Banks to be withdrawn from SA schools
Private banks will be banned from teaching financial literacy in South Australian public schools by the end of this year, with the state government set to develop its own resources to teach children how to best manage money.
Commonwealth Bank stopped running its Dollarmites school banking program this year. Photo: CHOICE
Education Minister Blair Boyer announced Labor’s election commitment to ban financial institutions including banks, credit unions or building societies from running banking programs in schools would come into effect by the end of this year.
The programs encourage students to open and regularly deposit money into bank accounts through their school to help them understand the importance of saving.
A 2020 Australian Securities and Investment Commission review found approximately 180,000 Australian students across nearly 4000 primary schools held accounts with as many as 10 banks as at June 30 that year.
But the review called into question the effectiveness of the programs, finding banks used sophisticated marketing tactics to lure children into becoming customers and were unable to demonstrate that the programs actually improved savings behaviour.
The review prompted the Commonwealth Bank to scrap its popular “Dollarmites” program this year after 90 years.
Boyer said it was “not an appropriate avenue” for financial institutions to establish early relationships with future customers through schools.
He said the government’s policy would ensure that financial literacy education in public schools was free of commercial intent.
“The Malinauskas Labor Government promised to clean up financial literacy and education by banning banks going into schools,” he said.
“There is strong evidence that shows us organisations know the value of engaging with children to help market products, yet we see no benefit of financial literacy or education.”
The Education Department will undertake an audit of its curriculum materials to ensure its resources comply with the government’s policy.
A financial literacy advisory group will be set up to provide advice on “contemporary” financial literacy and resources.
The department will also enlist the help of financial experts to develop curriculum resources to support teachers to provide age-appropriate financial literacy education.
Under the new program, students would be taught how to budget, make sound financial decisions, identify scams and understand consumer rights.
“It is important that children learn about financial literacy in an environment free of branding or bias from financial organisations,” Boyer said.
Victoria, New South Wales, Queensland and the ACT have already banned school banking programs in public schools.
