A ‘concerning’ number of Australian adults are financially illiterate, prompting the ASX to join more than 80 securities exchanges and clearing houses worldwide to bring awareness to the goal of raising financial literacy in communities.

This is the first time the ASX has taken part in the global event co-ordinated by the World Federation of Exchanges, which was scheduled to coincide with the International Organisation of Securities Commissions’ (IOSCO) World Investor Week earlier this month.

“Although Australia is a prosperous country with a well-performing education system, a recent study by the University of Newcastle found that more than one-third of Australian adults are financially illiterate, with the rate even higher for women and young adults,” ASX MD and CEO Helen Lofthouse said.

“This is concerning given that the study also found that financial literacy has a significant impact on a person’s general wellbeing and overall life satisfaction. Clearly, more work needs to be done to bridge this knowledge gap.”

World Investor Week co-ordinator Jose Vasco echoed the sentiments, saying the need for investor education and financial literacy “has never been greater than today”.

“As the financial marketplace continues to evolve and innovate, investors require a better understanding of the financial ecosystem to evaluate the choices available to them, make informed decisions and avoid financial fraud,” Mr Vasco said.

IOSCO committee chairman Pasquale Munafo added: “Actual and potential investors need to plan for their future and need to know how to remain financially resilient through different circumstances in their life cycle.”

Of course, raising awareness is great – as Australia’s Assistant Treasurer and Minister for Financial Services Stephen Jones noted: “Arming yourself with a few basic facts and techniques can make a huge difference” – but raising financial literacy itself is what’s really needed.

To that end, the ASX has put together some educational resources for investors here.

Reach Markets also offers a range of free educational resources, including options trading programs, webinars, courses and tools, which you can access here or enjoy a free trial of our options trading platform Implied Volatility.

Past performance is not a reliable indicator of future performance.

Sources:

• asx.com.au, Media centre
• newcastle.edu.au, Greater Bank report
• iosco.org, The IOSCO World Investor Week delivered key messages on investor education and investor protection around the globe