Young Australians need to be prepared now for the next major financial shock as the coronavirus pandemic reveals some families do not understand the long-lasting impact of the decisions they are making, experts say.
Financial Basics Foundation Chair Brigid Leishman said hundreds of thousands of Australians have been plunged into financial distress since the COVID-19 outbreak and a lack of personal finance knowledge made them vulnerable to more hardship.
Ms Leishman said personal finance should be a standalone subject in high schools to give young people a formal financial education.
“Financial literacy is a critical life skill,” she said.
“We know from last year’s research that less than one in four young Australians under the age of 25 have a basic level of financial understanding and literacy.
“It’s about knowing how to manage your money, spending, saving, investing, making good decisions.
“We know that some…