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

Media Release: Financial skills help steer young people towards a positive future

Financial literacy education improves the financial understanding and behaviour of young people at risk, according to a national report released today by RMIT University, Mission Australia and ANZ.

The 2010 MoneyMinded Summary Report was launched in Melbourne today by the Parliamentary Secretary to the Treasurer, the Hon David Bradbury MP, and ANZ Chief Executive Officer, Mike Smith.

Prepared by RMIT University, the report includes key findings from a year-long study of more than 300 participants in Mission Australia’s programs for young people at risk. The study investigates outcomes when MoneyMinded, Australia’s most widely used financial literacy program, was included.

Key findings in from the Mission Australia study were:

• Simplified financial education increased young peoples’ understanding and confidence in managing money and was important for their long-term wellbeing.
• Participants experienced a range of improvements with budgeting and reduced spending on items such as take away food, cigarettes or illicit drugs.
• Participants also showed greater understanding of the importance of shopping around for best price, increased willingness to seek help in times of financial stress, and improved saving and goal-setting behaviour.

Mission Australia CEO, Toby Hall, said that financial education played an important role in the various programs designed to transform the lives of young people at risk.

“The development of relevant financial skills empowered these young people to make positive choices that would significantly impact their adult lives,” Mr Hall said.

“It demonstrates financial literacy education changes the financial behaviour of youth at risk and plays a part in steering them towards a positive future.”

ANZ CEO Mike Smith said that MoneyMinded is a demonstration of ANZ’s commitment to building financial capability, particularly in vulnerable communities.

“This report demonstrates the impact that financial literacy programs such as MoneyMinded can have. Improving the ability of people to make financial decisions that contribute to their well-being is a long-term endeavour and we will continue to work with our community partners to do this,” Mr Smith said.

A copy of the 2010 MoneyMinded Summary report can be found here.

For media enquiries contact:
Katie Croft
Tel: 03 9866 4722 or 0413 780 545
Email: kcroft@bcg.com.au

Notes for Editors:

• MoneyMinded is Australia’s most widely-used adult financial education resources, developed to help financial counsellors and community educators build the financial skills, knowledge and confidence of participants. ANZ developed MoneyMinded in 2003 in consultation with government, community organisations and education experts, including ASIC and the Australian Financial Counselling and Credit Reform Association (AFCCRA). The review undertaken by RMIT assessed the overall reach and impact of MoneyMinded since 2005. Over 125,000 people have been reached with the program, which is designed to support vulnerable groups such as low-income earners, rural indigenous participants, people with mental and physical disabilities, high school students, prisoners, unemployed, youth at-risk, migrants, and sole parents.
• Almost 4000 facilitators, mainly community workers and financial counsellors, have been trained to use the program, with currently more than 2000 actively delivering the program across Australia. For more information see www.anz.com/moneyminded
• Mission Australia’s Youth Financial Literacy Program was delivered as part of a number of programs including Triple Care Farm, Links to Learning and Urban Renewal Landscape and Construction. The program was supported by ANZ and CPA Australia.  More information about Mission Australia services can be found at missionaustralia.com.au

This media release was issued by Mission Australia, RMIT and ANZ.