Ensure you never miss an issue of the
real estate business bulletin
Give our kids finance lessons, govt urged

Give our kids finance lessons, govt urged

by Nick Bendel 0 comments

Teaching financial literacy at schools will produce a fairer and more competitive financial system, according to Yellow Brick Road.

The wealth group’s submission to the Financial System Inquiry urged the federal government to add financial literacy to the national curriculum.

“An informed and educated population is crucial to the operation of a good financial system,” Yellow Brick Road said.

“If we expect Australians to build sufficient wealth to retire comfortably in their own home then we have to ensure people know how to make the right decisions to get them there.”

The group said students should be taught the fundamentals of financial management so they could learn how to manage a mortgage, insurance and superannuation later in life.

“Financial literacy skills and the ability to access affordable financial advice are critical to assisting people to navigate these big decisions skilfully,” it said.

ANZ also highlighted the benefits of financial education in the bank's submission to the Financial System Inquiry.

“The inquiry should endorse the importance of improving financial literacy as a means to equip people to make better choices themselves, and as a complementary and worthwhile approach to consumer protection regulation,” the ANZ submission said.

Meanwhile, the submission filed by the MFAA argued it was brokers, not the major lenders, that were driving competition in the mortgage market.

The association said that the big four banks are so dominant that they compete to maintain market share rather than to survive. This fails to produce “systemic or game changer innovations”, the MFAA added.

According to the MFAA, 13 per cent of borrowers choose smaller lenders when they deal directly with the lender, but 27 per cent choose smaller lenders when they go through a broker.

Give our kids finance lessons, govt urged
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?