Australia must urgently commit to a National Financial Capability and Wellbeing Strategy in 2026, as financial literacy rates fall and young Australians risk entering adulthood without essential money skills, according to a new call to action led by Ecstra Foundation.
A growing coalition across education, consumer protection, community services and research is urging the Federal Government to lead a coordinated national response to reverse declining financial wellbeing and equip Australians with lifelong financial skills, in schools, across workplaces, community settings and throughout major life transitions, including early careers, parenting, caring responsibilities and retirement.
Ecstra Foundation CEO, Caroline Stewart, said the need for action is time-critical, with Australia increasingly at risk of falling behind global peers.
“Financial literacy rates have fallen across all age groups in Australia, with the steepest declines among 15–24-year-olds,” Ms Stewart said. “We are setting up a generation to navigate an increasingly complex financial system without the essential skills they need.”
Australia stands in contrast to countries such as New Zealand, the United States and the United Kingdom, which have strengthened their government led approaches to financial education and wellbeing.
New Zealand has recently reinforced financial literacy teaching in schools through its refreshed national curriculum and the 2025-2027 National Strategy for Financial Capability, uniting more than 1000 partners. The United States has continued to expand school-based financial education mandates at a state level, and in the United Kingdom, financial education has been embedded in schooling for over a decade and is now being further supported with strong consumer protection and guidance systems.
“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 Australia’s re-engagement in the OECD’s Programme for International Student Assessment (PISA) Financial Literacy Assessment in 2029, with a decision on participation expected imminently by the Federal Government. Australia’s involvement lapsed in 2018.
“Re-engaging in PISA is a critical first step,” 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 the call to action, Ecstra identifies 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.
“Education alone is not enough – financial outcomes are shaped by the systems people must navigate every day. We need fairer systems, clearer information and stronger protections, particularly for those experiencing financial stress or vulnerability.
“More than 70 countries already have national strategies, and Australia was once a leader. We cannot continue with fragmented, short-term approaches. This year is our opportunity to build a connected national strategy that genuinely improves the financial lives of all Australians,” Stewart added.
Ecstra Foundation is inviting the Federal Government to convene a cross-sector working group to develop a new National Financial Capability Strategy, map existing initiatives, identify gaps and duplication, and agree on shared national goals and accountability for outcomes. Initial supporters include Financial Counselling Australia, Financial Rights Legal Centre, First Nations Foundation, and Super Consumers Australia, with additional signatories expected to join in the coming weeks.
This article originally appeared as a media release from Ecstra Foundation.