Chair in Financial Literacy

Professor Mark Gabbott, Executive Dean of the Faculty of Business and Economics

"With a long and distinguished history in finance education and research and impressive plans for the future, the Faculty of Business and Economics at Macquarie University is uniquely positioned to support a Chair in Financial Literacy."

- Professor Mark Gabbott, Executive Dean

Paul Clitheroe to lead new Macquarie University financial literacy initiative

Paul Clitheroe AM has been appointed to a new Chair in Financial Literacy. Paul is a well-known finance analyst, advisor and media commentator. In his new role he will lead Macquarie University's research and teaching of financial literacy, which already includes a popular undergraduate course that targets non-business students.

As Chair of Financial Literacy at Macquarie University, Clitheroe will:

• Lead, commission and disseminate research
• Provide policy commentary and advice
• Improve financial education and awareness

"Macquarie University teaches thousands of students from across Australia and around the world every year. If we can improve the financial literacy of these students as 18 and 19 year olds, we can not only help ensure they gain the benefits throughout their lives, but also positively influence their children from the earliest age.

"I'm also very keen to add to the worldwide body of research into financial literacy, and to work with such a well regarded faculty."

Financial Literacy

Increasingly, consumers need to take responsibility for their own financial decisions and be accountable for managing their finances effectively. Yet many individuals lack financial literacy skills. Others, over-confident of their ability to protect and grow their investments, are not able to properly assess risk and return.

People with poor financial literacy skills generally earn lower incomes, are less able to withstand sudden financial pressures, and are less able to pay their mobile phone, utility and credit card bills. They also have greater exposure to financial risk and tend to make poorer financial decisions. But they are expected to assume responsibility for financial planning in an increasingly complex landscape. With relatively easy access to consumer debt, pressures on savings as the population ages, and the exposure of individuals to sophisticated, and often inappropriate, financial instruments, the need for financial literacy skills has never been so important.

Improving financial literacy will improve people's lives

Financially literate individuals have the capacity to make informed choices about financial products and the skills to plan for a secure financial future. They also have the confidence to properly assess risk and reward.

Existing financial literacy programs play an important role in raising awareness about the need for financial literacy and in developing financial skills. But much of the activity in financial literacy is fragmented or difficult to access.

An integrated approach is needed, one which brings together research, commentary and advice, and education. It should also address the financial literacy needs of different groups at key points in their lives.

Tip of the Week

Peter Mordaunt presents a series of 52 short financial literacy videos dealing with financial literacy matters that impact everyday people in everyday lives. Each week a new video will be loaded. These videos are self-contained addressing topical issues in finance e.g. superannuation, managing credit card debt and so on.

Find out more about the Financial Literacy Tip of the Week

Macquarie University establishes a Chair in Financial Literacy

The Chair in Financial Literacy will empower individuals, helping them understand how the financial system works, so they can better manage their financial affairs, plan more effectively for their futures, and protect and grow their assets.

With the support of the Macquarie University Faculty of Business and Economics, the Chair will tackle the range of financial literacy topics that can arise within an individual's or family's life cycle, addressing the discrete needs of school and university students, young people as they enter the workforce, families with mortgages, pre-retirees and retirees.

The Chair will:

• lead, commission and disseminate research
• provide policy commentary and advice
• improve financial education and awareness.

In Australia and around the world, financial institutions, education providers, community organisations, governments and private companies have introduced financial literacy programs. These programs play an important role in raising awareness about the need for developing skills in financial literacy.

But much of the activity in financial literacy is fragmented and difficult to access.

An integrated approach is needed, one which brings together research, commentary and advice, and education. It should also address the financial literacy needs of different groups at key points in their lives.

Macquarie University supports a comprehensive financial literacy program led by Australia's first Chair in Financial Literacy. The Chair in Financial Literacy will play a central role in building Australia's financial literacy skill base which, in turn, will help build the country's productive capacity and standard of living.

With the support of the Macquarie University Faculty of Business and Economics and working with industry partners and organisations, the Chair will address the range of financial literacy topics that may arise within a person's complete life cycle, addressing the discrete needs of school and university students, young people as they enter the workforce, families with mortgages, pre-retirees and retirees.

Media Mentions