Why Parents Must Break the Silence on Money and Start Teaching Financial Skills at Home

Australia’s financial literacy rates are in decline, and our kids are paying the price.

Certified Money Coach and Financial Educator Sandra McGuire, who has over 20 years’ experience in the finance and wealth industry says, “only 28% of teenage boys and a shocking 15% of teenage girls in Australia can correctly answer basic financial literacy questions about interest, inflation, and investing,” 1 McGuire goes on to say “These aren’t trick questions, they’re real-world knowledge our children need to survive and thrive.”

McGuire is referring to the “Big Three” financial literacy questions developed by academics Lusardi and Mitchell, now a global standard for measuring financial knowledge. In Australia, fewer than 50% of adults can answer all three correctly, and the gender gap remains wide: 63% of men are financially literate compared to only 48% of women. 1

The implications are far-reaching. Financial literacy strongly correlates with reduced financial stress, better retirement planning, and even improved health outcomes. A 2025 Frontier Economics report highlights that low financial literacy contributes to greater financial hardship, which in turn is linked with poorer physical and mental health, greater social exclusion, and a higher risk of long-term disadvantage. 2

But McGuire says the impact is even more immediate for families.

“When young people leave school without the financial basics, they’re set up for struggle,” she says. “They get their first job, move out, sign phone contracts, start paying bills (BNPL) but no one ever taught them how to manage money. Parents are often the only financial educators their kids have, and many may feel uncomfortable having these conversations or may not have learnt good money habits themselves.”

So, what can we do, McGuire believes it starts at home, especially during critical life stages like the end of school, starting work, or moving out. She goes onto say “Money is emotional. If we want to raise financially resilient kids, we need to talk about money openly, without shame or secrecy.”

McGuire encourages families to build financial literacy through small, consistent steps:

* Involve teens in budgeting for school events or big holidays.

* Talk through real-life money decisions — from grocery spending to insurance.

* Use trusted tools like ASIC’s MoneySmart or explore her free articles on money management on the Money Wellness website

“The goal isn’t to turn our kids into accountants, it’s to give them confidence, so they feel in control — not confused, anxious, or stuck in cycles of debt.” McGuire says

Despite the growing urgency, McGuire points out that financial literacy is still not a standalone subject in Australian secondary schools. It appears only as part of broader maths and humanities content, and students can miss it entirely depending on their subject choices.

That’s why she’s calling on parents to act now — not just for their kids, but for the generations that follow. “When kids learn how money works, they’re more likely to save, avoid financial stress, and make informed choices about their future. We can’t afford to leave that to chance.”

If you want your kids, or yourself to reach your full financial potential, it starts with education and confidence. Seek support from trusted advisers, coaches, and resources that can guide you and your family toward a stronger financial future.

About Sandra McGuire

Sandra McGuire is a Certified Money Coach (CMC)® and Financial Educator, founder of Money Wellness, and a passionate advocate for improving financial literacy at all stages of life. She helps families, women, and young adults build confidence and make better decisions with their money through education, coaching, and providing simple practical tools.

Contact:

Website https://moneywellness.com.au

Email: Sandra@moneywellness.com.au

LinkedIn: www.linkedin.com/in/sjmcguire

Instagram: money.wellness

Facebook: SandraMoneyWellness

YouTube: moneywellness496

Appendix & resources

Financial Literacy in Australia: Insights from HILDA Data, Professor Alison Preston, UWA business school, March 2020 – University of Western Australia, UWA Public Policy Institute

https://api.research-repository.uwa.edu.au/ws/portalfiles/portal/73668586/Financial_Literacy_in_Australia.ppf

Making cents of it: The Benefits of Improving the Financial Literacy of Australian Children, Frontier Economics, 19 May 2025 https://www.frontier-economics.com.au/wp-content/uploads/2025/05/2025-05-19-Valuing-the-benefits-of-improved-childhood-financial-literacy.pdf

MoneySmart, Australian Government website - helps you make confident money decisions with free tools, tips and calculators https://moneysmart.gov.au/