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Improving financial education in high schools in NSW. Essay Example

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Improving Financial Education in High Schools in NSW


Financial literacy has always been regarded as a critical program (Taylor & Wagland, 2013). Due to the fact that it helps an individual to plan and make wise decision while spending ((Ning & Paula, 2015). Therefore, as a way to help students understand more about the financial literacy, it is very important to integrate a financial literacy program with a school curriculum (Thomson,2014). For students to be able to learn more about it, with the help of their teachers, and
for this to be attained, teachers need support in order for them to impact real information to the learners (Ning & Paula, 2015). As it will help both students and their family at large (Kurzyp, 2016). However, the author clearly elaborated on how to manage finances and the financial programs to be put in place to help student in managing their finances. Furthermore, the literature review falls within the context in a way that it has analysed on various financial programs and its implication to the students and society at large (Ning & Paula, 2015). The literature was well designed in a way that it brings out the content of financial education and how it impacts to the student performance in school (Thomson, 2014).

Literature Review

Financial literacy

Financial literacy means the arrangement of financial information, attitudes and characters to make a good decision on financial matters, as per the individual situation to develop on their well-being (Blue et al., 2014). Therefore, financial literacy is very critical as it assists the adolescent to become more of financially accountable by providing financial information. According to Kurzyp (2016), people under 25 years of age are the poorest in handling financial matters as they either lack adequate skills for others lack formal training, while others have very low income especially women (Thomson,2014). An individual’s ability to manage their money, Ali et al., (2014), and manage financial risk has a very important impact on the financial wellbeing of a person and the society at large. It is therefore critical for the national financial literacy program to shift from a person’s accountability to competency and from theory to real life. Thomson (2014) claim that higher financial facts may encourage learners to become more involved with the formal financial products like students enquiring from their parents to be held responsible for their money. According to Zia & Xu, (2012) the focus on training teachers to ensure that there is effectiveness of financial teaching in school if teachers are provided with the right facilities to ensure that learners are taught issues about finances. In addition, they point out that students are required to exhibit positive behaviours during training (Blue et al., 2014) . As it will motivate teaches to continue to impact the knowledge to them, and this can be done when appropriate standards are implemented.
Asarta, et al., (2014) argue that young people need to be skilled and have enough confidence to be able to make some good financial decision from childhood is said to have come from some international economic some economic trends. Ali et al. (2014) pointed out that
there are some area of financial literacy includes the awareness of consumers about their rights and financial knowledge where some individuals have lower scores that may lead them to poor decision making in term of finances (Ning & Paula, 2015).

Evidence that the literature fall within the context/ depth of content of literature review

The literature fall within the context in that it has explain what financial literacy is and how well it can impact on student. Furthermore, on what can be done so that students can understand what financial literacy is all about (Ali et al 2014). The literature has also been done well as it brings out exactly what student should expect from financial literacy. It is clearly evidence that a thorough research has been done as per the incitation from different authors explaining more about financial literacy

The factors affecting financial literacy

Young individuals are supposed to have competency and information to be able to make the right decision in terms of finances (Taylor & Wagland, 2013). Asarta et al.,( 2014) point out that financial decision affected by an individual social and there economic situation and their families. Parents play a very critical responsibility in how their children manage the finances and able to advice the children on how to manage their finance (Blue et al, 2014) likewise, Ning & Paula, (2015) said that both individual and parents’ financial experience help narrow the gap in financial knowledge caused by lack of financial education (Blue et al., 2014). It is very clear about the connection between financial literacy and the socio-economic background in the Australia, as the way of life of an individual and what a person earns have an impact on how well they are aware of managing financial matters. Additionally, Zia & Xu (2012) linked financial literacy with age, gender and how much an individual earns. Furthermore, they argue that it is also associated with race and ethnicity of an individual even though there is no adequate cross-country analysis about financial literacy (Blue et al., (2014).

