Levels and proficiencies of consumer financial literacy among apprentices in the western suburbs of Melbourne, Australia

Tworek, Joel (2006) Levels and proficiencies of consumer financial literacy among apprentices in the western suburbs of Melbourne, Australia. Honours thesis, Victoria University.


In this research study we have adopted Mason and Wilson's (2000) definition of being financially literate as "the ability to make informed judgments and to take effective decisions regarding the use and management of money". Keeping this definition in mind, certain financial skills are identified as important for apprentices, to rightfully be considered financially literate. These skills include basic financial mathematical skills, cash and financial management, basic knowledge of payment methods, superannuation, loans, investments and the ability to source financial assistance. Through analysing the survey data we found that a significant percentage of apprentices do not possess the required financial skills identified in this study to manage their finances effectively. It was also found that apprentices lack understanding of more complex payment methods such as credit cards and EFTPOS, as a result these are not used on a regular basis. Major areas of concern are knowledge of superannuation, interest rates and personal loans. Finally, the data revealed that apprentices could identify the importance of financial management and its benefits. Unfortunately this is often not put into practice. Hence a major indication from the study was that apprentices lack most basic knowledge and confidence to actively manage their finances effectively. This study has identified that apprentices would benefit from an effective education program aimed at improving their financial skills. For an apprentice to feel comfortable with their current financial position, they need to be confident with both their current asset position and debt level. With this understanding, a financial education program primarily aimed at teenager and young adults is well advised, to engage the major areas in order to give apprentices confidence in their financial position. Once this has been achieved they can then move on to improving their knowledge of payment methods and other financial products.

Additional Information

Bachelor of Business (Honours)

Item type Thesis (Honours thesis)
URI https://vuir.vu.edu.au/id/eprint/32992
Subjects Historical > Faculty/School/Research Centre/Department > School of Economics and Finance
Historical > FOR Classification > 1502 Banking, Finance and Investment
Keywords personal finance, finances
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