Financial Literacy

Policy

This policy outlines the requirements for the delivery of financial literacy education in Victorian government schools.

Summary

• Every Victorian government school must deliver financial literacy education as part of the Victorian Curriculum through the Economics and Business and Mathematics learning areas.
• Victorian government schools cannot provide a School Banking Program from an Authorised Deposit-taking Institution (ADI), such as a bank, credit union or building society.
• Victorian government schools are also prohibited from:
  • allowing an ADI to deliver any form of financial literacy education to their students
  • using learning and teaching resources created or sponsored by an ADI to provide financial literacy education to students.

Details

Under the minimum standards for school registration, every Victorian government school must deliver financial literacy education as part of the Victorian Curriculum (version 1.0), specifically:

• in the Economics and Business learning area (Levels 5–10), through the ‘Consumer and Financial Literacy’ strand
• in the Mathematics learning area (Levels F–10) through the ‘Number and Algebra’ strand, which has a sub-strand called ‘Money and financial mathematics’.

Financial literacy education forms part of the ‘Number’, ‘Algebra’, and ‘Measurement’ strands of Mathematics in the Victorian Curriculum F–10 (implemented from 2025) and the Economics and Business (Levels 5–10) learning area (implemented from 2026).

Victorian government schools cannot provide a School Banking Program from an Authorised Deposit-taking Institution (ADI) such as a bank, credit union or building society.

Victorian government schools are also prohibited from:

• allowing an ADI to deliver any other form of financial literacy education to their students, including via face-to face, virtual or blended delivery modes
• using learning and teaching resources (for example, apps, worksheets, videos) including ADI branding, or those created or sponsored by an ADI, for the purpose of providing financial literacy education to students.

Further restrictions on School Banking Programs in Victorian government schools can be found in the department's Sponsorship policy.

Further information on financial literacy – what it is, why it is important and considerations for teaching it, is available on the Guidance tab.

Resources for school leaders to assist with the implementation of this policy and its communication to the wider school community are available on the Resources tab.

Department-curated teaching and learning resources to assist in teaching financial literacy in Victorian government schools can be accessed through the Resources tab.

Schools who require support in disengaging from a School Banking Program can contact the Arts, Humanities and Health and Physical Education Unit on 03 7022 2364 or studentlearning@education.vic.gov.au

Definitions

Authorised Deposit-taking Institutions (ADI)
ADIs are institutions like banks, credit unions, building societies and other mutual organisations that offer deposit products in Australia. ADIs are supervised by the Australian Prudential Regulation Authority (APRA) and must comply with the Corporations Act 2001.

School Banking Programs (SBPs)
SBPs are programs where an ADI offers deposit products to the students at a school, these students are encouraged to establish bank accounts and make ongoing deposits into those accounts at the school.

Related policies

• Curriculum Programs Foundation to 10
• Sponsorship

Guidance

What is financial literacy?

Financial literacy is defined by the world’s Organisation for Economic Co-operation and Development (OECD) as a combination of financial awareness, knowledge, skills, attitudes and behaviours necessary to make sound financial decisions and achieve individual financial well-being.

The Victorian Curriculum and Assessment Authority (VCAA) defines financial literacy as 'the ability to understand and apply different financial skills effectively, including personal financial management, managing debt, investing, budgeting and saving.'

Within the Victorian curriculum, students learn about how financial decision-making affects both personal and community wellbeing. Students develop appropriate skills and knowledge through the consideration of the rights and responsibilities of consumers and businesses, planning and budgeting processes, risk management, and informed financial decision-making. The importance of saving and financial planning is considered through development of personal budgeting and planning skills.

This sub-strand includes knowledge and understanding about:

• the importance of consumer and financial literacy to both individuals and the community
• the rights and responsibilities of consumers and businesses
• planning and budgeting
• informed financial decision-making
• saving and financial planning.

References

OECD (2020) Recommendation of the Council on Financial Literacy, OECD website, accessed 25 August 2025.

VCAA (n.d.) Victorian Curriculum 2.0, VCAA website, accessed 25 August 2025.

Why is financial literacy education in schools important?

Quality financial literacy education supports:

1. Participation in society: Financially literate individuals better understand taxation, government budgets, and public policy, enabling meaningful civic engagement. ASIC’s National Financial Capability Strategy (2022) highlights that financially capable individuals are more likely to plan ahead, make informed choices, and understand the implications of social policies.
2. Success in the workforce: Students need to understand payslips, tax, superannuation, and budgeting as they enter part-time work, apprenticeships, or further education and full-time employment. The FPA Financial Literacy Survey (2021) found that 45% of Australians aged 18 to 24 felt unprepared to manage finances when they started working.
3. Avoiding debt and financial pitfalls: Teaching students about budgeting, credit, and consumer rights helps reduce risky financial behaviour. Monash University (2023) Australian Youth Barometer found that 90% of young Australians aged 18 to 24 experienced financial difficulty in the past year and the National Centre for Vocational Education Research (NCVER) (2024) found that 19% skipped meals, and 22% went without medical care due to financial constraints. A Financial Basics Foundation (2022) report highlights that many young Australians lack understanding of credit, loans, and debt management. The absence of financial education contributes to risky borrowing behaviours and long-term financial challenges.
4. Enhancing wellbeing: Financial skills help students feel in control of their money, reducing anxiety and promoting long-term wellbeing. An Orygen and Mission Australia (2023) report finds that over half (55%) of young Australians aged 15 to 19 are concerned about financial security. And that financial stress is linked to increased mental health challenges, including anxiety and depression.

