A lack of enthusiasm among students and parents for the software that’s making it easier to save and invest can lead to a high number of financial planners leaving school, an Australian Financial Press investigation has found.
The study, titled Why are they leaving school?
Why do so many students and their parents leave school, reveals that the software they use is not well understood and often under-utilised by parents and teachers.
“There are a number of reasons why students and families choose not to use the software, with a range of reasons including the difficulty of accessing and using it, the fact that they’re less confident in their own ability to use it, and because they’re frustrated with it,” said the report’s author, David Withers, a senior research fellow in education at the University of New South Wales.
Mr Witherts said the software was “an important and important tool in helping parents and children to manage financial stress”.
“However, in many cases students and teachers don’t understand the technology that the system offers and what it does, or what it can do,” he said.
He said there was also an “overwhelmingly negative” response from parents when asked why their children weren’t using the software.
A key feature of the software is its ability to create a bank account online, rather than having to go to a bank branch.
The software allows users to create their own account, create a payment and bank account, set their savings rate and have a “preferred savings account” which will allow them to access their savings and investments.
However, the software has a “one-size-fits-all” approach to financial planning, with many parents and students simply choosing to have a bank or credit union account for the first time.
For example, students can access a bank deposit, which is linked to their primary account, but not the principal savings account.
Some parents, who have children who can use the bank account feature, may choose to have their children keep their savings in the secondary account, which can only be accessed via a primary account.
“A lot of the students and those who do manage their own accounts are going to have different types of savings and investment options,” Mr Wither, who is also a research fellow at the Australian National University, said.
“For some, it’s going to be the secondary accounts, for others, it may be the principal accounts.”
The software is also confusing and not well explained, with parents not being told about how to use its features and not being offered enough information on the site.
Parents have also expressed concern that it’s not easy for them to manage the accounts themselves, with some parents saying that they don’t know where their child’s savings are and that they often have to go and ask the bank to make sure that their child has an account.
In one survey, one in 10 parents reported that they had used the software “a lot” but “didn’t know what to do” because it didn’t explain the features and the information they had to provide to the software or the financial advice they had received.
“Parents are often frustrated and they feel they’ve missed out on something that they need,” Mr Pappas said.
Topics:education,financial-services,technology,community-and-society,finance,federal-government,education,health-policy,education-facilities,fraud-and–corporate-crime,government-and-(parties-before-the-national-parliament-2011),health,healthcare-facility,health,student-care,home-schooling,religion-and/or-beliefs,schools,australiaFirst posted January 16, 2020 13:24:24Contact Ashley SmithMore stories from New South Welsh