Financial Literacy in Schools

[revdev]

Hi All,

A topic that has popped up a few times on PT. At least it's being discussed in places other than on this forum, which is a step in the right direction.

Stuff.co.nz

Money classes at school failing to gain ground
10 September 2006
By ROB STOCK

Campaigners vying to get financial literacy taught in schools meet tomorrow to thrash out a response to the new draft curriculum, which ranks financial literacy as less important than sustainability, citizenship and globalisation.


Enterprise New Zealand Trust wants to see financial literacy included in teachers' "achievement objectives" - bureaucratese for the things children must learn.

The trust's Lyn Morris said the inclusion of financial literacy as a "critical" competency in the new draft curriculum, released in July, was a step forward for financial literacy, which is currently taught in only a quarter of secondary schools.

Morris said that meant tens of thousands of kids would continue to leave school with little or no idea of how money, budgeting, debt, saving and investment worked.

The trust holds out little hope of an upgrade for financial literacy given there are so many competing interests, including environmentalists, and Maori and Asia 2000, wanting subjects like Chinese, the Treaty of Waitangi and green issues included in the curriculum.

Enterprise New Zealand Trust business development director Caroline Steele said the financial literacy programme the trust ran in 100 schools nationwide would soon be granted academic credits, which would mean it counted towards school certificates, giving it more credibility in the eyes of parents and schools.

Tomorrow's meeting includes PriceWaterhouseCoopers chairman John Shewin, Jane Diplock of the Securities Commission, as well as representatives from the Reserve Bank, ASB Bank, the Retirement Commission and American Express.

AdvertisementAdvertisementPublic feedback on the draft curriculum closes in November, with the curriculum to be finalised in 2008.

The educational games on the government-funded Retirement Commission's Kids & Money site at www. sorted.org.nz were played by over 200,000 people last year.

Financial literacy has moved into the centre of the political debate, with Finance Minister Dr Michael Cullen saying he will use KiwiSaver, his plan for a nationwide superannuation scheme, to promote it.

A financial literacy survey by the Retirement Commission and ANZ Bank showed young people, particularly those from poorer areas, had the lowest levels of financial literacy in the country. Nearly 60% of those between 18 and 24 had low levels of financial literacy.

[adambaird]

the new draft curriculum, which ranks financial literacy as less important than sustainability, citizenship and globalisation.

Very interesting....

I am sure that one day there will be a substantial change to the system. I think it needs to start with the teachers/parents.
I have nothing against teachers, but the reason that 90% of them are teaching is for the income (i am sure there are a minority who are teaching purely because they enjoy it ) to support their families etc.

When we can have financially literate teachers, we can then have financially literate students!

[whitt]

Jamie McIntyre from OZ.
Has a book which talks about educating school age kids. He even puts the book into schools for free.

What I didn't learn at school but wish I had.

It is a very good book on the basics of property investing and goal setting too. Available on trademe.

[Perry]

Jamie McIntyre from Oz has a book which talks about educating school age kids. He even puts the book into schools for free.

What I didn't learn at school but wish I had.

Sounds akin to RK's If You Want to Get Rich, Don't Go
to School title. I wonder if it says the same things?

[muppet]

Kids to be taught money skills

Kids to be taught money skills
Personal financial management is being added into the new school curriculum, which was announced yesterday.

07 November 2007

New Zealand is now one of the first countries in the world to introduce personal financial management into schools.

"This is a major milestone in improving New Zealander's financial knowledge," Retirement Commissioner Diana Crossan says.

"It is recognition that being skilled in personal finance is essential for people to reach their full potential," she said.

"A basic level of financial skill is essential for people to make informed judgements and take effective decisions regarding the use and management of money," Crossan said.

"It is critical that all New Zealanders are able to make informed decisions and judgements on saving, borrowing, investing and managing their money throughout their lives.

However, the current level of financial knowledge in New Zealand is nowhere near as good as it should be," Lianne Dalziel said.

The curriculum has been developed over a number of years and schools will be supported to implement the new curriculum over a three year period from 2007 to 2010.

The Retirement Commission is one of a few groups that has been working with the Ministry of Education since 2004 to embed personal financial education into the national curriculum.

On Friday it will launch the draft national strategy for financial literacy which will act as a blueprint for future activity to help improve New Zealanders' financial knowledge.

The public will get their chance to comment on future priorities for financial literacy activities once the draft strategy is released.

