The South Australian government says banks will be banned from teaching financial literacy in the state's schools by the end of the year.
Education Minister Blair Boyer said the move would prevent institutions from using subtle marketing techniques to sign up young children to lifelong accounts.
He said it would prevent institutions from using subtle techniques to gain customers from a young age.
"Predatory behaviour in some respects from financial institutions seeking to use school banking programs as a way of starting lifelong relationships, if I could put it politely, and you know have them as customers for the rest of their lives," he said.
The move fulfils a Labor election promise made in 2021.
Programs like Dollarmites — run by the Commonwealth Bank — are already banned in Victoria, NSW, Queensland the ACT.
The Commonwealth Bank closed Dollarmites last year.
BankSA had a similar program called Little Savers that ceased operating in schools in 2014.
Mr Boyer said a financial literacy advisory group would be formed to provide advice on up-to-date and appropriate resources that should be used in schools.
"Some states have already moved after the federal royal commission into financial institutions to prevent banks, credit unions from being involved in these kind of programs," he said.
In 2018, the ABC revealed the Commonwealth Bank had paid almost $400,000 to Queensland state schools during 2017, to sign children up to its school banking program.
However, South Australia's Department for Education admitted it had no idea how much money the Commonwealth Bank paid state schools to run its Dollarmites school banking program.
The SA government does not keep any record of which schools participate in the scheme, which has been running since 1931, nor does it have any oversight over the materials the bank provides to schools, a Freedom of Information request revealed.
