The financial literacy of young Australians: An empirical study and implications for consumer protection and ASIC's National Financial Literacy Strategy

The Australian Securities and Investments Commission (ASIC) has stewarded the Australian National Financial Literacy Strategy since 2011. Financial literacy is increasingly recognised as an essential part of consumer protection, complementing traditional consumer protection mechanisms such as disclosure. Increased financial literacy has significant benefits including the potential to reduce the need for regulatory intervention and enhance economic participation. While much attention has focussed upon the financial literacy of adults, young people are active consumers and it has been suggested that their levels of financial literacy are not consistent with their extensive consumer activities. Currently a research gap exists regarding the financial literacy levels and attitudinal/behavioural aspects of young people's financial decisionmaking. This article discusses the results of a financial literacy survey of senior students in Australian secondary schools. The survey tested six key areas of financial literacy skills, including their knowledge of consumer rights. The analyses tested for demographic factors and attitudes that are related to financial literacy. The study contributes important findings that can assist ASIC's ongoing work promoting consumer protection through financial literacy policies and can also assist in the development of financial literacy education programs in schools.