Improving financial literacy in New Zealand

Financial literacy is a vital skill for individuals and communities, and in New Zealand, there has been a growing awareness of the need to enhance financial knowledge and capabilities. This article provides an overview of the efforts undertaken by New Zealand government agencies to raise financial literacy levels among adults and students, as well as what other initiatives are being taken in both the public and private sectors to promote financial education. 

New Zealanders have faced challenges in terms of financial literacy. Research has shown that many adults in the country struggle with basic financial concepts, leading to issues such as inadequate retirement savings, debt problems, and difficulties in making informed financial decisions. To address these challenges, government agencies have taken several measures to promote financial literacy. 

Initiatives to boost adult financial literacy 

New Zealand government agencies have been actively involved in promoting financial literacy among adults through the following key initiatives: 

1. National strategy for financial literacy: in the early 2000s, New Zealand established the National Strategy for Financial Literacy, aimed at improving the financial knowledge and capability of its citizens. This strategy has provided a comprehensive framework for various initiatives. 
2. Te Ara Ahunga Ora: now known as the Office of Retirement Commission (and formerly known as the Commission for Financial Capability), plays a pivotal role in enhancing financial literacy. They conduct educational campaigns, provide resources and information through its website, which covers a wide range of financial topics, including budgeting, saving and investing. 
3. Workplace financial literacy programs: New Zealand workplaces have been encouraged to incorporate financial literacy programs for their employees. These programs are designed to provide workers with the knowledge and skills necessary to make sound financial decisions. 
4. Retirement savings initiatives: New Zealand has taken steps to improve the retirement savings landscape by introducing the KiwiSaver scheme. KiwiSaver is a voluntary savings program that helps people save for their retirement and offers member benefits like government contributions. 
5. Financial education in prisons: recognising that financial literacy can play a crucial role in rehabilitation and reducing recidivism, financial education programs have been implemented in New Zealand's prisons. 

Enhancements to the school curriculum 

Government agencies have also recognised the importance of integrating financial education into the school curriculum to provide students with essential skills early on. Changes have been made to ensure that financial literacy is included in the education system:

1. The New Zealand curriculum: financial literacy has been incorporated into the curriculum framework. The New Zealand curriculum encourages schools to teach students about financial capability, budgeting and understanding financial systems. 
2. Financial education resources: the Ministry of Education, in collaboration with organisations like Te Ara Ahunga Ora, has developed resources and teaching materials to assist educators in incorporating financial literacy into their lesson plans. 
3. Professional development for teachers: teachers have been offered professional development opportunities in financial education, enabling them to effectively deliver financial literacy content. 

Efforts beyond government agencies 

Apart from government agency initiatives, several other organisations and private sector entities are actively involved in promoting financial literacy in New Zealand: 

1. Financial institutions: banks and credit unions offer financial literacy programs and resources for their customers, helping them understand various financial products and services.  Check your providers website to see what they have available.  
2. Non-profit organisations: various non-profits, such as the New Zealand Federation of Family Budgeting Services, provide free budgeting advice and financial education to individuals and families. 
3. Online resources: numerous websites and platforms, such as MoneyTalks and FinCap, offer financial advice, tools, and resources to help New Zealanders improve their financial knowledge. 
4. Workshops and seminars: many private organisations and financial advisors conduct workshops and seminars on financial topics, making these resources accessible to the public.  If you have a financial adviser, reach out to them and find out if they offer this service and what content is available. 

In conclusion 

Financial literacy is a fundamental skill that can positively impact the lives of individuals and the overall economic well-being of a nation. New Zealand government agencies, along with various public and private sector entities, are actively working to raise financial literacy levels among adults and students. Through initiatives, education and resources, New Zealanders are becoming better equipped to manage their finances, save for retirement and make informed financial decisions. As the nation continues to address these challenges, it is evident that financial literacy will play an important role in helping to build a more financially secure future for all New Zealanders. 

At Resolution Life, we’re also playing our part.  There is information available to customers via our website in relation to insurance and how you can protect yourself and your family.  Already a customer with us?  You can also access our customer portal to view your policy online, update your contact details, or view your statements and correspondence, just to name a few.  If you haven’t used the portal before, register now!