Financial Literacy in Children

Read More

SchoolFinancial Literacy in Children

The OECD has recently released the results of a survey of financial literacy skills and knowledge for 15 year olds in its member countries. Overall, New Zealand students have a relatively high level of financial literacy when compared with other countries, with 1 in 5 having advanced skills and knowledge. Financial education is now more widely available in New Zealand schools, and only 30% of students were in schools where financial education is not available, compared with the OECD average of 48%.

The level of financial literacy is closely linked with:

  • Skills in maths and reading
  • Whether students have a bank account (regardless of how much is in the account)
  • Gender – fewer girls have advanced financial literacy skills than boys
  • Having at least one parent with a tertiary education or a skilled occupation
  • Students’ experience with money matters and how often they have regular discussions with parents about money
  • Socio-economic status and ethnicity

These results reinforce the need for financial education to take place both in schools and in the home environment. It would seem that schools should be focusing in particular on girls, students from low socio-economic groups and ethnic groups with low levels of financial literacy.

Within the home, it is important to give children experiences with money, to allow them to have their own bank account and make decisions about what they do with money. When they are very little, start by talking them about making choices with money. At school age, set up a bank account for them and allow them to have money to use as they please, while continuing to talk to them. Gradually increase the amount they are responsible for so that by the time they leave home, they are able to manage a full personal budget.

Related Articles

Economy
Liz Koh

Budget Winners and Losers

The latest Government budget had something for everyone but while most households will be a few dollars a week better off, there are some clear winners and losers. In the winners’ corner are businesses, those on high incomes, and savers. The biggest losers are property investors who have built large portfolios financed partly by tax rebates.

Read More »

Top Up or Miss Out

The end of June is an important date for KiwiSaver members. The financial year for KiwiSaver runs from 1 July 2009 to 30 June 2010 and if you have contributed at least $1,040 to KiwiSaver during that time, you will be eligible for the full amount of Government tax credit to be paid into your KiwiSaver account in July.

Read More »

Responsible Investing

There is a worldwide trend for investors to want to make a positive contribution to the world by investing in companies that are socially and environmentally responsible. If you are passionate about the effects of climate change, the scarcity of food and water, and social or environmental policies in general, then you will no doubt wish to ensure that the companies in which you invest are going about their business in a manner that is consistent with your views.

Read More »

Helping You Live your retirement To the Max

Keep in touch

Fill in your details and we’ll get back to you in no time.