A professional learning package has been developed to help teachers to incorporate financial literacy into the core curriculum from Kindergarten to Year 10.
What is consumer and financial literacy?
Consumer and financial literacy is about having the knowledge and skills to make good decisions about using and managing your money. As consumers, we also need to be able to make responsible choices and understand our rights and responsibilities.
The Consumer and Financial Literacy Framework defines consumer and financial literacy as:
The application of knowledge, understanding, skills and values in consumer and financial contexts and the related decisions that impact on self, others, the community and the environment.
Why is it important for students to learn about consumer and financial literacy?
Consumer and financial literacy is a key life skill. The financial world is characterised by a wide range of choices and often high complexity, and as consumers we all need good financial literacy skills to take advantage of this dynamic environment.
Providing young people with these skills helps to establish good habits and responsible attitudes from an early age. It helps foster an attitude to managing money that can enhance their long-term financial security and lifestyle.
Consumer and financial literacy skills are important for young people because they are being targeted as consumers at an increasingly early age - by sophisticated advertising and marketing campaigns. Young people may also face complex financial choices, such as finding the right mobile phone plan. And as 18 year olds, they are likely to have access to credit and loans in a way that would have been unheard of 20 years ago.
Young people are interested to learn more about money issues. The Financial Literacy Foundation's report, Financial Literacy - Australians Understanding Money, found that young people are particularly interested in learning more about issues such as budgeting, saving, managing debt and recognising financial scams.
Isn't financial literacy already being taught in some schools?
Yes. However, until now consumer and financial literacy has not had a unified, systematic approach. Various consumer and financial content, courses and programs have previously been included in State and Territory curriculums. Now the nationally agreed Framework provides an integrated cross- curriculum approach for all students from Kindergarten to Year 10.
Consumer and financial literacy will be integrated in curricula and programs across English, Mathematics, Science, (Humanities - Business, Commerce, Economics, Technology and Enterprise) Civics and Citizenship and Information and Communication Technology. This will allow all Australian students in their compulsory years of schooling to develop knowledge and understanding, skills and values in consumer and financial literacy.
How will the Professional Learning package assist teachers?
The Professional Learning Package has been designed to build the capacity of teachers in primary and secondary schools to engage students in consumer and financial literacy.
The professional learning encourages and supports teachers to look broadly at the curriculum and identify opportunities across four broad areas of study:
- understanding money
- consumer education
- personal finance, and
- money management.
These areas of study do not create new layers of work. Instead, they provide teachers with a lens to add value to quality teaching and learning.
The Professional Learning Package for teachers uses the comprehensive and innovative program of the primary schools in the Maitland region of New South Wales as a case study. The program is a good example of the benefits of integrated learning across primary schools. There are other innovative programs in many schools and these will continue to grow and embed the learning in consumer and financial literacy.
What is in the Professional Learning Package?
The Professional Learning package has been developed to help teachers to introduce consumer and financial literacy in their schools. It includes:
- A facilitator's guide, including training modules for workshops with teachers
- A teacher's guide, including a reference CD-ROM
- A DVD looking at how consumer and financial literacy has been successfully integrated in the curriculum through enterprise learning in the Maitland/Sydney regions.
The support materials and resources for teachers are available at a new website, www.financialliteracy.edu.au, hosted by Curriculum Corporation.
What other support will teachers receive?
National training on the consumer and financial literacy framework will be provided for curriculum officers, professional associations and facilitators across all education jurisdictions. This will give key participants a deeper understanding of the skills and strategies needed to deliver training to all teachers, especially for teachers in rural and remote regions.
Teachers of financial literacy will receive training through the Department of Education, Employment and Workplace Relations' Australian Government Quality Teaching Program (AGQTP).
AGQTP officers have planned a range of professional learning activities for primary and secondary school teachers across Australia. These learning activities include workshops, seminars, conferences, forums, and web-based training and video conferencing for teachers in metropolitan, regional, rural and remote areas.
How will consumer and financial literacy be included in the curriculum?
