Financial literacy in schools long overdue
Teaching financial planning in schools is long overdue, particularly considering young people already struggle with their personal finances, according to a new survey released by RaboDirect.
In the national survey of 2,000 people, 73 per cent expressed the need for early financial education and supported the idea of teaching financial planning in schools.
The survey was released just as students across the country commenced the new academic year, with the Government’s new National School Curriculum coming into effect.
The former financial services minister Chris Bowen (pictured) announced last year that the new national curriculum would include Maths modules that focused on practical financial skills.
RaboDirect general manager Greg McAweeney said that the move had been long overdue, and that the issue of financial literacy had continually been brought up by various surveys.
“During the global financial crisis people lost a lot of money buying products from financial planners that they didn’t really understand, and they were looking to blame people for it, McAweeney said. “They really needed to take accountability for their own education.”
However, the industry has a part to play in simplifying products and Product Disclosure Statements and making sure consumers truly understand the risks associated with their investments, according to McAweeney.
He pointed to budgeting issues facing generation X and Y, resulting from lack of financial education.
“Younger age cohorts are more impulsive when purchasing on their credit cards than older generations,” McAweeney said. “Only one in five Gen Ys have received professional financial advice, compared to over half of baby boomers.”
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