Increasing UTS students’ financial literacy

A lack of financial knowledge is closely linked to poor financial decision-making, increased debt, and long-term financial challenges. Without direct intervention and an increase in education around financial literacy, more people worldwide will face a future of instability and uncertainty. 

Dr Amir Armanious, a lecturer in finance in the UTS Business School, observed a growing number of students struggling with basic financial concepts. Suspecting this issue extended beyond his classroom, he and Professor Dave Michayluk undertook to research financial literacy at UTS.   

‘Financial literacy is a form of freedom. It builds the foundation for financial security, independence, and wellbeing.'

'It is about acquiring the skills to avoid costly mistakes and the confidence to make informed decisions that balance immediate needs with future goals,’ says Dr Armanious.

‘We observed concerning patterns in student financial knowledge during lectures and tutorials.’ Students frequently asked basic questions about budgeting, debt management, and investment concepts, suggesting significant knowledge gaps. 

‘Furthermore, the rise of digital financial services and cryptocurrency investments among young people, combined with increasing student debt levels, highlights an urgent need for comprehensive assessment.’ We suspected these issues were widespread but lacked concrete data to inform targeted interventions. 

‘This, paired with a growing body of academic literature in this space, inspired us to research just how financially literate our students were, and subsequently, how we could equip them with the skills and knowledge to adequately and responsibly manage their money,’ he said. 

Upon receiving a Social Impact Dashboard Grant from the UTS Centre for Social Justice & Inclusion, which was matched by the UTS Business School, Amir and Dave applied the OECD/INFE 2022 Toolkit, with some modifications, to construct a Financial Literacy Index to assess students’ financial knowledge, behaviours, and attitudes.

More than 1300 UTS students completed the survey, revealing key areas for targeted education – particularly in investment knowledge, retirement planning, and debt management. 

Some foundational concepts were well understood – such as interest on a loan (96.3%), inflation (96.1%), and risk and return (92.5%) – but there were notable gaps in more complex areas. Only 64.5% understood the time value of money, a core financial principle, and just 52.5% could correctly identify how Exchange Traded Funds (ETFs) work, highlighting the need for focused education on modern investing and long-term financial planning.  

Interestingly, while students demonstrated strong financial and digital financial knowledge (80.8% and 79.9%, respectively), this did not consistently translate into practice.

Scores for traditional financial behaviour (62.3%) and digital financial behaviour (65.4%) were significantly lower compared to financial knowledge. These lower scores indicate a gap between what students know and how they act, particularly in managing money in both offline and digital environments.  

Scores for both traditional and digital financial attitudes (58.9% and 65.4%, respectively) were also low, indicating a potentially passive or disengaged mindset toward financial decision-making. This mindset may limit students’ ability or motivation to apply their financial knowledge effectively in real-world situations. 

Subjective financial wellbeing was also particularly low (47.0%), indicating many students feel financially insecure or dissatisfied.  

‘Our research found gaps that highlight the need for educational efforts to go beyond knowledge and foster more proactive financial behaviours and attitudes,’ said Dr Armanious.

From research to action  

The findings from this research are now being used to design a concise and engaging Financial Literacy Module, which will equip participants with a foundation in financial literacy, including the knowledge and skills necessary to make informed personal and professional financial decisions. It will be made available to all UTS students and staff.  

The new module will also introduce students to emerging trends in the field, such as fintech innovations and sustainable investing, ensuring they stay current within the evolving financial landscape. Dr Armanious explained that upon completion, students are expected to demonstrate ‘greater confidence in financial decision-making and a reduced vulnerability to financial scams and poor financial practices.’  

Unlike the full academic subject, this module is hyper-focused, interactive, and designed to deliver essential financial concepts in a practical and engaging format. It is due to be launched in 2026. 

‘In addition to the module under development, we created a new subject called 25400 Financial Literacy that was launched in Summer 2024. It's compulsory for Business students and can be taken as an elective by students in other disciplines. It gives students the opportunity to work with real financial data and engage with realistic case studies. This empowers them to make informed decisions about their personal and business finances,’ he said.

Demographic insights   

The study revealed differences across unique student groups:   

• International students outperformed domestic students in financial behaviour (66.6% vs. 60.9%), financial attitudes (61.7% vs. 57.9%), digital financial behaviour (67.9% vs. 64.7%), and digital financial attitudes (69.4% vs. 64.1%). Dr Armanious believes this reflects their heightened motivation to manage finances carefully while adapting to a new environment and greater reliance on digital tools to navigate unfamiliar systems.  
• Students from low-socioeconomic (low-SES) backgrounds showed slightly stronger financial behaviour (64.0% vs. 62.3%) and digital financial attitudes (66.3% vs. 65.3%), possibly due to greater financial constraints that motivate careful resource management. 
• Female students scored slightly higher than males in financial attitude (59.1% vs. 58.8%) and digital financial attitude (66.2% vs. 64.5%).
• Indigenous students reported lower scores in financial attitude (43.5%) and financial resilience (47.2%), compared to non-Indigenous students (59.1% and 61.0%, respectively), suggesting challenges in financial confidence and perceived stability. It is important to note that the participation of Indigenous students was significantly limited, which means the results cannot be generalised.

Sustainable impact   

UTS has committed to monitoring the financial literacy of UTS students as part of the UTS Financial Inclusion Action Plan using an assessment framework developed by the research team. 

This will be embedded into standard UTS practice, with ongoing technical support and analysis from Dr Armanious and his team. The overarching goal is to build a financially confident student community alongside a monitoring system that will inform future educational initiatives for students.  

‘I envision financial literacy evolving beyond a mere skill to become a transformative mindset. A mindset that empowers students to take control of their financial futures, make informed choices, and break free from cycles of debt and uncertainty,’ Dr Armanious says. 

‘On a global scale, I hope for a future where financial literacy is not regarded as a luxury or a niche skill but as a fundamental right for everyone, everywhere, enabling individuals to build healthier, more prosperous lives.’