How to teach students about money management

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Australia’s financial literacy needs improvement and would benefit from a more effective approach to teaching the topic. The Educator hears how the Banqer platform can impart complex financial concepts to young students

WHEN YOUNG people leave school, they face many financial challenges – from first-time renting to student loans, budgeting and employment. However, school education may be leaving them unprepared to face these challenges. According to the Australian government’s National Financial Capability Survey in 2021, only 42% of young Australians aged 14–17 felt confident or very confident about managing their money. However, 94% of the same demographic agreed that it was important to learn how to manage money. Marc Capstick, product owner at financial education platform Banqer, says there’s a “huge need” for financial education – though with teachers already feeling overworked, many can find it difficult to introduce this element into their lessons.

Banqer is a financial education platform for schools. In our simulated economy, students safely experience the financial world before leaving school. Underpinning this is our host of curriculum-aligned teaching and learning resources to help educators deliver highly engaging, authentic and real-world lessons. Our mission is to prepare the next generation for their financial future. We believe everyone should have access to effective financial education that sets them up for financial success – whatever that means to them. So far, we’ve helped over 350,000 students across Australasia on their financial literacy journey and have plans to help a lot more.

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“We know that kids are leaving school not prepared to face the challenges of the financial world, and we also know that this is true amongst young adults and even older adults”

Marc Capstick, Banqer

“Young Australians in particular have been identified as having low financial literacy,” Capstick tells The Educator. “We know that kids are leaving school not prepared to face the challenges of the financial world, and we also know that this is true amongst young adults and even older adults, particularly as we’re facing increasingly tough financial and economic times that people aren’t prepared for. They just haven’t had the opportunity to learn the basic core skills around personal finance and budgeting.”

Schools in Australia and New Zealand know they have the responsibility to provide financial education, but it’s something they often find challenging to do. Capstick notes that there are many concepts that even adults can find hard to grasp. Financial education is full of complex words and terminology, and presenting these in a clear and engaging way can be difficult for teachers who are already under the pump. However, he notes that while kids often “hate maths”, they love computers and games. Introducing ideas like insurance, budgeting, taxes and pay cheques through gamification has proven to be an effective way of teaching these concepts and how they apply to real-life scenarios.

Banqer currently runs two programs – Banqer Primary and Banqer High – aimed at younger and older age groups. In its virtual simulated economy, it allows students to experience a risk-free environment in which they can make financial decisions, learn about key concepts and test their knowledge through quizzes. “We’ve had massive uptake and engagement, especially from quite troubled kids who have no financial education background,” Capstick says. “It’s also curriculum-aligned and provides a huge amount of additional resources for teachers, which means they don’t have to spend as much time preparing for lessons. “The really cool thing about it is you don’t need to be a specialist commerce or finance teacher,” he adds. “Every single teacher has been to university; they’ve lived on bones and have had to make financial sacrifices. Their stories and personal learnings are the really enriching layer for students.”

The interactive platform is supported by downloadable resources, and Capstick notes that the gamification allows for a lot of application of knowledge. Students can make their own budgets, apply for jobs, apply for rental properties to live in with their classmates, buy or sell shares, and plan for retirement. They can also make mistakes leading to bankruptcy scenarios but in the context of it being a learning experience. Students can also experience consequences through so-called “random events”. “After they’ve learned about insurance, for example, we’ll provide them with a real-life event that will impact them differently depending on whether they’re insured or not insured,” Capstick explains.

Banqer has seen immense success with its products for primary and high-school students, but it’s now focusing on the age at which students are on the cusp of independence. It will soon be launching its Stage 3 platform, which focuses on preparing students for life outside of school. Capstick says this is a vital age to start teaching financial management skills, as university is often the first time that students have to manage significant amounts of money. “It’s based solely on the age and stage of a school leaver, and all of the life experiences they’ll go through from the ages of 18 to 22,” he explains.

“That includes flatting for the first time, applying for university course costs, juggling study and part-time work, transport costs, etc. We’ve really focused on teaching budgeting skills, how to manage a deficit and what to do with a surplus. It’s all aimed at changing student behaviours to help them in the real world.” The program can be completed in 10 weeks, or it can be spread out over the course of an entire year. Once students are set up, they have free rein to engage with the platform at any time and progress their virtual life. With dashboards showing top net worths, top investors and top superannuation contributors, students are encouraged to take part in a little healthy competition. For teachers, Banqer provides very clear tracking of student engagement. This includes indications around session counts, how students are doing in terms of engagement compared to their classmates, and knowledge attainment through quiz responses and improvements. Ultimately, Capstick says the aim is to influence the decisions students will make in real life, and to equip them with the knowledge and skills to make good choices. “We’re moving quite heavily towards being able to measure impact and behaviour,” Capstick says. “For example, we’re teaching them about bank accounts because we want them to be very vigilant about monitoring and checking their accounts regularly, making sure the transactions are correct, etc. Being able to report and measure against that is really powerful. “There’s a huge lens on changing student behaviours for the good of the real world.” To find out more about Banqer and how it can help students learn financial management skills, click here.

Approaching the complex world of money at school

Targeting soon-to-be school leavers

Published 07 Aug 2023

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“Every single teacher has been to university; they’ve lived on bones and have had to make financial sacrifices. Their stories and personal learnings are the really enriching layer for students”

Marc Capstick, Banqer

“This develops an understanding of risk, and of protecting against risk. Another example is teaching students about the rights and responsibilities of being a tenant and giving them real-world scenarios where they need to critically analyse, evaluate and make a decision on how to act. “It’s a really safe, risk-free environment that allows them to experience all the ‘adulting’ situations that you and I face today.”

Source: Australian Government National Financial Capability Survey 2021

FINANCIAL CAPABILITY OF AUSTRALIANS – A 2021 SURVEY:

17%

94%

42%

17% of Australians said they were not confident about their ability to hit a financial goal

42% of Australians aged 14–17 felt confident about managing their money

94% of Australians aged 14–17 agreed it was important to learn how to manage money

Banqer platform: Topics covered

Income and expenses

Banking Superannuation Tax Insurance Stocks Others