Despite recognition of the importance of financial literacy education for young Australians, it is clear that financial literacy levels for young Australians – and Australians more broadly – are concerningly low. 

The long-term benefits of financial literacy – especially from early education – have not been well quantified to date, limiting evidence-based decision-making for policymakers. This analysis evaluates the benefits of improved financial literacy from early education. It identifies the wide array of benefits associated with enhancing financial literacy, and where feasible, illustratively evaluates select benefits of improved financial literacy. 

The report identifies several key economic and social benefits linked to stronger financial literacy, such as higher productivity, improved retirement planning and better mental health outcomes. For each benefit identified, a clear causal link was established from improved financial literacy to changes in community outcomes.

The report also provides illustrative estimates across two indicative case studies related to potential reductions in public spending on hardship assistance programs and reduced health service usage related to improving financial literacy.