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Savvy 2020 Parents’ Financial Literacy Survey

Survey of 1000 Australians learns attitudes towards financial literacy
Published on December 10th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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   Commentary by 
Adrian Edlington

Guest Contributor

Adrian Edlington
Adrian Edlington is PR & Communications Manager at Savvy. With a keen interest in personal finance, car loans, the mortgage industry, cost of living pressures, electric vehicles and renewable technology, Adrian's research includes conducting primary data surveys and analysis of up-to-the-minute secondary Australian data sources. His work on behalf of Savvy has been featured on ABC.net.au The Conversation, the Sydney Morning Herald, AFR, News.com.au, The Age, Herald Sun, Adelaide Now, SBS On The Money, 7News, Car Expert, Which Car, Drive.com.au, Auto Talk, CleanTechnica, The Latch, Newcastle Herald, The Examiner, Illawarra Mercury, Professional Planner, New Idea, Canberra Times, Bendigo Advertiser, The Courier, Evee.com.au, MSN, The Australian, Stockhead, Yahoo Lifestyle, Smart Company, Yahoo Finance, Money Management, Proactive Investors, Glam Adelaide, Your Life Choices, Investor Daily, Real Estate Business, Homely.com.au, Money Mag, Yahoo News, Elite Agent, The West, Crikey.com.au, Yahoo Sports, AIB.edu.au, Domain.com.au, Nine.com.au, Mortgage Business, The New Daily, MPAMag, and NestEgg.com.au. In his spare time, Adrian enjoys mountain biking and business podcasts.
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2020 Parent's Financial Literacy Survey Infographic

Takeaways from the Savvy 2020 Parents’ Financial Literacy Survey 

Many parents consider it the “other” difficult talk with their kids – finance and money. What are some of the takeaways from the Savvy 2020 Parent’s Financial Literacy Survey, and what can parents do to instil good financial habits in their children from a young age? 

32% of parents have never discussed superannuation with their children 

There will be a rude awakening for these children when they see some of their first pay being diverted toward superannuation and not knowing why. Superannuation and investing for the future should be discussed as young as possible – seeing a financial adviser may help, as it allows you to get a grasp on financial literacy and in the years to come, the adviser may be able to assist your children with discount or even free advice. 

30% have discussed good and bad financial habits with kids 

Discussing good and bad financial habits with kids is a must, especially when they start saving for major assets such as cars or homes. One tip is to use games. Monopoly is a tried-and-true example – concepts of asset ownership, paying rent, and asset finance – such as when they need to mortgage properties – are all included as base gameplay. Video games use in-world currencies that require players to “grind” or complete repetitive and/or specific tasks to level up and unlock special items.  

You can teach them about personal loans by lending them money to buy “epic” items but having to do chores to pay off the debt – with interest.  

Most parents have never discussed entrepreneurship and business management 

If your child has moved passed the “firefighter” or “astronaut” phase of future jobs (though those are two fine professions) ask them if they have wondered about going into business for themselves. Easy entrepreneurship lessons for kids can take place in the school. They could sell cakes or cookies for example. (Remember to deduct the cost of materials after the fact!) You can also set prices for chores around the house – the more chores they complete, the more money they make. When they’re ready, they can advertise around the neighbourhood to help others do their chores.  

61.5% of children have a savings account 

For most of us growing up with primary school bank accounts, we rarely saw how much money was in our accounts until it was “bankbook day.” Now most school age kids have internet access and smartphones – these too can be used to teach kids financial literacy. 

For primary aged kids, you can help them with managing their pocket money using apps and debit cards with apps like Rooster Money and Spriggy. 

Over half think the school should teach kids about finance and economics 

Though there is a school curriculum around finance and economics in Australia, it depends on the teachers and faculty to promote learning – although parents such as you can push for it too. Most learning about finance and economics has to be in the home – using textbooks, videos, games, and other activities. Ask your financial adviser if they have materials suitable for children to learn about finances. 

Savvy - 2020 Financial Literacy Survey (n =199) 

Nationally representative survey of 199 adult Australians, aged 18 and over. Conducted by Octopus Group, on behalf of Savvy.

Completion date: 15/02/2020

Age groups:18-24, 25-34, 35-44, 45-54, 55-64, 65+

Gender breakdown: male n=100, female n=99, non-binary /prefer not to say n=0

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Savvy is one of Australia’s largest online financial brokers, focusing on personal and commercial financial products. Founded in 2010, the firm has seen rapid growth, a testament to their provision of market leading rates and reaching customers with the latest in media and technology. Savvy is a proud supporter of Kids Under Cover, a charity assisting homeless and at-risk youth to strengthen their bonds to community and education. Savvy was named one of BRW’s fastest growing companies in 2015.

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