Numeracy report highlights financial literacy shortfall
Financial Counselling Australia has called on financial institutions and other service providers to review the way they present information to customers, following a report that one in five Australians have low numeracy skills.The Productivity Commission reported that 22 per cent of Australians had "level 1" numeracy, which means that they could only carry out one-step numeracy processes, such as counting, sorting and basic arithmetic operations with money. About 25 per cent of women and 17 per cent of men were assessed at this level.The Productivity Commission based its findings on an analysis of data from the OECD's Program for International Assessment of Adult Competencies survey. The survey was taken in 24 countries in 2011/12 and was conducted in Australia by the Australian Bureau of Statistics.Groups with low numeracy skills included people with low levels of education, older people, people not working and migrants from non-English speaking backgrounds. People aged 65 to 74 had the lowest literacy and numeracy.Twelve per cent of the population had high level numeracy skills, meaning they were able to understand a broad range of mathematical information that may be complex, abstract or embedded in unfamiliar contexts.When it comes to literacy, 14 per cent had level 1 literacy skills.Compared with other OECD countries, Australia performs above average in literacy but average in numeracy.Australia's average literacy score improved over the period from 2006 to 2012, while numeracy scores were unchanged.FCA said in a media release that financial institutions and other service providers should consider providing more customer information via videos or graphics."The findings also reinforce how important it is that industry, government and the community sector continue to invest in financial literacy initiatives," FCA said