Media coverage: Financial literacy helps disadvantaged youth

Moneymanagement.com.au, 6 May 2011 - Financial literacy helps disadvantaged youth

Improving financial literacy skills can help disadvantaged young people set goals and get on top of personal financial challenges, according to Parliamentary Secretary to the Treasurer, David Bradbury.

ANZ’s MoneyMinded financial literacy program reached more than 125,000 people over the past six years through partner community organisations across Australia. An RMIT report into the program found that at-risk young people who received that education through Mission Australia saw vast improvements in attitudes towards money, Bradbury said at the paper’s launch last week.

“Many of the young people who received MoneyMinded financial literacy training through Mission Australia had very little income, high levels of debt and difficult personal circumstances,” he said.

“After participating in various Mission Australia programs, where these young people were taught basic financial literacy skills based on MoneyMinded, they began to set goals for their own future, set their own budgets and better understand where to go for help and information.”

The Government has also introduced a range of measures to boost Australians’ financial literacy, including launching the MoneySmart website, developed by the Australian Securities and Investments Commission, Bradbury said.

The report also found that participants experienced a range of improvements around budgeting, spending less money on items such as take away food, cigarettes and illicit dugs. It also found that participants showed a greater understanding of shopping around for the best price, increased willingness to seek help in times of financial stress and improved saving and goal-setting behaviour.

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ABC Radio’s The World Today, 4 May 2011 - Making sense of dollars

The number of bankruptcies in the under-24 age group is increasing and disadvantaged young people are particularly vulnerable. However, the 2010 MoneyMinded Summary Report by RMIT University in partnership with Mission Australia and ANZ, has found that teaching young people how to manage money can turn that around.

Mission Australia's State Director for Victoria, Paul Bird, told The World Today that a lack of financial literacy is a major barrier to employment, especially amongst disadvantaged youth.

“It's as basic as being able to open a bank account, being able to pay bills and to be able to understand the use of credit cards, especially if a young person has come from a family that's never worked and they've never had their own accommodation,” he said.

Hear more about the year-long study into the impact financial literacy has on disadvantaged youth here: abc.net.au/worldtoday/content/2011/s3207465.htm