Description of the programme

Certificate 1 Financial Services is a national (Australian) programme delivered by The Smith Family to support disadvantaged young people to make informed decisions and successfully manage their finances. It has been delivered since 2007. The programme has been tailored for delivery in high schools located in Learning for Life communities (disadvantaged areas targeted by The Smith Family) with students in Years 9 to 11. Topics include:

• Developing and using a personal budget and savings plan.
• Understanding debt and consumer credit products, superannuation, the Australian financial system and markets, and taxation.

The programme is delivered by qualified facilitators, typically over five two-hour sessions comprised of six units of competency, containing case studies, activities to apply knowledge, and group discussions. Upon completion of the course, participants who demonstrate that they meet the required competencies are eligible for a Certificate 1 in Financial Services.

The study

Evaluation was conducted by The Smith Family. Data sources included:

• Programme data: registration, attendance and completion.
• Pre and post-programme surveys (n=673 and n=472, respectively).
• Three month post-programme survey (n=79).A total of 435 pre and post programme surveys were matched individually (using identifiers).

Longer term impacts were analysed using follow-up data, although the lower number of responses meant that these were not matched individually. Instead, proportions were compared.

Key findings

There were 974 participants in 2015, the mean age was 16 years and 55% were female. The majority were located in New South Wales (49%) or Victoria (29%). Of the 974 students who participated 81% achieved a Certificate 1 in Financial Literacy

Analysis of pre and post programme survey responses revealed increases in the following indicators of financial capability.

• • Knowledgeable about superannuation: before = 28%; after = 96%
  • Knowledgeable about debt: before = 60%; after = 96%
  • Knowledgeable about consumer credit: before = 16%; after = 81%
  • Know where to get help with financial decisions: before = 40%; after = 93%
  • Knowledgeable about rights when making financial decisions / transactions: before = 20%; after 82%
• • Confidence in making financial decisions: before = 37% ; after = 85%
  • Confidence in managing their finances: before = 64%; after = 94%
• Use a savings plan often: before = 37%; after = 68%
• Use a budget often: before = 36%; after = 65%
• Shop around when buying products: before = 56%; after = 79%

The survey conducted three months after the programme showed that changes were sustained (although respondent numbers were smaller and data was not individually matched).

The study also compares results over three years, showing improvement in short and medium term outcomes for each cohort across most measures.

Points to consider

• • The programme is unique because participants gain a Certificate 1 level qualification upon completion. This enhances the value of the programme to participants.
• • A relatively large sample of individually matched pre and post-programme data is used in this study.
  • The findings are not necessarily generalisable as the programme is only delivered in lower socio-demographic areas. Almost one in ten (8.5%) participants were recipients of Learning for Life programme support, a scholarship for children and young people in low income families.
• • The evaluation did not explore causality.
  • Distribution of the three month post-programme survey was limited to those students who supplied an email address. This and the lower number of responses collected may mean that this is not a representative sample of those who took part.
  • The evaluation design and sample were broadly comparable to the previous years’ evaluations. However, previously there was also a six month follow-up survey.

Full report

The Smith Family’s financial literacy programme - full report