Ah, inflation! Those delightful little numbers we love to see in our bank statements, steadily rising like that one sourdough starter nobody is daring to claim. According to the latest data from the Australian Bureau of Statistics, consumer prices shot up 4% last month. A perfect time, of course, to start teaching kids about financial literacy, because who wouldn’t want to first learn how to juggle their finances while feeling the joyful grip of impending monetary doom?
Top economists are now predicting a couple of interest rate hikes before the year wraps up—because nothing says “fun financial future” quite like watching the cost of living balloon like a birthday party gone wrong. Following the Global Financial Crisis of 2008, schools have been thrust back into action, attempting to arm our youth with financial wisdom. Only this time, instead of “How to Lose a Million Dollars,” they might as well subtitle the class, “Preparing for the Economic Apocalypse.”
Enter the PISA 2022 Volume IV financial literacy assessment, which revealed that while many teens learn to manage their pocket money (or the increasingly rare allowance), they still struggle to master the basics of financial decision-making. OECD’s Mathias Cormann was quick to point out our kids need to be “better equipped” to deal with the complexities of modern financial fraud. In other words, let’s ensure they can at least navigate a scam email before they even think about investing in crypto.
Meanwhile, socio-economically advantaged students are outshining their less fortunate counterparts by a solid 12% margin. Quite the score for privilege! It appears that disadvantaged kids not only ace the art of financial illiteracy but also miss out on the basic school lessons about money management. But look on the bright side; they might just become your next viral TikTok sensation for the latest “What Not to Do with Your Money.”
Financial Literacy: The Stand-Alone Superstar We Need
Now, as far as delivering financial literacy goes, our dear CEO and Director of Financial Basics Foundation, Katrina Samios, proposes we treat this as a stand-alone subject. Because, if budget spreadsheets during Math class are anything like watching paint dry, we could definitely spice things up a bit. Samios suggests focusing on real-life skills instead of formulas—because honestly, what kid ever needed to calculate the area of a triangle after high school? Spoiler: none!
If we want the next generation to actually give a hoot about budgeting and saving, we need to craft lessons that don’t induce mass boredom. Instead, let’s create a financial literacy course that’s so relatable, even your pet goldfish will start contemplating investment strategies. Remember, the key is to create a warm environment for learning. If they want to invest their allowance in Beanie Babies, so be it. They can learn by doing—and then face the consequences together!
Making Money Fun: The Gaming Solution
Who knew learning about money could be as exhilarating as blowing up virtual budgets in a video game? A recent ING survey indicates that 71% of Australians think gaming could teach us a thing or two about finances. So here’s our new plan: by saving “Simoleans” in The Sims or trading turnips in Animal Crossing, we’ll all become financial wizards before we even hit adulthood. Who needs a financial advisor when you can learn from cartoon vegetables?
Matt Bowen from ING recognizes that gaming might be the key to financial wisdom for future generations; a sort of secret financial school that parents had all along. After all, nothing quite teaches kids about money management like keeping their characters in the black and not going bankrupt while building extravagant homes with imaginary money.
Gamification—Because Learning Shouldn’t Be Boring
In an astonishing revelation, a UK survey found kids feel that money lessons would be more fun with “games” and “jokes.” Banqer, an online banking simulator for schools, decided to combine these elements, providing an interactive banking experience. Because if financial education doesn’t involve some gamified fun, then what are we even doing, right? Let’s just pray it’s not more math sheets, because goodness knows where that leads.
Since being unleashed in 2014, Banqer has managed to teach over 300,000 students about financial responsibility—an impressive feat for a program that started out as mere digital chaos. Simon Brown from Banqer emphasizes that this isn’t merely a dose of basic finance but rather the encouragement of sustainable money habits. Consider it like planting a money tree but without the terrifying risk of sudden deforestation.
Empowerment Through Education: The Talk Money Revolution
Another somewhat miraculous initiative is the Talk Money program launched by the Ecstra Foundation. Launched in 2022, this program has already dazzled over 262,000 students in 1,125 schools. Teachers report a significant boost in student financial knowledge and confidence—things that might have sent past generations into a spiral of discomfort at the mere mention of talking about money.
Dr. Tracey West, the financial education sage of Ecstra, reveals that the habits we form at a young age shape our financial lives. If previous generations treated money discussions as taboo, this new wave is all about having the confidence to say “no.” Yes, kids, feel free to decline that overpriced coffee when the peer pressure hits. Who knew saying “no” could empower them toward good financial health?
And so, as we guide our young ones through this maze of modern finance, the ultimate lesson is clear: mastering money isn’t just about balance sheets; it’s about confidence, creativity, and perhaps a hint of video game wizardry. Together, we can ensure that the next generation feels like they can handle whatever inflation throws their way—even if that means dodging the proverbial financial minefields with a controller in hand.
