Financial education a waste of time
A whole day spent listening to experts on financial literacy and money education.
Was I mad?
Apparently so! I was at Financial Literacy 09 in Wellington, a one-day summit put on by the NZ Retirement Commission and attended by 200 Suits. Yup, The Suits from banks, financial institutions and government ministries all hoping the speakers would either a) pat them on the back for doing a good job in the face of global economic meltdown, or b) identify a niche they had missed and could profit from.
Or maybe c) they were truly interested in improving the nation’s financial literacy. The jury is still out…
Minister of Finance the Hon. Bill English got the ball rolling, explaining how The Suits mustn’t assume the public are ignorant or wrong when it comes to their own personal finances: people make decisions based on the information/experience/beliefs they have at the time.
He cautioned how the government implies “We will look after you” (in regards health, education, retirement, etc) yet in the same breath insists “You must save more.” How confusing is that for Joe Average?
In sharing her research from around the globe, Dr Annamaria Lusardi (Professor of Economics at Dartmouth College, USA) highlighted the gap between financial confidence and ability. Basically, people think they are money-clever, but aren’t.
“Financial literacy should not be taken for granted… illiteracy is widespread,” Annamaria said. She also encouraged The Suits to use communication that doesn’t rely on figures and numeracy to get their information across. Nice one!
According to Wendy van den Hende (Chief Executive, Personal Finance Education Group, UK) “Never has the need for financial education been so obvious.” Her organisation’s mission is for all young people to leave school with the confidence, the skills and the knowledge in financial matters so that they can take part fully in society. So simple, so powerful!
Embarrassingly, her efforts to ensure the UK invests heavily in getting financial education into schools leaves New Zealand choking in a cloud of dust, miles behind. Check out the UK national My Money Week.
Then we heard a youth perspective (finally!) as two Wellington secondary school debating teams battled over the statement: That financial education is a waste of time!
I couldn’t decide how much of their verbal ammunition was personal opinion or delivered to enforce their affirmative or negative view but either way, some tremendous quotes resulted:
“If parents have really bad financial skills, it’s highly unlikely they’ll pass on good financial skills to their children.” Nick Cross, Scots College
“The only thing more dangerous than not know about something is knowing half of something.” Maria English, Samuel Marsden Collegiate School
“Schools have the responsibility for preparing you for life and financial education is part of that, just like reading and writing.” Julia Wells, Wellington East Girls’ College
And Julia again, in rebuttal to the suggestion that children can easily learn money skills through life experience:
“Do we expect our children to learn about ’stranger danger’ through life experience?” Funny!
I wish we could have heard more from these students - after all they are the generation who will be returning the world to economic stability. How would they like to see it happen?
Retirement Commissioner Diana Crossan then shared how the www.sorted.org website had 30% more traffic during January 2009 than the previous year. Given how greater numbers of the public are turning to banks for financial education, she issued a challenge to The Suits:
“You (the banks) have the ears of New Zealanders - tell them what they need to know.”
To prove I didn’t fly all that way just to eat the yummy lunch, here’s my Top 3 Thoughts from the day:
- The Retirement Commission is on the right track (I know, I’m stunned too considering it’s a Government Deparment) and is doing really good work for average Kiwis. They understand that for people to prepare for all life-stages (not just retirement), personal financial responsibility is a key part of that. Their www.financialliteracy.org site is one to keep an eye on.
- Considering how fast the world is changing (and how quickly the economic ‘crisis’ hit) I’m not convinced The Suits in bureaucratic-heavy offices are the best ones to a) decide and b) implement what is most useful for Joe Average. [Wouldn't a viral, online, lively movement of individuals taking responsibility for their own learning be simply remarkable?]
- If adults are serious about using school to prepare children for life, then financial literacy MUST be a compulsory component of formal education. My fingers are crossed The Suits can allow the teachers to teach it in a way that is enjoyable and relevant…
Stuart Fleming
Creator of the Money Mindset Mob.
Enthusiastic believer in independent teens.
Additional comments powered by BackType