The chicken or the egg
3 April 2007
Plum's Senior Education Development Consultant, Michelle Brown, addressed the Conference of Major Superannuation Funds this week.
Michelle was asked to address the following proposition: Do members need to be financially literate to appreciate the education they receive, or does that education start them on the journey to financial literacy?
It was financial literacy's 'chicken or the egg' question and it gave Michelle the opportunity to outline Plum’s industry-leading member education approach to the superannuation industry.
Michelle explained Plum’s belief that behaviour and values – attitudes to money matters – were the key factors influencing how members received financial education. This challenges some accepted wisdom that says education material must be pitched in a way that takes account of a person’s age, family situation, level of financial knowledge or exposure to education campaigns.
The results speak for themselves, with member feedback and Plum's annual Super Fitness Survey indicating this innovative approach works.
Michelle talked about the importance of framing messages to suit different member segments based on their attitude to money. She argued it's too easy to fall into the trap of delivering regular, sophisticated message to members who have a 'planner' profile, with high levels of financial literacy and motivation. This comes at the cost of those who do not.
Though her presentation didn't resolve the question of the chicken and the egg question, Michelle was able to explain the conundrum of member education. 'It's about knowing your member base, their attitude to money, what they need, and knowing how and what to communicate to them,' she said.
More information about Michelle's presentation is featured in the attached media release below.
 Read more about Michelle's presentation (PDF 44kB).
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