Consumer and financial literacy will not be an extra subject. It will be integrated into English, Maths, Science, Business, Commerce, Economics, Technology and Enterprise, Civics and Citizenship, and Information and Communication Technology.
Two abridged examples of integrated units for upper primary and secondary school are given below. For more detail on curriculum integration and support materials see www.financialliteracy.edu.au.
Upper Primary school - applying consumer and financial literacy
Purchasing an electronic game
Task: Students investigate the cost of an electronic game for the class to use. Information is collected and analysed from the Internet and catalogue/print media. Skills in budgeting and enterprise are developed. Scam websites are accessed for information on consumer scams. |
| English | The language of saving, budgeting, spending |
| Maths | Calculations for buying, spending, budgeting |
| Information & Communication Technology | Spreadsheets for budgets, design of promotional material |
| Art | Design of promotional material |
| Studies of Society and Environment/ Human Society and its Environment | Understanding social implications of overspending, greater awareness of needs and wants in different parts of the world |
| Science | Environmental and health issues of the methods used to raise funds and production of the resources |
Secondary school - applying consumer and financial literacy
Mobile phones |
| English | Understanding contracts and details of plans, analysing advertising messages, writing a letter reporting a complaint or enquiry |
| Maths | Comparing rates and benefits of different phones and plans, surveying to identify essential/important features, comparing costs of different features, e.g. TV competitions |
| Information & Communication Technology | Accessing comparative cost/feature websites, mobile phones as a source of digital access for people in countries lacking widespread computer access |
| Design technology | Influences on design, examples, future trends |
| Studies of Society and Environment | Distribution/growth of mobile phone usage, map of international phone usage |
| Science | Recycling of materials, environmental initiatives in designing new generation phones |
How can parents foster financially literate attitudes and behaviour in their children?
Parents have an important role to play in teaching their children about money, and the best place to start is at home. By setting a good example and following some good, basic money management habits, parents can reinforce the lessons their children will learn at school.
Parents can involve their children when it comes to managing money. For example, whether it's the family budget or pocket money, parents can talk to their children about where money comes from and where it goes. And they could show their children how you save money and talk about the benefits of saving.
For more information and tips, see the Teaching your kids about money information sheet, which is part of the Women understanding money information series.
What role can the community play to support young people's consumer and financial literacy skills?
There are opportunities for students, teachers, schools, parents and the wider community to work together to build and enhance their collective knowledge, understanding, skills and values of consumer and financial literacy.
The National Professional Learning Strategy(PDF 130KB) addresses how to build on these relationships for long term sustainability. The program implemented by primary schools in the Maitland region is an example of strong community partnerships which have developed to support young people over the last 15 years.
What is the Consumer and Financial Literacy Framework?
The Framework outlines the knowledge, understandings, skills and values in consumer and financial education that young people should acquire at school from Kindergarten to Year 10.
It was adopted by the Ministerial Council on Education, Employment, Training and Youth Affairs (MCEETYA) in 2005.
How was the National Professional Learning Strategy developed?
The MCEETYA working party identified a need to build the capacity of teachers to integrate consumer and financial literacy into the curriculum.
The Financial Literacy Foundation brought together a Reference Group to develop a strategy to meet this need. The Group had representatives from State and Territory education jurisdictions, Independent and Catholic School sectors, the Department of Education, Science and Training, and Consumer Affairs and Fair Trading authorities.
The strategy was finalised in August 2007.
Download: National Professional Learning Strategy(PDF 130KB)
What is the Curriculum Corporation?
The Curriculum Corporation is an independently operated, not-for-profit organisation owned by all Australian Education Ministers.
The Curriculum Corporation successfully tendered for developing the Package of the consumer and financial literacy professional learning materials.
What is the Australian Government Quality Teacher Program (AGQTP)?
The AGQTP is a Commonwealth Government program that aims to raise the quality, professionalism and status of Australian teachers and school leaders. It does this primarily by providing professional learning and development opportunities.