The Importance of Financial Literacy

With financial stress on the rise in Australia, financial literacy is more important than ever. Financial literacy equips students with the knowledge and understanding to manage their money successfully. 

Financial literacy will help students plan for the future. Australian’s are living longer and, in 2016, the average Australian will live until they are 82 years old. Therefore, they will need to have more money saved for when they retire. If students understand how and where to invest, it can make their money go further and therefore get the most out of their income.

What is St Edmund’s doing about teaching your child about financial literacy? In Year 7 and 8 Economics and Business are compulsory and is part of the SOSE subject. We teach students about marketing, the very basics of an economy and how a business runs. If you son opts for The World of Money in Years 9 and 10, we cover a huge range of topics from budgeting, various ways to invest their money to insurance. Students can further deepen their knowledge of financial literacy by studying Economics or Business Studies in Year 11 and 12. 

Business and Economics students in Years 9-12 were given the challenge to start up a business for just $20 per student last term. They had to come up with a concept/product, forecast a budget, market their products and then sell their products at Market Day. Students made comments such as ‘I didn’t realise how hard it was to run a business’ or ‘there were so many things that happened we didn’t count on’. Giving students the opportunity to try this type of activity will allow them to take a risk and try something new in a controlled environment. 

Economics students in Year 11 have played the ASX Share Market Game this term. This game gives students ‘$50,000’ on an account, students then buy and sell shares in real time for 2 months. Most students ended the game last week in the green and 2 students made a very good return of approximately 10% over 2 months! These 2 students were ranked in the Top 5 in the ACT, an excellent result! 

Please talk to your son about money. If children learn about the importance of managing their finances from an early age, they will be more likely to be ready for financial challenges in adulthood. 

Kylie Rose (Coordinator of SOSE)

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