19 Managing financial risks and rewards for individuals
Before you start
Main focus
It is vital that as individuals and citizens of Australia, whether as income earners or consumers, we are aware of and protect ourselves from risky situations either of a financial or personal nature.
Why it’s relevant to us
Earning money for most people is hard work and it is important that we learn to recognise the potential financial risks and protect ourselves from these risks. Understanding the role of the financial institutions operating in Australia and the products and services they provide will assist us with our money management and broader financial matters. Gaining an understanding of insurance will help to reduce our exposure to property, personal and health related risks. Finally, preparing for our future by understanding superannuation will assist in overcoming the risk of insufficient funds being available to enjoy our retirement years.
Inquiry questions
- What is the role of financial institutions in Australia?
- How can individuals secure their personal financial information?
- What types of financial risks can individuals be exposed to and need to protect themselves from?
- What strategies can people use to ensure they protect themselves from risks both to themselves and their future financial security?
Key terms
- Debt
- Dividend
- Identify theft
- Insolvency
- Insurance
- Scam
- Shareholder
- Superannuation
Let’s begin
In our Australian financial landscape it is important we gain an understanding of the financial institutions that operate and the important role they play in our financial stability. A deeper understanding can help with your financial future by preventing scams, managing debt and teaching you how to protect and invest your money.