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It is fairly safe to say that the notion of “financial literacy
Financial literacy and social networks – what’s the connection?
Jo Balatti
James Cook University
Presentation at the ALA National Conference, Cairns, November 2007
Personal financial literacy education makes certain assumptions about the nature of financial literacy and the skills and knowledge that learners need to master to be financially literate. This paper questions current definitions and argues for an alternative that acknowledges financial literacy as a social practice. It explores the social capital dimension of financial literacy and the implications this has for education.
Financial literacy is one of the many literacies that abound and joins what seems to be an ever increasing number of which computer, environmental, community, social, emotional, and spiritual are just a few. Sanguinetti (2007) observes that the usage of the term “literacy” in these contexts refers to the knowledge and skills required in the domain specified. Personal financial literacy, then, the focus of this paper, refers to the necessary knowledge and skills needed by people to manage their own monies effectively. This paper however, suggests that financial literacy is more than knowledge and skills.
The paper also presents two proposals, both to do with social capital, which may be useful when thinking about how formal and informal education can improve the personal financial literacy of adults. In Australia, there is a wide choice of financial literacy education products ranging from accredited to non-accredited training that is available as stand alone products or is integrated into other training or programs. Products include courses, workshops, seminars, online courses and written material such as booklets. This paper is not concerned with the evaluation of such products. Rather, it argues that it would be useful to include a social capital perspective in the design and delivery of such products.
The first proposal is that doing financial literacy occurs within social network
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