Financial education needs an evidence infrastructure
Evidence matters, but evidence that is inaccessible or difficult to apply will have little real-world impact. As financial education continues to gain prominence in schools and communities, questions are growing about how research can better inform practice. Tracey West argues that alongside investment in research, we need an evidence infrastructure that helps translate knowledge into effective practice. This post is by Dr Tracey West, founder of Marshmallow Money Australia and former academic and school financial literacy program manager.
During my academic career, I spent years researching financial literacy and publishing the findings in peer-reviewed journals. Those publications were important contributions to the evidence base, but over time, I found myself asking a different question: Who is actually using this research?
After moving from academia into financial education, I found myself working alongside teachers, practitioners and community organisations. Their questions were rarely about statistical methods or academic theory. Instead, they wanted practical answers.
Has financial literacy improved in Australia? Which groups are struggling the most? What evidence can I use to make the case for financial education in my school or organisation?
Teachers and practitioners need more than good intentions; they need evidence to help them decide where financial education is most needed and which issues deserve priority. Australia has a growing body of research on financial literacy, but much of it is dispersed across academic journals, government reports and large datasets. Unlike some other areas of education and social policy, there is no single organisation responsible for synthesising this evidence and translating it into practical insights for educators and practitioners.
One consequence is that important policy questions can remain difficult to answer. Have long-standing priority groups, such as women and young adults, experienced improvements in financial literacy? Where do the greatest gaps remain? And how should these findings inform the design of financial education programs?
I revisited the Household, Income and Labour Dynamics in Australia (HILDA) Survey to see whether any gaps had narrowed. The findings were both encouraging and concerning.
Financial literacy improved between 2020 and 2024, reaching the highest level recorded since the HILDA Survey first included financial literacy questions in 2016. Australians demonstrated a stronger understanding of inflation, investment risk and return, perhaps reflecting the financial realities of recent years as inflation, rising interest rates and cost-of-living pressures became part of everyday life.
However, averages tell only part of the story. Beneath the national improvement were persistent and important inequalities. Financial literacy remained lower among younger Australians, people living outside Australia's major cities, and those in socioeconomically disadvantaged communities.
One finding stood out. Among Australians aged 15–24, almost twice as many young men as young women achieved the highest level of financial literacy. Young women were also more than twice as likely to have low financial literacy. The largest gaps occurred in understanding inflation, investment diversification, and the relationship between risk and return; concepts that underpin many financial decisions people make throughout adult life.
These findings should not be interpreted as evidence that young women are less capable of understanding financial concepts. Rather, they prompt an important question for educators and policymakers: Are we designing financial education that is relevant, engaging and meaningful for all young people?
For many years, financial education has focused on improving knowledge. That remains important. But knowledge does not develop in a vacuum. Young people engage more deeply when learning connects with their lives, their aspirations and the financial decisions they are beginning to face. A curriculum that feels useful is more likely to be remembered, discussed and applied.
The report also found that higher financial literacy was associated with greater financial preparedness, financial resilience and financial wellbeing. While these relationships do not imply causation, they reinforce the importance of ensuring that all Australians have opportunities to develop the knowledge and confidence needed to navigate an increasingly complex financial world.
Perhaps the most important lesson from this project has little to do with financial literacy itself.
It is that research has the greatest value when it informs practice. Evidence should not sit behind journal paywalls or remain accessible only to those with specialist research skills. It should help teachers advocate for financial education, assist practitioners in designing better programs, and support policymakers in making informed decisions.
Evidence can identify where the gaps exist. It cannot close them. That responsibility sits with educators, curriculum designers, policymakers and practitioners. If this report helps those people make better decisions or gives one teacher the evidence they need to advocate for financial education in their school, then it will have achieved exactly what I hoped it would.
Read the report here: Financial literacy and financial capability in Australia. Evidence from the HILDA survey 2016-2024.
Moderator: Dr Jozica Kutin