Contact us
Making the case for financial literacy
Advice|Author Ant Dureau
19 September 2019

Improving financial literacy is key to helping Australians reach their financial goals and achieve a more comfortable and secure future.

The financial world is becoming ever more complex and we have important decisions to make. How much do we put into our superannuation? How much can we afford to borrow to buy a home? How much insurance should we have?

If we don’t have a base knowledge in these areas, how can we hope to make informed decisions?

To promote financial literacy, we’ve produced a series of short, educational videos featuring maths whiz, Adam Spencer. Watch the video above to see an example.

We’ve developed the series based on areas where our customers have the most questions, and you’ll see the videos throughout our website.

Financial literacy is no silver bullet, however. Studies show that while people who are better with their finances are more financially literate, by itself greater literacy doesn’t make people better with money. Good money behaviours like the ability to save and follow a plan are also vital.

Perhaps the most important thing about good financial literacy is that it’s associated with being more willing to address financial issues and getting your finances in order.

Have you heard the one about the person who spends time cleaning the house before the cleaner arrives?

A lot of us have similar feelings about our finances. We don’t like people to see how disorganised we are and we’re not prepared to get help until our knowledge of money and our finances are at least presentable.

We know from experience that when our customers grow in understanding of their finances, they ask more questions and are more likely to seek professional advice. Also, the more they understand the advice presented to them, the more likely they are to stick with their financial plan through thick and thin.

But we also know that people lead busy lives and it’s hard to find the time to sit down and learn. So we’ll try to make learning engaging, fun and bite-sized, like Adam’s videos.

It’s a small step on a long road, but we’re committed to the journey. Please share the videos with your family and friends.

Ant Dureau is AMP's Chief Client Officer