Also on the financial literacy front yesterday the Securities Commission launched a new website designed to help investors understand the risks and rewards of investing.

http://www.goodreturns.co.nz/

ps I wonder if Robert Kiyosaki was consulted?

[SuperDad]

I'm looking forward to helping my children with this homework.

Paul.

[Keys]

COMPOUND INTEREST ! ! ! ! !


Keys

[artemis]

COMPOUND INTEREST ! ! ! ! !


Keys

In this PC world, where no-one is allowed to be offended, they will have to leave this out of the curriculum, wont they?

[Keys]

In this PC world, where no-one is allowed to be offended, they will have to leave this out of the curriculum, wont they?

Sorry?

Don't see the relivance.


Keys

[Perry]

I'm looking forward to helping my children with this homework.

Is that satire or cynicism?

[Wayne]

I think it is a brilliant idea. My kids know how money works from me and doing economics in school. I have ensured they understand the value of money, saving and making it work for you. They will take what they know and do with it as they wish but at least they have the information. They are lucky because I know money but many kids come from families who have no idea how money works - how would they ever know without something like this?

[artemis]

Sorry?

Don't see the relivance.


Keys

I understand that under Islamic law, the payment or receiving of interest on money is forbidden.

[Keys]

I understand that under Islamic law, the payment or receiving of interest on money is forbidden.

Ah yes, I have heard something along those lines.


Keys

[lissie]

I think it is a brilliant idea. My kids know how money works from me and doing economics in school. I have ensured they understand the value of money, saving and making it work for you. They will take what they know and do with it as they wish but at least they have the information. They are lucky because I know money but many kids come from families who have no idea how money works - how would they ever know without something like this?

They could read books like the rest of us did - if the school ever has time to teach them to read of course !

[Perry]

Kiwi (Students) Need Financial Skills

You really think so?
Go on!
You're kidding me?

From Stuff

Kiwis Need Financial Skills
By Kris Hall - The Dominion Post

New Zealand's inaugural "Financial Awareness" week kicks
off today and it seems its timing could not be better for
young Kiwis.

A questionnaire commissioned by the Young Enterprise
Trust and tackled by hundreds of secondary school students
has provided a damning indictment of financial knowledge
levels among New Zealand's future workers.

Despite the survey being packed with basic themes like
compound interest, income tax and GST, returned forms
were littered with an alarming number of mistakes only half
managed to register eight correct answers out of 40
questions.

"We can conclude from the survey that most New Zealand
senior secondary school students have a poor understanding
of personal financial management and knowledge," Institute
of Financial Advisers president Lyn McMorran said. "The
implications of low levels of financial literacy are that our
standard of living and our overall standing in the global
economy on saving are affected. Decisions at the household
level affect the economy as a whole."

The questions that registered the highest number of incorrect
answers centred on credit card interest, the types of
investment that return the highest growth over time, and
dollar cost averaging.

Ms McMorran said that if the younger generations were
made more aware about issues such as investing, budgeting
and planning for retirement, New Zealand as a whole would
be better off.

"High levels of financial knowledge impact on national
savings levels and without savings New Zealanders are
unlikely to accumulate income earning assets. The level of
net wealth accumulation also has implications for retirement
policies going forward."

Kiwis are among the poorest savers in developed countries.
Households' indebtedness topped 160 per cent of disposable
income in 2007. In 2008 about 76 per cent of the household
sector's gross wealth was invested in property. Only 12 per
cent of was invested in life, superannuation and managed
funds or shares.

The Retirement Commission has long been banging the
drum for financial literacy to be factored into the school
curriculum. Financial institutions say a change in attitude to
savings and investments would help fast-track New
Zealand's economy.

Craig Myles, director of financial planners Myles Wealth
Management, said Kiwis had only to look at Australia to
realise how far behind they were when it came to managing
money.

While Australians met around barbecues to discuss
superannuation, investment and risk, the topic of
conversation in New Zealand always returned to property.
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When it came to investment, Mr Myles said, Kiwis were like
"possums stuck in the headlights of an oncoming car, unable
to make a proactive move for their own safety".

A further worry was the age of people seeking advice. The
average age of his new clients ranged from 55 to 62 those on
the cusp of retirement many of whom had already started to
access the lump sum of capital on which they planned to
retire.

Many Kiwis are left chasing risky, unsustainable high-
income yielding investments advertised by high-profile
names and brands.

"Decisions made without due emphasis to the risk of capital,
are doomed to fail and disappoint."