A new report from NAB Economics reveals that Australian teenagers possess a strong level of confidence in their financial skills, with a significant interest in expanding their knowledge beyond what is offered in school. The data shows high school students feel most assured in areas including opening a bank account, tracking expenses, managing money, creating a budget, and setting financial goals, with confidence levels ranging from 62% to nearly 70%.
Claudia Dior, a banker from NAB, stated that the research challenges common assumptions about teens and their financial understanding. She noted, “Contrary to popular belief, the research shows that today’s teens are relatively confident when it comes to talking about money.” Dior observed a shift in young people's approach to banking, with more informed questions being asked about interest rates and long-term financial planning.
Melbourne high school student Hugo Black serves as an example of this growing financial awareness among youth. The 17-year-old, who has held multiple jobs over the past two years, attributes his financial savvy to early lessons in money management imparted by his parents. “My parents taught me the importance of being aware of my spending habits early on by helping me set savings goals and budget my pocket money,” Hugo explained.
Hugo plans to self-finance a gap year in Europe and continues to save between 30% to 60% of his income from his jobs in hospitality and babysitting. Following his time abroad, he aims to save for a car and eventually begin investing in a share portfolio to work towards purchasing his first home.
NAB's Claudia Dior offers several recommendations for parents to enhance their children's financial literacy at home. These include using technology to track spending habits, involving children in grocery shopping as a practical lesson in economics, and transforming bill-paying into an educational experience to prepare them for the responsibilities of managing household finances in the future.
This data is part of the NAB Educations Insights Special Report Part Three.