Being ready for the workforce has never been more important, as young people face increasing costs and pressure to find their financial independence and learn to save and budget. It’s important to equip them with the tools to make it easier.
From the age of 18 to 34, many young people are making financial decisions that can have a profound impact on the rest of their lives, such as getting a mortgage to buy a house, or taking on consumer debt and borrowing.
Knowing that New Zealand compares poorly on financial literacy according to OECD data, we believe students should leave school with a core basic knowledge about money, including saving, budgeting, banking, investing, setting financial goals, consumer rights, borrowing, credit cards and managing debt.
This means teaching them about how to do a budget, how to open a bank account, manage bills, and even how to invest their money as part of a basic set of financial life skills.
The earlier that young people learn about money and how to manage their finances, the more that good habits will stick. It will have an impact on all parts of their life, especially their mental health and anxiety. It is about establishing core skills and investing in their future.
