1. http://business.time.com/2010/07/23/bound-to-buy-the-10-types-of-consumers-who-inevitably-overspend/

The impulse buyer and frequent regretter 1

Need it now?

Spend! Spend! Spend!

Treat yourself.

.

Every waking hour we are bombarded by marketing and encouraged to buy products and services. Many of us have access to credit to purchase what we may or may not need.

In today’s consumable world we have the opportunity to make some extremely poor choices and those choices can impact us for the rest of our lives.

Bait marketing

Behavioural economics and evidence-based policy – Doing Literacy for Real Humans Louise Sylvan Productivity Commission ASIC Seminar Melbourne May 29, 2009

If it takes 5 machines 5 minutes to make 5 widgets, how

long would it take 100 machines to make 100 widgets?

555100 50

Financial education, literacy or capability

Financial education is the process by which financial consumers/investors

improve their understanding of financial products and concepts and,

through information, instruction and/or objective advice, develop the

skills and confidence to become more aware of financial risks and

opportunities, to make informed choices, to know where to go for help,

and to take other effective actions to improve their financial wellbeing.2

2. Recommendation on Principles and Good Practices for Financial Education and Awareness http://www.oecd.org/finance/financial-ducation/35108560.pdf

Why is it so hard to create a financially literate Australia?

• Behavioural economics explores why people sometimes make irrational decisions, and why and how their behaviour doesn’t follow the predictions of economic models.

• Real-world people are irrational, struggle to exert control over their emotions and impulses, and are social animals with a fondness for fairness.

• Do we need more regulation to protect people or should people be responsible for their own financial education?

http://www.financialliteracy.gov.au/media/218309/financial-literacy-and-behavioural-change.pdf

A way forward

If we know the barriers that prevent people from making good financial decisions then we understand:

1. people are ‘normal’ not rational

2. information and choice overload

3. complexity of financial products and terms and market uncertainty

4. time factors and pressures

5. over and under-confidence on their own financial literacy knowledge

6. self control when it comes to spending

7. framing and how the information is presented

How can we improve people’s ability to plan for a safe and secure financial future?

Recommendation on Principles and Good Practices for Financial Education and Awareness

www.oecd.org/finance/financial-education/35108560.pdf

The modules

ed consists of 30 x 15-minute online episodes, categorised into ten distinct streams:

• home buying• budgeting• money basics• managing debt• products• moving out• kids and money• investing• your credit history• living with a home loan

The challenge

As well as developing a high quality digital resource that was engaging and highly interactive, the tool

also needed to align with ME’s new brand and mission ‘to help all Australians get ahead’.

The financial education needed to:• liberate users to become financially fit• be made available to partner organisations as well as third-

party employers for integration into their own financial literacy offerings

• be accessible for the ME sales team to provide facilitator-guided learning in the workplace

• reduce core volume by about 20%• maintain user engagement• be hosted on a new customised and responsive site,

capable of user registration and tracking

The answer

The challenges of redeveloping the program were many, but some of our solutions included:• injecting humour and life into the learning outcomes• never losing sight of the educational message, even with a

clear brief to showcase the new ME brand• utilising online content that was short, sharp, fit for

purpose and suitable to a range of audiences• collaborating effectively with agency partners and the

client to produce a witty and easily digestible take on some serious and dry financial topics or concepts

• producing an easy to understand and navigable learning portal to house ed

As ME wanted to also have their sales force take the program out to partner workplaces, we also developed face-to-face sessions and workshops to help ME bring ed to life in the

workplace.

The outcomes

The value of ed is it’s user-centricity. It is completely free of banking products and segmented into ten

distinct streams, which is a real point of difference with other product-centric, generic offerings

available today.

The program offers a full spectrum of financial education, covering topics for all life stages and

circumstances, delivered in a self-paced and engaging format.

Put simply, we’re really proud of ed.

Let’s take a brief look …

http://www.moneyminded.com.au/

Thank you

Money101 online financial education

www.money101.com.au