Should schools teach financial education? 1


Fin ed in schools

A recent article on the Stuff website states that children want financial literacy lessons at school.

 

While I acknowledge that teachers are snowed under with all of the classes that they have to fit into the school curriculum, I believe that learning about money and how to manage it is a basic life skill that everyone should learn.

 

If it was up to me, I’d want the topics to include the following:

  • Basic financial record keeping – a budget
  • Saving, delayed gratification, and compound interest
  • Inflation and the Time Value of Money
  • Personal loans – with an example of borrowing to buy a car
  • Credit cards and store cards
  • ‘Pay day’ loans – calculation of annual interest on a short term loan
  • Hire purchases and ‘interest-free’ deals
  • How to buy your first home – how to apply for, and get, a home loan
  • Home loan types – principal and interest, interest only, revolving, table, reducing, etc.
  • Insurances – how to work out what insurance you need
  • Investments – shares, businesses, property, bonds, peer-to-peer lending
  • Retirement planning – how to work out how much you need, and how to save it
  • KiwiSaver facts and rules. Unbiased facts about what KiwiSaver is and what you can and can’t do with it.

One possible problem I can see is that companies who offer financial products will ‘offer’ their services, or sponsor this financial education in schools, but this comes with a huge risk of bias in the information provided.

No financial advice should be given – only education.  Factual information only.  Young minds are very impressionable!

What would you like to see taught in financial education classes?  Leave your comment below.


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One thought on “Should schools teach financial education?

  • Tim

    I’m ok with having a little emphasis being put into financial literacy when it comes to teaching children…. BUT the basis for most financial teachings are related to basic math skills… There is a certain behavior element which I think could be best influenced at hope with parents…(but it seems most parents lack those skills as well. ) But I see nothing wrong with having behavior based reachings on being a grown up and buying a house or any property and what it looks like to save for retirement and future purchases and generating passive income. Cheers!!!