroline Stewart, CEO of Ecstra Foundation, says multiple factors are eroding Australians' financial health and the next government should take decisive action to address the underlying issues.
“The cost-of-living crisis, increasing complexity of financial products, growth in insurance premiums, a flood of unfiltered financial content on social media and the proliferation of financial scams come at a time when Australia is experiencing declining financial literacy across the population.
“It should be concerning to every politician that no progress has been made on improving financial literacy across any age group in Australia since 2016. We have unfortunately stagnated, and in some areas gone backwards as a nation.”
Ms Stewart pointed out that Australia is increasingly out-of-step with other OECD nations in terms of national approaches to financial capability and literacy. Over 70 countries, including Poland and Germany most recently, have developed and implemented national strategies to enhance their citizens financial lives. Australia’s National Financial Capability Strategy is currently inactive, leaving the country at risk of lagging behind its international peers.
“We know that financial wellbeing directly influences everyday life – it affects mental, physical, and social health. People need clear guidance on navigating money challenges, including debt management, mortgages, tax obligations, superannuation and planning for the future. Providing access to quality financial information and reinforcing it at key life stages can profoundly impact the health, wealth and wellbeing of all Australians.”
Ms Stewart underscored the importance of equipping Australians with financial knowledge, skills and confidence to make informed decisions about their finances, stating this is essential to fostering long term personal and national economic resilience.
Given the urgent need for action, Ecstra Foundation is calling on the next Government to:
- Develop, implement and lead a national financial capability strategy.
- Elevate financial literacy in the Australian school curriculum.
- Invest in evidence based independent resources, workshops, tools and training to help teachers and schools deliver financial education.
As highlighted in Ecstra’s election priorities, Ecstra is committed to improving financial literacy and wellbeing, with a focus on education. Its Talk Money program is now the largest face to face financial education program offered in schools across Australia, reaching over 400,000 students across 10,000 workshops in just over three years. Ecstra has also provided $35 million in grant and program funding over four years, supporting consumer and community organisations dedicated to building financial capability and wellbeing at key life stages.
“We will continue to engage with stakeholders across government, financial services, business, education and the broader community to drive progress. However genuine and lasting change can only be achieved through national leadership and a commitment from the government to make financial literacy a national priority,” Ms Stewart says.
“Elevating financial literacy and capability should not be politically contentious. There is a wealth of experience, established international roadmaps and a proven track record in Australia to guide the development of a new national approach. The next government has the opportunity to lead the way, and gain bipartisan support for a policy that will deliver long lasting net gains to the health, wealth and wellbeing of Australians now and in the future.”
