Llyfrgell Ymchwil
Financial capability of Australian secondary school students
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Context
A current issue for policy makers in Australia is the relative lack of data on young people’s financial decision-making. In particular, there is little current evidence about the social and economic contexts and influences, such as peers, families and advertising that shape the financial decisions of young people. The financial landscape is complex, and individuals must make financial decisions at earlier ages (e.g. the cost of education). A better understanding of the contexts in which young people make financial decisions, and their experiences of financial decision-making will provide important and useful information that can shape financial education policies – the core goal of which is to ensure all Australians are able to make confident financial decisions.
The study
Nine schools out of 100 were sampled across the Victoria area, based on their relative mix of students, geographic locations and learning outcomes. Teachers from each school identified a group of 16-17-year-olds to participate in small group interviews. In total there were 68 participants; all participation was voluntary.
The study aimed to understand the factors that impact student’s financial decision-making, Key questions in the focus groups consisted of what participants currently thought about having their own money, their financial decision-making, and how financial matters shape their thoughts and decisions about the future.
Key findings
The analysis of interview data from these focus groups finds that at 16 and 17 years of age the participants are turning their attention to their post-secondary school futures. They are currently active in making financial decisions and thinking about their futures. Many are engaged in goal-oriented savings behaviours directly related to achieving independence after school.
The study finds that young people are keenly aware of the role money has in securing their independence. The interviews provided insights into how participants are thinking about the role of money in their future goals and plans. In particular, participants showed a good level of awareness about the practical, financial realities of living away from home. This was most evident in the interviews with rural and regional participants.
The study finds strong engagement by young people with financial issues, evidencing a willingness to engage with the challenges relating to financial independence. Young adults see their financial decision-making (e.g. saving and part-time work), within the context of achieving future independence.
Points to consider
- students were selected by teachers, meaning the sample could be biased.
- the study focuses on Australian attitudes within Victoria – may not be applicable to the rest of the country and other societies.
- the study describes young people’s attitudes towards financial decisions, but does not make any recommendations for improving financial education in schools.