Reserve Bank backs investment in financial education

Reserve Bank Governor backs investment in financial education

3 September 2012

Reserve Bank Governor Alan Bollard believes financial literacy is an important life skill for all New Zealanders as money management becomes a national focus during New Zealand’s inaugural Money Week.

Money Week, from 2-8 September, is an initiative from the Commission for Financial Literacy and Retirement Income aimed at helping New Zealanders learn about everyday money.

Dr Bollard, who is also Chair of the National Strategy for Financial Literacy Advisory Committee, says to achieve a financially literate population we need to focus on developing the quality of financial education in New Zealand.

“There is an increasing understanding of the importance of financial literacy around the world and I believe developing this capability begins in the classroom. We need to equip our children with the skills to manage their money so they make wise decisions in their future.”

“Investing in financial education in schools will also mean younger generations have an understanding of the global financial context which is especially important during a recession,” he says.

Retirement Commissioner Diana Crossan agrees and says teaching children about money now will result in higher savings and lower debt levels in the future.

“Last year Australia announced a $10 million funding programme over five years to get financial education into more classrooms. If New Zealand doesn’t follow suit and invest money and resources into financial literacy programmes it is our children who will suffer.”

“I have seen for myself how kids benefit from learning about the concepts of budgeting, saving and investing. They’re interested and engaged and can’t wait to go home to talk to Mum and Dad and show them what they’ve learned.

“We need future generations to have the skills required to tackle the complex financial issues of today’s society. The Government needs to act now and put more money into our children’s financial future,” she says.

For more information on Money Week visit www.moneyweek.org.nz

ENDS

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