Financial education 'should be compulsory'

An occupational psychologist believes that financial education should be made compulsory within schools.

Kim Stephenson - author of Taming the Pound: Making Money Your Servant, Not Your Master – suggested that children would benefit in later life if they learned how to budget sensibly.

He said the subject would need to be integrated into the curriculum sensibly if it is to have any longevity and it needs to be taught in an interesting way.

Many Aussies have adopted a more cautious approach to their finances in recent years, although the country is still sitting on a credit card debt in the region of $36 billion.

A lot of people simply lack knowledge on the benefits of opening savings accounts and planning their finances more thoroughly.

Mr Stephenson feels that youngsters can learn from people's real life experiences when it comes to handling money.

"There's plenty of evidence from occupational psychology and business generally that the greater the 'fidelity' of the simulation (i.e. the closer to real life) the greater the learning," he remarked.

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