Article: Financial literacy: the need for research and education: globally, there is growing awareness of the importance of financial literacy. What are the implications for education providers and financial services institutions?(EDUCATION SUPPLEMENT)

Recent initiatives

The Australian Government's Taskforce, which concluded in June 2004, made several recommendations pointing to the need for a significant escalation in the research and education capacity of the financial services industry (FSI). Key areas requiring financial literacy research and education services were identified as:

* consumer literacy;

* professional literacy; and

* the governance and accountability of the FSI.

Financial literacy is generally understood to be the ability to make informed judgments and effective decisions regarding the use and management of money. It relates to all sections of society.

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