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.