Equipping all young New Zealanders for their financial futures.
Earlier this year the first government-funded financial capability programme was launched called Sorted in Schools. This is being rolled out in schools around the country and if all goes to plan, by 2021 all secondary school students should have access to the programme.
The programme focuses on giving children a headstart in managing their financial future. This doesn’t mean financial capability will be a separate subject in schools. It simply means that it’s being woven into existing curriculum topics such as maths, social studies, digital technologies and English. Teachers will be able to adapt their teaching and include this financial capability element giving all students a better understanding of money!
For some people this may seem unimportant but for most it will be seen as a positive step in enabling all young New Zealanders to be able to flex their financial wings. We certainly don’t want them to become greedy but having a clear understanding of some basic financial facts has to be a good thing.
When we look at the world we live in today compared to 20 years ago, the way we purchase things and the cost of living has certainly changed. We now live in a cashless society with cash being a thing of the past. Cards and Applepay are the future but it’s still important to take the time to explain the difference between a debit card and a credit card. It may seem obvious to us as adults but to the younger generation it simply looks the same – a plastic card which allows you to buy things!
We are also seeing so many pay later options, pay day loans and peer-to-peer lending, these have always been around in some format or another but it feels that these are so much more ‘the norm’ and ‘commercially accepted now. Whether this is a good thing we will have to wait and see but there does seem to be a certain level of acceptance that as technology develops there will be many more ways in the future to get into debt or to invest. That is why this initiative in schools is so important, trying to create a certain level of understanding and awareness around the concept of money, debt and investment.
Students need to be empowered to manage their money in a way that allows them to do the many things they’d like to in life. Let’s make sure they all leave school knowing how to make money work for them and grow it sustainably for their future.
To read more on the Sorted in Schools programme clicks HERE