According to research undertaken by Westpac for its 2018 financial literacy study, nearly three-quarters (71 per cent) of the 600 Australians aged 15–20 said that they worry they are making bad financial choices.
Further, the survey found that nearly a third (63 per cent) did not feel prepared or confident to apply for a loan, while more than half were not confident about understanding superannuation (53 per cent) or filling out a tax return (59 per cent).
Despite this, the big four bank found that the vast majority of young people wanted to learn more about managing their finances.
Nearly all respondents (96 per cent) said they were actively looking for financial information and advice, while 81 per cent said they want to learn how to manage their finances in the “real world”.
To help meet this demand, Westpac has now partnered with Year13 to offer a free online financial literacy program which provides young Australians with an educational resource to help them understand the financial decisions they may face.
The FinLit program enables users to access information on topics such as moving out of home or saving to travel and includes a quiz to help identify gaps in knowledge.
Speaking of the program, Felicity Duffy, Westpac’s head of segments, youth, millennial and women, said: “Our research shows there is an opportunity to empower young Australians to help them be more financially confident when it comes to starting their first job or moving out of home.
“As Australia’s first and oldest bank, we’re committed to helping young people set themselves up for future success. It’s important that we give young Australians access to trusted and reliable resources to help them understand future expenses and information on how they could save their money effectively.”
Saxon Phipps, founder of Year13, said that the platform was “excited to collaborate with Westpac and help make a meaningful impact on the big life choices young Aussies need to make”.
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Annie Kane is the editor of The Adviser and Mortgage Business.
As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts.