Financial wellbeing organisation, Ecstra Foundation, is urging the Federal Government to commit to a National Financial Capability and Wellbeing Strategy in 2026, warning that declining financial literacy is leaving many young Australians unprepared for adult life.
Ecstra Foundation said financial literacy rates have fallen across all age groups, with the steepest decline among 15 to 24-year-olds, prompting a cross-sector coalition to call for a coordinated, government-led response.
The organisation’s CEO, Ms Caroline Stewart, said the issue was time-critical.
“We are setting up a generation to navigate an increasingly complex financial system without the essential skills they need,” she said.
The coalition includes organisations from education, consumer protection, research and community services, and is asking the government to lead a national strategy spanning schools, workplaces, community settings and major life transitions.
According to the foundation, Australia risks falling behind comparable countries such as New Zealand, the United States and the United Kingdom, all of which have strengthened government-led approaches to financial education. New Zealand has reinforced financial literacy in its national curriculum, while the United States has expanded school-based mandates at state level, and the United Kingdom has embedded financial education in schooling for more than a decade.
Ms Stewart said Australia must act to remain competitive.
“These countries are making more consistent use of data, curriculum levers and coordinated policy to lift financial capability outcomes,” she said. “Australia will fall behind if we fail to act.”
A key priority is re-engagement in the OECD’s Programme for International Student Assessment (PISA) Financial Literacy Assessment in 2029. Australia last participated in 2018, and a decision on re-entry is expected from the Federal Government.
“Re-engaging in PISA is a critical first step,” Ms Stewart said. “It restores internationally comparable data, allows us to track what’s working, and signals genuine national commitment to improving young Australians’ financial wellbeing.”
In its formal call to action, the foundation outlines six priority areas, including elevating financial literacy in the Australian Curriculum, investing in evidence-based education and teacher support, embedding financial capability across life stages, strengthening consumer protections, and improving national measurement and coordination.
The group is also calling for financial literacy to be treated as an essential life skill and embedded consistently across all jurisdictions, with age-appropriate, real-world content.
The proposal recommends increased investment in teacher training, curriculum-aligned resources and evidence-based programs, with a focus on equitable access for regional, remote and lower-income schools.
The call to action comes amid broader concerns about financial wellbeing. One in three Australians struggles to meet household expenses, while nearly half cite financial pressure as a leading cause of distress, according to the foundation’s briefing document.
The organisation also points to growing digital exclusion, increased financial scams, rising living costs and greater complexity in financial products as factors heightening the need for stronger financial capability across the population.
More than 70 countries already have national financial literacy or capability strategies in place. Ecstra argues that Australia, once considered a global leader in this area, is now out of step with international practice and needs a coordinated national approach.
The foundation is inviting the Federal Government to convene a cross-sector working group to develop the strategy, map existing initiatives, identify gaps and duplication, and agree on shared national goals and accountability measures. Initial supporters include Financial Counselling Australia, Financial Rights Legal Centre, First Nations Foundation and Super Consumers Australia.
