We live in one of the most financially privileged countries in the world, yet many Australians are still learning money lessons the hard way. I’ve seen it time and time again. Someone’s entire financial future shaped by what they didn’t learn about money when they were young.
After more than 28 years in the finance industry, working across consumer credit, debt collection and now as a mortgage broker, I can confidently say that financial literacy isn’t optional anymore. It’s essential. And if we don’t start teaching the next generation how money really works, we’re setting them up to struggle.
My Journey in Finance
I started my career fresh out of high school in the late 90s with a finance company that offered interest-free loans to retail customers. Think TVs, fridges, lounge suites — all available with no upfront cost, no interest for up to five years and often with deferred repayments. Sounds great, right?
But here’s the catch: many of the people using these finance options had no savings, no plan, and no real understanding of how debt worked. Once that interest-free period ended, they were suddenly hit with interest rates of 25% or more. If they hadn’t paid it off by that time (and many hadn’t) they were stuck with repayments they struggled to afford.
From there, I moved into debt collection. I worked with debts that had been written off by banks, telcos, finance and utilities companies, but were now being chased by collection agencies. I saw firsthand how bad credit followed people for years, affecting their ability to borrow, buy a home and even get a mobile phone plan. In some cases, it led to court action and bankruptcy.
What I’ve Learned About Debt & Financial Literacy
Today, as a mortgage broker, I see the other side of the equation. People trying to get ahead. Some are buying their first home. Others are building investment portfolios. What separates the two groups (being those who thrive and those who struggle) often comes down to basic financial literacy.
The clients who succeed usually learned good money habits early. Either their parents taught them, or they made a conscious effort to educate themselves to get ahead. They understand budgeting, compound interest, credit scores, and how to use “good debt” to grow wealth.
Those who didn’t get that knowledge early? Many are still playing catch-up well into their 40s and 50s. Some missed buying property entirely because of credit issues or poor saving habits developed in their teens and twenties.
The Impact of Early Financial Decisions
We’re now living in a world where over 4 interest free instalments, you can “Buy now – Pay later” for a hoodie from your local surf shop, your Friday night pizza and I’ve even seen some bars and clubs advertising to buy a round of cocktails and pay them off later! One of the biggest myths I hear is that young people “don’t need to worry about money yet.” But the truth is, your twenties shape your thirties, and your thirties shape the rest of your life.
Imagine if every teenager in Australia understood: how compound interest can work for or against them; the dangers of buy-now-pay-later services; the importance of your credit score and what impacts it; and how to budget for their future goals, not just Friday night.
We’d see fewer people drowning in consumer debt and more with a foot on the property ladder before they turn 30.
How We Can Do Better
Financial literacy isn’t just a personal issue, it’s a national one. And right now, it’s not being taught consistently in Australian schools. That must change.
We teach our kids algebra and Shakespeare, but not how to manage a budget, understand a payslip, or avoid a credit trap. What if financial education became as standard as English or Maths?
Even a few hours a year dedicated to real-world money skills could change lives.
Final Thoughts
There’s no one-size-fits-all solution, but I believe this: the earlier we teach young people about money, the fewer financial mistakes they’ll make later in life. And that benefits all of us, not just individuals, but families, communities, and the economy as a whole.
So maybe the real question is: If we don’t teach the next generation about money… who will?
By Joel Archer
Author Bio:
Joel Archer is the Director and Principal Broker at Ascension Finance Newcastle, with over 25 years of experience across consumer finance, debt collection, and mortgage broking. Having helped hundreds of Australians buy their first home or understand how to invest in property, he is passionate about empowering the next generation with real financial knowledge.
Learn more at: https://ascension.finance/
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