The Australian Securities and Investments Commission’s (ASIC) National Financial Literacy Strategy hopes to make the public more aware and knowledgeable of everyday money matters over the next three years.
ASIC found that around three-quarters of Australia’s adult population are unlikely to consider the level of cover they need when renewing their personal insurance policy, just one example why the Australian government plans to improve the nation’s financial literacy with a new long-term program.
The aim is to use free tools and resources to improve the public’s basic knowledge of everyday money matters – including the important subjects of insurance and risk planning – with that understanding naturally transferring into everyday work life and business insurance decisions.
The plan is likely to affect those who run their own business, or small and medium enterprises (SMEs) without their own legal departments, to develop a better understanding of how they can best address the insurance needs of their company.
Whether that involves looking at manufacturing insurance or investing in tax investigation cover, the initiative aims to give decision-makers a better well of knowledge to use when discussing their needs with insurance brokers or providers.
Part of the initiative is to improve financial literacy in young people, with an incentive to promote financial knowledge through regular school education.
Chairman of the Australian Government Financial Literacy Board, Paul Clitheroe, said: “learning good financial skills and habits from an early age can make a difference throughout life.”
“Educating the next generation to be money smart is a key part of the National Strategy,” he continued, “with over 80 per cent of Australian 15-year-olds having a bank account and about 90 per cent of teenagers [owning] a mobile phone.”
An earlier report showed that Australian students performed better than the global average for financial literacy, giving strong hope that the next generation of business owners will be well financially educated individuals with whom the insurance industry can collaborate on business insurance needs.