Why Financial Literacy Is A Win-win For Australia

exactly What Do Australian 15-year Olds Have In Common With Their Peers In New Zealand And Estonia?

While this is an inspiring result it is necessary not to have a look at excessive into it. In the first place, PISA surveyed simply 18 nations for monetary literacy.

And second of all we needed to share third-place honours with the Kiwis (Estonia we can cope with), which reveals that Australia has significant room for enhancement in monetary literacy.

This has actually been acknowledged by a broad range of stakeholders, including the Australian Securities and Investments Commission (ASIC), which is collaborating an across the nation push to enhance monetary literacy across the board.

In its just-published 'National Financial Literacy Method', ASIC sets out a thorough plan of action including school curriculum, complimentary information services, assistance programs, industry collaborations and ongoing research.

ASIC specifies monetary literacy as "a mix of monetary understanding, capabilities, state of minds and behaviours needed to make sound monetary decisions, based on specific situations, to enhance monetary health and wellbeing".

" In today's stressful consumer society, monetary literacy is an important daily life capability. It suggests having the ability to understand and work out the monetary landscape, manage money and monetary dangers efficiently and avoid financial risks," ASIC states. "Improving financial literacy can benefit anybody, no matter age, earnings or background."

I completely support the effort to raise the level of Australians' financial literacy. As a financial consultant I get to see first-hand the, typically huge, holes in financial understanding in the Australian neighborhood.

Skeptics may argue that the monetary literacy gap in fact matches the advisory market. From my point of view, the much better the grounding our clients have in monetary concepts, the more reliable and efficient the advisory relationship.

With a financially-literate population, advisors can cut straight to the real issues instead of coaching financing 101.

Our money-smart 15-year olds augur well for the future. (By The Way, while PISA considered it as "not substantially various", Australia had a mean score of 526 < iframe width="560" height="315"src="https://www.youtube.com/embed/HZ1rM1aDz4c" frameborder="0" allow="autoplay; encrypted-media" allowfullscreen >

Myths About Purchasing Term Insurance Quotes

Many people back off in purchasing term insurance quotes since they dont have sufficient knowledge about it. They couldnt make sound decision because they thought that it is too complicated and expensive.

Sadly, term insurance confused few people due to some myths roaming around with cost, coverage, types, policy and many more. Keep reading so you could clear up your mind and be more confident on reaching the most appropriate coverage for you.

Myth 1: Buying term insurance quotes is not a necessity whether you are healthy, single or young.

Although you still dont have children and spouse or even medical problems, it still necessary for you to get life insurance so you can secure a bright future for your family. Therefore, if you decide to purchase life insurance policy when you are still healthy and young, this could greatly help you streamline your lower premiums. Take note that the younger the buyer, the less they need to pay for their life insurance.

Myth 2: It is too expensive.

Nowadays, you could look for cheap term insurance quotes. For some people, it could be the beginning of an affordable term policy or even the combined power of permanent and term life insurance. Take for an instance, when your family do need $800,000 of coverage and they dont have the ability to afford that so you could have them all on a permanent policy, then could instead opt for $250,000 term and at the same time, $250,00 permanent policy.

Myth 3: Term insurance is the best choice.

You must be aware that the most appropriate life insurance coverage for you will basically rely on your financial goals and unique circumstances. To be more specific, term insurance quotes are a good choice most particularly if you need coverage temporarily for particular period of time. Additionally, policy riders could help you improve your coverage, which could let you purchase more coverage in the future without the need to prove your own insurability. Make sure that you will ask your agent about the best available policy like accidental health, term conversion and child riders.

There you have it- some of the myths about purchasing term insurance quotes that you need to know to change your mind set. Term insurance is an assistance for you in the future and not an extra baggage for you to carry on. It would be your friend in the next coming years. So make sure that you will pick the coverage.

Ethics for the Financial Industry


Ethics is a study about morals. Every profession has its own set of morals that must be adhered to. This is to ensure that all professionals offer the best services.

A finance code of ethics informs professionals about rules and operating procedures that they must follow to comply with industry standards, corporate policies and government requirements. Ethics rules vary depending on role, industry, company size and transaction. Some professionals (such as public accountants) must meet annual minimum ethical requirements to maintain active licenses.

The code of ethics for finance professionals serves to promote transparency and honesty. It is used alongside an organization’s code of conduct.

The purpose of this Code of Ethics for Finance Professionals is to promote honest and ethical conduct and compliance with the law, particularly as related to the maintenance of the firm’s financial books and records and the preparation of its financial statements. The obligations of this Code of Ethics for Finance Professionals supplement, but do not replace, the firm’s Code of Conduct. As a finance professional of the firm, you are expected to:

Engage in and promote ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships, and to disclose to the Office of the Secretary any material transaction or relationship that reasonably could be expected to give rise to such a conflict.

Carry out your responsibilities honestly, in good faith and with integrity, due care and diligence, exercising at all times the best independent judgment.

Sourced from: https://www.jpmorganchase.com/corporate/About-JPMC/ab-code-of-ethics.htm

Talking about of code of ethics and code of conduct could lead to the question of which is which. Why should we have a code of conduct when we already have the code of ethics which is the grand pupa of all codes? At this point it is important to clarify what each code does.

Code of Ethics

A code of ethics is a document, usually issued by a board of directors that outlines a set of principles that affect decision-making. For example, a code of ethics might stipulate that XYZ Corporation is committed to environmental protection and green initiatives. The expectation is that individual employees, when faced with the option, will select the greenest solution. The Caux Roundtable, a business-ethics think tank, argues for codes of ethics by noting that, "The self-interested pursuit of profit, with no concern for other stakeholders, will ultimately lead to business failure and, at times, to counterproductive regulation. Consequently, business leaders must always assert ethical leadership so as to protect the foundations of sustainable prosperity."

Code of Conduct

A code of conduct typically is issued by a board of directors; however, it outlines specific behaviors that are required or prohibited as a condition of ongoing employment. A code of conduct might forbid sexual harassment, racial intimidation or viewing inappropriate or unauthorized content on company computers. These are rigorous standards that usually are tightly enforced by company leaders. Ethics consultant Cornelius von Baeyer notes that, "There is considerable information that codes, along with other measures, have helped pull some companies out of the morass of scandal, and have helped many companies build a healthier work climate and reputation."

Sourced from: http://smallbusiness.chron.com/difference-between-code-ethics-conduct-2724.html

There are those who argue that the financial industry does not need a code of conduct but it only needs the code of ethics. This is because conduct depends on context but good morals are applicable everywhere.

A code of conduct will not make a person behave ethically, but a code of ethics might, an ethics expert with over 20 years' experience says.

And it provides a valuable framework for dealing with offenders against it.

Brian Moran, co-principle of Managing Values, told LeadingCompany that ethical breaches are increasingly judged as a business risk.

"Increasingly companies are tying ethics to risk," he says. "That is interesting because risk is seen as a hard system. In the past, people have tended to think codes of ethics as wooly and esoteric, classic 'feel good' documents."

Many leaders have been too slow to catch up with the notion of the "court of public opinion", he says. Ethics are determined by society, and companies that fail to act speedily will find society makes up its own mind. Social media means that such judgments can be swift, harsh and difficult to reverse.

Sourced from: http://www.smartcompany.com.au/leadership/25838-why-a-code-of-ethics-not-a-code-of-conduct-could-work-for-you-business.html