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Financial Literacy Tip of the Week

Financial literacy is important for every person, but what is it? And who teaches it to us?

The Faculty of Business and Economics at Macquarie University have put together a series of short videos, on a variety of topics to help you understand your finances, setting goals, investments, and how to know a scam when you see one.

Episode Summary



Peter Mordaunt Prof Paul Clitheroe AM
Peter Mordaunt Paul Clitheroe
Peter has over 35 years of experience in the investment industry, and currently works as a consultant helping people to better manage their money, overcome debt, and avoid financial pitfalls.

Paul is a leading media commentator on financial issues and is renowned for his ability to explain complex money issues in plain English.

Why is financial literacy important?

We need to take responsibility for our own financial decisions and be accountable for managing our finances.

People with poor financial literacy skills are at risk of:

  • earning lower incomes,
  • being unable to withstand sudden financial pressures,
  • being unable to pay their mobile phone, utility and credit card bills,
  • greater exposure to financial risk
  • making poor financial decisions.

With easy access to consumer debt, pressures on savings as the population ages, and sophisticated financial instruments, financial literacy skills are essential.

What is 'financial literacy'?

Financial literacy is the ability to understand the management of money on a practical, personal level.

It can include:

  • budgeting
  • savings
  • investments
  • financial risk & return
  • debt and credit
  • superannuation