Evidence that the literature fall within the context/ depth of content of literature review

A further explanation on factors affecting financial literacy, which is approve that the literature is within the context. According to Zia & Xu,(2012), an explanation on factors affecting financial literacy like age ,ethnicity and gender which indicates that the literature is well done and also approve that a thorough research has been done in the study. And further analysis on how parents help their children to manage their finances.

Financial literacy in Australia

Zia & Xu, (2012) point out that most students in Australia are more likely to score good grades regarding financial literacy, more so if they discuss more issues on money either daily or weekly. They indicate that it is very clear that those students who attained low levels on the expertise scale were more likely accept that learning more about money controlling was very critical to them. Blue et al., (2014) explain that financial literacy education, in Australia, has been regarded as a very critical program in improving teaching about financial matters. They argue that It has been incorporated with the school prospectus to enable student learn more on issues of finances. the author said that it is now upon the tutors who have been trained to ensure student are educated on issues of finances, the teachers have been supported and financially educated to ensure they offer an effective learning material that financial literacy as a way of improving the teaching (Ning & Paula, 2015) . Furthermore, critical analysis of the studies has been done for instance, an analysis of factors affecting financial literacy. Whereby an example has been provided like, age gender, and then they have been analysed on how they affect the financial literacy (Thomson,2014)

Evidence that the literature is within the context/ depth of content of literature review

However, the author clearly elaborated on how to manage finances and the financial programs and how it can impact on students grades in school. Furthermore, the literature review falls within the context in a way that it has analysed on various financial programs and its implication to the students and society at large (Ning & Paula, 2015). The literature was well designed in a way that it brings out the content of financial education and how it impacts to the student performance in school


In conclusion, the private sector and some government institutions have been advising on the importance of financial education programs as important tools to solve the financial literacy problem. There is a body formed called national strategy that is established to expand on the level of financial literacy among the students in Australia. The aim is to integrate the financial education in the current school programmes as from kindergarten up to year twelve learners.


Ali P., McRae C., & Ramsay I. (2014). Financial literacy and financial decision-making of

Australian secondary school students. Retrieved from: http://www.financialliteracy.gov.au/media/558655/research-financialliteracyandfinancialdecisionmakingofaustralianstudentsablr2014forssrn2pdf0.pdf

Ali P., Edward M., McRae C., & Ramsay I. (2014).The financial literacy of young

Australians: An empirical study and implications for consumer protection and ASIC’s national financial literacy strategy. Company and Securities Law Journal, Vol.32, No.5, pp. 334-352, Elservier. Retrieved from: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2490154

Asarta C., Hill A., and Meszaros B.(2014). The features and effectiveness of the keys to

financial success curriculum. International Review of Economics Education Vol16, pp39-50. Retrieved from: http://www.sciencedirect.com/science/article/pii/S1477388014000140

Blue L., Grootenboer P., and Brimble M. (2014). Financial literacy education in the

curriculum:Making the grade or missing the mark? . International Review of Economics Education Vol16 pp51-62. Retrieved from: http://www.sciencedirect.com/science/article/pii/S1477388014000176

Kurzyp R. (2016). Financial literacy programs need to get real. Eureka Street. Jesuit

Communications Australia, Retrieved from:

Ning T. and Paula P.(2015). Financial knowledge acquisition among the young: The role of

financial education, financial experience, and parents’ financial experience. Financial Services Review.Vol24(2) pp 119-137. Retrieved from:

Taylor S. and Wagland S. (2013). The solution to the financial literacy problem: What is the

answer?. Australasian Accounting, Business and Finance Journal. Vol 7(3). Retrieved from: http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1451&context=aabfj

Thomson S. (2014). Financing the future: Australian students’ results in the PISA 2012

financial literacy assessment. Australian Council for Eduactional Research Ltd. Australia. Retrieved from: http://research.acer.edu.au/cgi/viewcontent.cgi?article=1016&context=ozpisa

Zia B. and Xu L. (2012). Financial literacy around the world: An overview of the evidence

with practical suggestions for the way forward. The World Bank. Retrieved from: http://documents.worldbank.org/curated/en/264001468340889422/pdf/WPS6107.pdf