Essays on Financial Literacy Problems in Australia Research Proposal

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The paper "Financial Literacy Problems in Australia" is a wonderful example of a research proposal on finance and accounting. The Australian financial service industry has exponentially grown in the last two decades. The various government initiatives and policies implemented during this period have provided many financial services and products to the Australian population. The resultant effect is that the daily requirements of obtaining mortgage rights, savings, and future investment strategies require high levels of financial skills. Also, the introduction of the compulsory superannuation has added more services and products that emphasize on retirement benefits products (Gallery, Newton & Palm 2011).

The changes in the Australian financial market have called for the need for personal financial knowledge that can empower individuals to comfortably and successfully navigate through the current financial service industry. Financial literacy, in today's world, is considered an important skill for consumers in their pursuit of making proper financial decisions. Financial literacy, according to some literature, is termed as the ability for an individual to make proper judgment and undertake effective decisions with regards to the expenditure and management of money (Bateman et al 2012).

While navigating through the current financial landscape in Australia, at least basic financial skills, apart from the complex financial knowledge are required. Financial literacy has consequences on the welfare of individuals in the management of their funds and stability in their finances. With the increase in financial products, individuals have been exposed to more choices and opportunities. However, they are facing the risk of making poor financial decisions (Huston 2010). The proposed research seeks to examine the implications of the financial services to the Australian population and try to come up with measures to ensure that the services benefit both the literate and the illiterate citizens. 2.0 Literature Review 2.1 Education and Financial Literacy In this particular research proposal, various literature concerning the topic has been reviewed in order to offer the basis for the conduction of the study.

Various studies undertaken in the past have already indicated that financial services have increased and are complex calling the need for a financially literate community (Hung, Parker & Yoong, 2009). The low literate financial levels pose a challenge to making mortgage decisions and have led to unstable high debt levels.

Some scholars argue that personal finance should be included in basic education for all (Jappelli, 2010). The idea is almost being adopted by the most developed countries which aim to enforce financial education to be part of the Kindergarten. Although various researches have resulted in mixed responses about the effectiveness of financial learning, most researches indicate that financial education brings about positive financial behavior (Jappelli & Padula 2013). A research-based on youth financial behavior provides evidence that formalizing financial learning can improve financial knowledge resulting in more positive financial behavior.

Formal financial literacy programs for the youths, such as the high school students, have significant positive impacts on the spending habits of the high school students (Lusardi & Mitchell 2011). Financial educations during high school education resulted in higher saving rates especially at the time the generation will enter the economic world. The studies generally provided evidence that financial education can improve the financial status of individuals and their families.


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