A lack of financial literacy can have major consequences that last a lifetime, yet around 50% of Australians struggle with financial literacy as reported in a Household, Income and Labour Dynamics in Australia (HILDA) survey. The problem is more pronounced in women than in men.
In the survey, 50% of men obtained a 5/5 score when asked five basic financial questions, while only 35% of women achieve this score. Financial literacy is not something that should be left until after school or university, since many Australians will have to make decisions on aspects such as student loans when they are young.
How can you help your child build a good financial base so they can be aware of the consequences of issues like the type of loans they take or the importance of paying taxes when they are due?