Personal Finance Should be Part of Core Education

I believe personal finance should be a core subject taught to our children at school. We should teach how to manage and budget money, the concepts of savings and compound interest, and the risks of credit and deferred payment. Finance and money management education should be threaded through each year of schooling. I think it would offer more practical value – and a better return on investment – than some of the traditional subjects taught.

An opinion piece in The Age by Liora Miller, “Is PayPass the enemy of the young?” reflects on some of the risks of tap and go payments, especially for young people.

Australian Tax Office research this year reveals that only one in five Australians still prefer using cash for purchases.

Last week I bought lunch from a sandwich shop. I paid with cash. The look of surprise on the server’s face was clear; to the point where we both made a joke about the rarity of somebody paying with ‘real money’ as opposed to PayPass tap and go. In Australia, tap and go is essentially the default.

Cash use in Australia has fallen by a third in a period of six years.

That’s about how long tap and go transactions have been available, and I would think the next third of cash usage will decline more rapidly than another six years.

When I use tap and go, I take the extra step of entering the transaction into YNAB on my phone. YNAB’s direct bank import features don’t work with Australian banks but I consider that a feature because entering each transaction keeps me connected to my money and my budget. I recognise, however, that I’m an outlier. Most people are not taking a similar extra step – it’s spend and forget.

A cashless society in the near future appears to be an inevitability. We need to focus on ensuring young people understand the implications of deferred payment.

This is the key point of the article, but unfortunately, Miller fails to suggest how this might happen. This brings us back to my initial premise: that we as a society need to get serious about financial literacy.

I am Treasurer and Director of Midlas, a not-for-profit organisation that offers financial counselling as one of its key community support services. The government provides funding support to enable Midlas to offer this service. Yet demand is outpacing supply, and this is a common refrain across all the providers of financial counselling.

As great as it is that government provides financial support to assist organisations such as Midlas help people in financial stress, the policy settings are wrong. Just like medicine, where spending on prevention is cheaper and more effective than spending on a cure, spending on financial education would be more effective and deliver greater good than spending on help after the damage is done. Avoiding financial stress would lessen the prevalence of issues that often stem from financial stress, such as illness and poor mental health, relationship damage, homelessness, and drug and alcohol abuse. Not only would this benefit the individual but it would help broader society who share the negative impact of these societal problems.

Through us, the government needs to get serious about teaching our kids about personal finance and money management. The growth of tap and go is a lead indicator of a problem that may come to bite us in years to come. We should act before personal indebtedness becomes a national plague.

On Charlottesville, VA

I am not an American, but my father and my siblings were born and lived in the USA. I have visited the country a number of times. I have spent time in Virginia, notably Lexington, which is about 70 miles away from Charlottesville, the town that has been tragically in the news this past week. While I don’t have the level of connection to the place that a United States citizen has, I do watch with interest and feel that I have at least some level of understanding of the American psyche.

From my perspective, what I saw in Charlottesville was a collection of white men who have been radicalised to the point of fanaticism and enabled by political leadership to intimidate and strike fear in others to their own ends. In a modern country it should never be reasonable for civilians to put on body armour and walk the streets with automatic machine guns. Carrying Nazi flags, performing Nazi salutes, and walking with burning torches1 echoes many sad and inglorious historical moments, from Hitler and WW2 to the KKK and acceptance of slavery (and the power imbalance in favour of white people that that confers).

I can only imagine what would have happened if non-white people had walked the streets similarly armed and garbed. I think there would have been an even more extreme response; which in itself highlights a level of underlying, unspoken racism that permeates the culture. I can’t help but think that if roles were reversed, and it were black people carrying machine guns in the street, that it would be seen as an uprising. Based on recent US police behaviour it might also have been possible the police would have been willing to shoot to kill.

Next we have the horrible situation of a young man driving a car at speed into a laneway filled with people. Such behaviour cannot be condoned and the fact that some are attempting to mount excuses and justifications is frightening in itself, particularly if they believe their own professions. That was an act of terrorism, fuelled by hate, which i assume was itself fuelled by the fear of losing power and relevance in society. As far as I can tell, that man, and his equivalents, are fearful that their position in the world is being disrupted and their reactionary response is to imbibe hate and act with extreme prejudice.

As for the President, I am of the view that he has incited and encouraged this vein of hate, then turned a blind eye to the subsequent despicable actions of his acolytes. It took him three days to speak out against the actions (via a prepared speech), and then a day later he couldn’t live with that being his official position so he backtracked, showing his true colours. That he should be President of the USA is an entirely strange and sad situation.

A key reason (but not the root cause) for this uprising is said to be in honour and respect of General Lee, a man of regard for Southerners. Yet times change, and who we should and do venerate must also change. The problem is, enacting that change means rebalancing the power relationship amongst the citizens of the United States, and particularly the South. As a result those threatened most by such change2 and who are most at risk of ‘losing’ as a result of any rebalancing are lashing out with extreme aggression in a sad and sorry attempt to maintain the status quo.

Change will happen. The clock cannot be turned back. Time and culture moves ever forward, even though this Charlottesville incident represents a step back. In the end I believe the tide of change will win out. I genuinely hope that tide brings equivalency to all citizens of the United States, irrespective of the colour of their skin, and that peace wins out.


  1. Albeit tiki torches that look like they were bought at Lowe’s and probably made in China. 
  2. That is, white men.