The mission behind kids get money
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Improving financial literacy in youth could deliver not only long-term economic returns, but significant social benefits
At Kids Get Money we believe that teaching kids about money isn't just about dollars and cents. It's about empowering the next generation with the tools they need to thrive.
Despite rising levels of income and wealth in Australia, around 37% of adult men and 52% of adult women don't understand key financial concepts like interest rates, inflation and risk diversification.
And while it seems logical that comprehensive and equitable financial literacy education for our youth could provide significant benefit to individuals, communities and the broader economy, the long term benefits have not been well quantified to date, limiting evidence-based decision-making for policymakers and investors.
That's why we engaged Frontier Economics to evaluate the benefits of improved financial literacy education for Australia's young people.
Investing in childhood financial literacy is not just a moral imperative - it's one of the smartest, most scalable investments we can make in Australia's future. Every dollar spent on improving financial capability has the potential to save billions in future healthcare, welfare, and social costs.
- Annette Rose, Founder & CEO, Kids Get Money
The report identified Several key economic and social benefits
Making Cents of It: The Benefits of Improving the Financial Literacy of Australian Children (report found below) identifies several key economic and social benefits linked to stronger financial literacy, such as higher productivity, improved retirement planning, and better mental health outcomes.
The report also provides illustrative estimates across two indicative case studies related to potential reductions in public spending on hardship assistance programs and reduced health service usage related to improving financial literacy:
Reduced Health Service Usage
Better money skills reduce financial stress, improve decision-making, and encourage proactive health measures — like investing in private insurance and preventive care. The analysis indicatively estimates that if financial literacy nationwide were instantaneously lifted to a perfect score on the ‘Big Five’ financial literacy questions, hospitalisations of Australians aged 65 and over could fall by 900,000 per year. This translates to annual health savings of $9 to $11.6 billion, or $76.27 billion over a decade (present value, discounted at 7%).
Reduced Hardship Assistance Costs
If financial literacy across the population were instantaneously lifted to a perfect score on the ‘Big Five’ financial literacy questions, the Commonwealth Government could potentially benefit to the tune of around $1.04 million per year, or $7.80 million in present value terms over 10 years (discounted at 7%) via reduced spending on its Financial Wellbeing and Capability program.
Financial capability has far-reaching implications beyond personal finance — it can influence everything from public health costs to the long-term sustainability of government support programs – such as the hardship assistance scheme expenditure. This analysis provides a clearer picture of the potential public and personal value from investment in financial education.Get The Full Report
- Alexandra Humphrey Cifuentes, Economist, Frontier Economics
Kids Get Money is seeking partners to expand our efforts across our key priorities including our flagship Year 9 'Get Financially Lit Challenge', research and first people's youth financial literacy education programs.
To get involved, get in touch today.
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