Govt tackles financial illiteracy

The Federal Government has set up a taskforce to address financial illiteracy amongst consumers. The National Strategy for Consumer and Financial Literacy will be chaired by Paul Clitheroe and aims to educate consumers about personal finance. Assistant Treasurer Helen Coonan cited the $800 million lost in investment scams over the past three years and said consumers should be better equipped to make better judgments about the use and management of money. Coonan also referred to Australians' high level of credit card spending and the low levels of adult financial literacy found in an ANZ survey last year. The survey showed that 16 per cent of Australians spend their entire wage packets as soon as they get them and only 5 per cent claim they have no problems managing their money.