Money and goals

I spent an afternoon with some 20-something student friends of mine. The topic of the Money Survey I was running (for 12-29 year olds) came up.

We talked about what they had learned at school about personal finance.

Very little. The subjects of accounting and economics always had a business focus. It is not mandatory for NZ schools to teach financial literacy.

Only a small portion of the prepared national Unit Standards for personal financial literacy have been approved. I would have thought approving the rest would be a Code Red High Priority within the Ministry of Education and NZ Qualifications Authority? Seems not.

We talked about when financial literacy should be taught.

They revealed it wasn’t until they left home (or had to start managing tertiary student loans and allowances) that they started taking their money responsibilities seriously.

So even if schools are instructed to teach Money 101, will teens actually learn?

We talked about the financial literacy support they receive from their university.

Short answer… None.

Only the note at the bottom of their student loan statement saying “You need to pay this back.” The university (ie. the government) loans them large sums of money without ensuring they have the skills to manage it. That’s irresponsible.

We talked about whether they felt university was an efficient way to learn stuff.

Short answer… No.

We talked about what they would do if they didn’t have to worry about money.

This sharp turn in the discussion took them by surprise. Their brains (full of study for pending exams) initially couldn’t compute what this would mean, then slowly shy grins appeared on their faces. They - almost embarrassedly - shared the dreams, adventures and goals they’ve put to one side as they plod through their study.

A spark of energy and enthusiasm flowed around the group as they reconnected with aspirations they had shelved. Some begrudgingly confirmed that completing their degree was a necessary stepping stone to achieving their goal. Others admitted they weren’t really sure where the next few years were going to lead them, but chances are it wouldn’t be towards their dream.

I love talking with people who share their dreams, especially when I know they are perfectly capable of achieving them. It saddens me when their beliefs around money and education get in their way.

With the entire globe complaining about the economy, perhaps the focus shouldn’t be solely on teaching people about money? Let’s talk about turning dreams into reality.

Personal money management is just one part of that process.

Stuart Fleming

Creator of the Money Mindset Mob.

Enthusiastic believer in independent teens.

Tags: financial literacy, goals, Stuart Fleming