Exactly What do Australian 15-year olds show their peers in New Zealand and Estonia?

Well, inning accordance with the Program for International Trainee Evaluation (PISA) report, Australian, Kiwi and Estonian teenagers rank third-equal worldwide for their monetary literacy abilities.

The PISA research study, an effort of the Organisation for Economic Co-operation and Development (OECD), discovered only 15-year olds from the Flemish-speaking locations of Belgium and their equivalents in Shanghai understood finance much better than Australian children.

While this is a motivating outcome it is needed not to take a look at extreme into it. In the first place, PISA surveyed just 18 nations for monetary literacy.

And 2nd of all we had to share third-place honours with the Kiwis (Estonia we can cope with), which shows that Australia has considerable space for improvement in monetary literacy.

This has actually been acknowledged by a broad variety of stakeholders, consisting of the Australian Securities and Investments Commission (ASIC), which is coordinating an across the country push to enhance financial literacy across the board.

In its just-published ‘National Financial Literacy Technique’, ASIC sets out an extensive plan of action incorporating school curriculum, complimentary details services, guidance programs, industry collaborations and continuous research study.

ASIC defines financial literacy as “a mix of financial understanding, abilities, frame of minds and behaviours needed to make sound financial choices, based upon specific situations, to boost financial wellbeing”.

” In today’s hectic customer society, financial literacy is a vital daily life capability. It recommends being able to comprehend and work out the monetary landscape, manage loan and monetary dangers efficiently and prevent monetary threats,” ASIC says. “Improving monetary literacy can benefit anyone, no matter age, incomes or background.”

I totally support the effort to raise the level of Australians’ financial literacy. As a monetary expert I get to see first-hand the, typically huge, holes in monetary understanding in the Australian neighborhood.

Skeptics might argue that the financial literacy gap in fact matches the advisory market. However from my viewpoint, the far better the grounding our clients have in financial concepts, the more effective and efficient the advisory relationship.

With a financially-literate population, advisers can cut straight to the real issues instead of training 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 >

Nonprofit organizations are established for the betterment of humanity. These are organizations started with the aim of helping the less fortunate therefore they are not in business.

Non-profit companies also have many different structures. The structures in different countries (notably the USA vs the UK) are far less comparable than their For-Profit counterparts. This is often where confusion arises.

The most common mistake made is that people generally understand “Non-Profit” and “Charity” to be synonymous. They are actually very different.

A Non-Profit organisation is the same as a For-Profit organisation with two major exceptions:

It is not allowed to distribute profits to anyone, no matter how much money it makes. That means no dividends for shareholders. There are no shareholders. Nobody owns the company. It has trustees, who run the company – but they cannot sell their “trusteeship” to anyone else.

What does this mean? Essentially – 100% of the money which a Non-Profit makes is re-invested in the company. Additionally, Facebook can’t buy the company – because there is nothing to buy. It’s a legal entity which nobody owns.

Sourced from:http://john.onolan.org/what-it-means-to-be-non-profit/

So where exactly do none profits get their funding? There are several sources that they can utilize such as donations and grants among others.

Nonprofits can and do utilize the following sources of income to help them fulfill their missions:

Fees for goods and/or services

Individual donations and major gifts


Corporate contributions

Foundation grants

Government grants and contracts

Interest from investments

Loans/program-related investments (PRIs)

Tax revenue

Membership dues and fees

Sourced from:http://grantspace.org/tools/knowledge-base/Funding-Resources/General/How-are-nonprofits-funded

There are times when nonprofits go against all that they stand for. They may call themselves nonprofits but they are actually making profits for themselves. This now becomes fraud. For fraud to be stopped, it is important to know the categories of fraud involved in this sector.

Skimming — Cash is stolen before the funds are recorded in the accounting records.

Credit card abuse — Perpetrators either use organization-issued credit cards for personal use or use donor credit card numbers.

Fictitious vendor schemes — Perpetrators set up a company and submit fake invoices for payment.

Conflicts of interest — Board members or executives have hidden financial interests in vendors.

Payroll schemes — Continued payment of terminated employees, overstatement of hours, or fictitious expenditure reimbursement.

Subrecipient fraud — Abuses by a subrecipient entity include intentional charges of unallowable costs to the award, fraudulent reporting of levels of effort, and reporting inaccurate performance statistics and data.

Sourced from:http://www.eisneramper.com/non-profits-fraud-0410.aspx

So how do you know that a nonprofit is not utilizing its funds as it is supposed to? How do you sniff out fraud?

Sign #1: You can’t get financial data.

Nonprofits should be financially transparent. As a stakeholder you should receive these five financial numbers every month—without having to ask for them:


1) Cash balances in all bank accounts.

2) An accounts payable aging report. This shows all bills owed to vendors, listed by date. You want to see this because one way nonprofit management teams get away with financial fraud is by avoiding paying vendors, particularly small powerless vendors.

3) List of all credit lines, including letters of credits, and amounts borrowed.

Sourced from:http://www.huffingtonpost.com/steve-mariotti/how-to-spot-financial-fra_b_5675873.html