A majority of high school students think they're knowledgeable about managing their money. But teachers believe their pupils' money management skills are low.
That is one of the findings from a survey that has been released as part of Money Week. It was carried out by the New Zealand Council for Educational Research on behalf of the Commission for Financial Capability (CFFC).
The survey involved 2,646 students from 24 schools. Just over 70 percent said they knew a lot about how to manage their money, and 84 percent believe it is important to get advice.
But only 19 percent of teachers believe their students' money management skills are high.
The research found that nearly 90 percent of students have a bank account and 60 percent have EFTPOS cards.
About half of the students use internet banking, and about 20 percent have used telephone banking.
Cash is still the most common way of making a purchase.
About a third of students frequently or sometimes use a credit card.
The most common way of earning money is doing jobs at home, or working at a part-time job.
Pocket money and gifts of money are common.
About 60 percent of students have sold possessions for money at some time. Seven percent say they do this regularly.
Fifty-one percent of students regularly save, and another 37 percent sometimes save. The main way to save is through a bank account (71 percent), but 57 percent say they keep their money in a safe place.
Borrowing is common – 67 percent have borrowed money and 79 percent have loaned money. The researchers say it is likely that these are "small, short-term transactions with family or peers".
Eighty-eight percent of students agree it is okay to borrow money if they can pay it back and 79 percent believe it is important to get advice about borrowing money.
Fifty-seven percent know how to make a budget, but only 27 percent have one.
Seventy-four percent know how to set financial goals, but only 57 percent have done so.
Eighty-five percent shop around for the best price before buying something.
The study found teachers and secondary school leaders were virtually unanimous in agreeing that it is important to be able to manage money.
Around three-quarters of teachers thought that school should be a major source of financial learning, while just 14 percent of students said that they learned a lot from school. Half said they learnt little or nothing from school.
"Teachers and secondary school leaders were almost unanimous in the importance of teaching financial capability at school, but only a minority of schools gave it a strong focus. This is something the commission is helping to address," says CFFC education manager Angela Clemens.
One challenge for schools is the issue of where to fit financial capability lessons into the curriculum.
The study found "it often becomes ad hoc and many teachers saw it as additional to their subject and not easily integrated".
Ms Clemens says "It appears that the extent to which financial capability is valued by schools and individual teachers influences the extent to which it is integrated into subject areas".
The CFFC is working with a cluster of schools in Auckland on a financial capability education programme. Around 3,000 students are involved.
The programme supports teachers to find out more about new teaching and planning materials that are available from the Ministry of Education.
A new program is underway in south Auckland with a similar goal.
The CFFC says it is considering how to extend the programmes to other parts of the country.
3 News
