A Victoria-based mortgage broker has delivered the first in a series of programs about mortgage and finance education to students at a local high school.
Adele Andrews (pictured above), director of Australian Property Home Loans, delivered the program tailored to the Year 8 students at Firbank Grammar School in the suburbs of Melbourne.
Andrews taught the students about the value of money, covering spending habits, saving strategies, key terms like interest, budget, and interest rates, and the role of mortgage brokers.
“I wanted to get them thinking about money and to acknowledge that if you are not in control of your money, you cannot lead the life you want to lead,” Andrews said.
“By this, I mean a secure future that enables you to do the things you want to do, have the things you need and always feel that you are in a position of power financially.”
Financial literacy is essential to a well-functioning society, with multiple studies showing increased levels can lead to better financial outcomes, increased standards of living and higher life satisfaction.
However, a University of Newcastle study found two-thirds of Australians can be classed as financially literate, with young people aged 18-24 years old reporting the lowest levels of financial literacy and financial autonomy among all age groups.
Programs have been implemented in Australian schools to help ensure the next generation don’t repeat the same mistakes as their parents, and many are already seeing positive results.
Given mortgage brokers are uniquely positioned in the community while possessing the skills of financial literacy, Andrews said it made sense to run her own session.
“As mortgage brokers we have access to so much life information that is useful for students to take into their future, and if I can say one thing that positively impacts any student in relation to the way they think about money, then that is a very fulfilling outcome,” Andrews said.
Running these sessions also had a double-edged benefit, according to Andrews. Not only does it encourage students to consider money management but it also brings attention to the mortgage broking industry and the value brokers have to offer.
“If we can position ourselves as credible, educational resources, it can only lead to more positive impacts on the reputation of the industry and hopefully position it as a career choice that many may not have previously considered,” Andrews said.
As anyone who’s taught teenagers can attest, lessons need to be tailored for their age group to make it fun and interesting – especially with a topic like finance.
Andrews tailors her presentations to each year level, considering their potential part-time job eligibility, social media influences, and brand interests.
“While each presentation is very different, the one commonality is to ensure there is a clear understanding of how to control money, ensuring you are always in a surplus and the basic mechanics of what a home loan is,” Andrews said.
“I also cover how interest works, what interest rates are and how a home loan helps you buy a home.”
“There is a genuine gap in understanding about these topics at any age, so I break that down in all of my presentations - but depending on their level of experience I also tried to bring it back to things that are relevant to them. I also tried to make it as interactive as possible.”
Overall, Andrews found the school community embraced the initiative and received positive feedback from both students and staff.
“The common consensus among the teachers was that they wished that their school had offered something like that when they were at school,” Andrews said. “I'm finding that there is a genuine appreciation for the need to run these kinds of programs out to students.”
“As far as questions go, the ones I received were mainly centred around what a mortgage broker does, which I was thrilled about because I would love to see more interest in this industry from younger people - especially females.”
While Andrews is just getting started, she said there is so much opportunity for brokers to give back to their community and help build financial literacy among the younger generation.
Andrews encouraged brokers to use online resources, such as the MFAA’s Powerpoints and Moneysmart, when developing lesson plans.
“The most important thing is to not go in too hard - don't assume any level of knowledge and make sure that you are presenting relevant, easily digestible information,” Andrews said.
“Align the information with the age bracket you are presenting to and read your audience. Keep it light, keep it fun, and enjoy the experience.”
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