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A Problem That Shouldn’t Exist: Why 90% of Young People Had Financial Troubles in the Past Year
- bopindustries
- May 9
- 3 min read
A recent study by Monash University found that 90% of young people faced financial
troubles in the past year, and 27% of them used ‘buy now, pay later’ services. [1] Furthermore, 45% of Gen Z admit they have personal debt, at an average of $23,888. [2] It
comes as no surprise then; Gen Z is more concerned about their finances than any other
generation in Australia. [3]
I was in the same boat.
Like most high school students, I started my first job at 15, flipping burgers at Hungry Jacks.
I slaved away for 40 hours the previous week for a measly $10/hr. Even though I wasn’t making much, I had a reason why. I wanted a new PlayStation, which costs $399.
Payday finally arrived. I was on cloud nine and absolutely buzzing and couldn’t wait to head to my local EB Games to get my hands on my reward. I quickly opened my banking app to check the money had arrived. And sure enough, it had.
But I only received $360. I couldn’t believe it.
I asked my mum, ‘where’s the rest of my money’. She shrugged and told me to check my
payslip. And there I saw it. Some organisation called “Superannuation” had stolen $40 from
me.
“What is ‘Superannuation’ and why did it take $40 from me?” I asked my mum. She
shrugged again and told me to ask my dad.
Not a situation unique to me.
Most high school graduates can recite the quadratic formula, explain the juxtaposition in A
Midsummer Night’s Dream, and identify the powerhouse of the cell. But if you ask them to
explain superannuation or ETFs, you’ll likely be met with a blank stare.
Yet 90% of young Australians want to improve their money skills. [3] Nearly half say they feel
overwhelmed and don’t even know where to begin. [3]
The Opportunity That Students Are Begging For
Almost half of Australians (46%) wished they'd learnt how to invest during their time at
school, while 44% wish they'd learnt how to manage their money [4].
So, why aren’t schools teaching financial literacy when students are practically begging for
it? The answer comes down to three key barriers: curriculum, competing priorities, and
teacher workloads.
Firstly, financial literacy is embedded in subjects like maths and business under the
Australian curriculum and isn’t a standalone subject. So even though some financial
concepts might be explored, they are usually confined to abstract calculations and
formulas, rather than practical applications.
Secondly, schools are largely measured by academic performance (e.g. NAPLAN,
ATAR, graduation percentage. So it makes sense that financial literacy isn’t high on
schools’ priority list.
Lastly, and most importantly, teachers are already overworked and
underappreciated. Australian teachers spend an average of 45 hours per week
engaged in work on school grounds, far above the OECD average. [5] And this
doesn’t factor in the countless hours teachers put in on weekends and holidays to
keep up with lesson planning, grading, admin duties, and other tasks. So even if
teachers want to teach financial literacy, they often don’t have the time or energy.
Thinking Outside The Box
That’s why Pluton is doing financial literacy a little differently.
What if we could integrate financial education into other areas of the classroom? Budgeting
doesn’t have to be confined to the maths or business curriculum. (In fact, budgeting is more
about psychology than numbers.)
For example, what if we:
Covered budgeting in history class about the decolonization in Asia and Africa post
World War Two?
Let students analyse scam emails and messages in English class to understand the
use of language features in persuasive communication?
Draw parallels between the strategies for prevention and control of infectious
diseases and the strategies for investing?
At Pluton, we’re creating resources and activities to help teachers integrate financial literacy
into their existing curriculum. But we need your help!
What resources would make it easier for you to teach financial literacy? How can we support
you in making money management a core part of your lessons? Let's work together to
prepare the next generation for the financial challenges ahead.
Reference List
[1] Walsh, L., Cutler, B., Deng, Z., & Huynh, T. B. (2023, February 2). In 2022, 90% of young
people had financial troubles, and 27% used ‘buy now, pay later’ services. Monash Lens.
[2] Canstar. (2024, February 28). How much debt does the average Australian have?
australian-have/
[3] Australian Securities and Investments Commission. (2023, November 20). Gen Z more
concerned about finances than any generation in Australia [Media release 23-302MR].
gen-z-more-concerned-about-finances-than-any-generation-in-australia/
[4] Kwiet-Evans, N. (2022, February 17). The 5 skills Australians wish they had been taught
in school. Finder. https://www.finder.com.au/news/5-skills-australians-wish-they-had-been-
taught-in-school/
[5] Australian Education Union Victorian Branch. (2019, June 20). Australian teachers have
higher workloads, fewer resources: OECD report. Australian Education Union Victorian
resources-oecd-report
