The National Financial Capability Strategy - can it help change the way we see our finances?
For many, managing money can either feel like a breeze or a nightmare. But thanks to a new strategy launched by the Minister for Revenue and Financial Services, The Hon. Kelly O’Dwyer MP, controlling what goes on in your bank account is about to get a whole lot easier.
Launched on August 21, the 2018 National Financial Capability Strategy aims to help Aussies across the country get better control over their financial lives by improving skills in:
- Managing money day to day
- Making informed decisions
- Planning for the future
“We want all Australians to be in control of their financial lives. The Strategy guides action across the government, business, community, education and research sectors to support enhanced financial capabilities in individuals, families and communities,” said Minister O’Dwyer.
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According to the Australian Financial Attitudes and Behaviour Tracker, more than 1 in 3 Aussies find dealing with money stressful, while only 60% feel on top of their finances.
Modelling by ASIC indicated that if financial capability levels for all Aussies were improved, over the next 30 years consumer wealth and consumption would increase by $212 billion (2017 dollars).
“The 2018 National Financial Capability Program drives programs and initiatives that make a difference in people’s lives. We want more Australians to access information and guidance they can trust to ensure everyone can make informed decisions,” said ASIC Chair, James Shipton.
One of the stronger focus points of the strategy is a commitment to ensuring that women become more confident and engage more with their finances.
Older and Indigenous Aussies have also been promised to get the support they need and have access to appropriate financial products and services.
“The financial sector as a financial community should be engaging in practices that promote fair consumer outcomes. We want to see more Australians in control of their financial lives,” said Shipton.
A final focus of the strategy was to assist younger Aussies when it came to making better informed decisions about their money.
And it appears the new initiative couldn’t have come at a better time, as recent findings by the Financial Planning Association (FPA) revealed that a cashless society might be impacting the way young Aussies value money.
In fact, the report revealed that 66% of Aussie parents agreed that digital money is having a negative impact on their children, while three in five believed that the ‘invisible-money generation’ are destined to be financially worse off than their generation.
However, the data went on to say that parents who regularly sought out advice from a financial advisor were able to help their children create a positive relationship with money.
“A stand-out insight from our research this year is that parents who seek the advice of a financial planner create a lasting positive legacy for their kids too, in matters of money and life,” said FPA CEO, Dante De Gori.
And one of the first ways to get your finances off to a positive start is with a great bank account. Our bank account comparison tool can help you find the right bank account that best suits your needs.