References

ASIC (Australian Securities and Investments Commission) (2022) National financial capability strategy 2022–2032 (PDF), Moneysmart website, accessed 25 August 2025.

Beyond Blue (n.d.) Money and mental health, Beyond Blue website, accessed 25 August 2025.

Financial Basics Foundation (2022) Financial literacy of young Australians: What they know, what they don't know, and what we can do to help, Financial Basics Foundation website, accessed 25 August 2025.

NCVER (National Centre for Vocational Education Research) (2024) Generation Z: Life at 23, Longitudinal Surveys of Australian Youth, accessed 22 August 2025.

Orygen and Mission Australia (2023) Counting the cost of living: The impact of financial stress on young people, Orygen website, accessed 25 August 2025.

Walsh L, Gallo Cordoba B, Cutler B, Huynh TB and Deng Z (2023) '2023 Australian Youth Barometer: Understanding young people in Australia today' Monash University, accessed 25 August 2025.

Where is financial literacy taught in the Victorian Curriculum?

Financial literacy is part of the Victorian Curriculum Foundation to Level 10. It is taught through the Economics and Business (‘Consumer and financial literacy’ strand) and Mathematics (through a sub-strand called ‘Money and financial mathematics in the Victorian Curriculum version 1.0 and through the strands of ‘Number’, ‘Algebra’ and ‘Measurement’ in the Victorian Curriculum version 2.0) learning areas.

In the Victorian Curriculum 1.0:

• the ‘Consumer and financial literacy’ strand focuses on responsible consumer and financial decision-making at both the individual and community level. For more information, refer to the Victorian Curriculum F–10 search: Economics and Business
• the ‘Money and financial mathematics sub-strand’ provides students with the knowledge, understanding and skills necessary to make every day financial decisions. At Foundation to Level 6, student learning is focused on understanding money, creating simple financial plans, and calculating percentages to assist them to make informed purchasing choices. At secondary level, students develop the mathematical skills necessary to make sound consumer choices, calculate profit and loss margins and understand simple and compound interests. For more information, refer to the Victorian Curriculum F–10 search: Mathematics.

In the Victorian Curriculum 2.0:

• the Economics and business learning area, students progressively build financial literacy skills from Levels 5 to 10. At Levels 5–6, they learn about everyday financial decision-making, opportunity cost, and factors influencing consumer choices. In Levels 7–8, students explore consumer rights and responsibilities and develop budgeting and goal-setting skills. By Levels 9–10, they engage with financial planning and investment strategies to prepare for adult financial responsibilities
• the Mathematics learning area, financial literacy is represented by students' ability to apply numerical skills to real-world financial contexts.

Considerations for teaching financial literacy

Financial literacy in Economics and Business should be taught through local, Australian and international issues, events and case studies. The ‘Consumer and financial literacy’ strand should not be taught on its own – it should instead be integrated with other Economics and Business strands and, where relevant, other learning areas (for example, Mathematics, Geography) and capabilities (for example, Ethical, Personal and Social). Research suggests that scenario-based, applied learning and ‘real world’ problem solving foci in student learning experiences are most likely to support learning progress (Amagir et al. 2017). Scaffolding understanding and use of explicit academic vocabulary for Economics and Business is also recommended, as is positioning students to consider options, consequences and the wider implications of decision making (for example, legal, social, environmental, political) (Philip 2025).

Financial literacy in Mathematics should be taught through practical financial problems. Such problems provide meaningful contexts for students to apply mathematical concepts such as place value, mathematical operations, efficient strategies for calculating, reasoning and problem solving. Research suggests that when financial literacy tasks are embedded in mathematics lessons, students are more likely to use mathematics as a tool to consider broader social, ethical, and economic issues. Teachers should note that home and community experiences will strongly influence student knowledge, beliefs and attitudes to money (Attard 2018).

References

Amagir A, Groot W, Maassen van den Brink H and Wilschut A (2017) 'A review of financial-literacy education programs for children and adolescents', Citizenship, Social and Economics Education, 16(1):56–80.

Attard C (2018) 'Financial literacy: Mathematics and money improving student engagement', Australian Primary Mathematics Classroom, 23(1):9–12.

Philip D (2025) 'The EPIC framework for financial literacy teaching', Durham University Business School, SSRN website, accessed 25 August 2025.

Commonwealth of Australia (2019) Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, Royal Commissions website, accessed 25 August 2025.

OECD (Organisation for Economic Co-operation and Development) (2020) PISA 2018 Results (Volume IV): Are Students Smart about Money?, OECD website, accessed 25 August 2025.

OECD (2020) Many 15-year-olds- struggle with financial literacy, OECD Pisa report finds, OECD website, accessed 25 August 2025.

VCAA (n.d.) The Victorian Curriculum F–10, VCAA website, accessed 25 August 2025.

Resources

Strengthening financial literacy education in schools

Financial literacy teaching and learning resources are available on the Arc Learning platform. These resources have been developed in consultation with financial experts and the Victorian Student Representative Council.

Practical financial literacy skills hosts resources that focus on topics students identified as most useful to them in their everyday lives, including:

• understanding money and budgeting
• making sound financial decisions
• identifying financial scams
• calculating interest and tax
• understanding consumer rights.

Financial literacy in the Victorian Curriculum: Economics and Business supports the teaching of financial literacy within the Economics and Business learning area. This includes:

• sample units of work developed by the Victorian Curriculum and Assessment Authority
• MoneySmart Teaching Program resources developed by the Australian Securities and Investment Commission
• resources developed by other financial or education experts such as the Australian Taxation Office, ABC Education and Consumer Affairs Victoria
• links to professional learning opportunities, case studies and research.