Starting in 2027, financial education will become a mandatory part of the school curriculum for students in New Zealand, beginning as early as Year 1. The government announced today that this subject will be included in the Social Sciences Curriculum.
During an announcement at Tawa College in Wellington, Education Minister Erica Stanford highlighted the importance of teaching young students basic financial concepts, such as distinguishing between needs and wants, and understanding the difference between spending and saving. As students progress, they will learn more complex topics, including budgeting, interest rates, discounts, and insurance.
Stanford explained that the policy was part of the government’s pre-election commitment, emphasizing that financial literacy is a vital skill for young people. While some schools already teach financial education, Stanford acknowledged that this instruction is not consistently offered across the country.
The Retirement Commission has collaborated with the Ministry of Education to develop a new curriculum and resources to support the initiative. Yasmin Frazer, the Commission’s learning lead, stressed that starting financial education early is crucial. She pointed out that key concepts from mathematics and social sciences should be introduced early, as they form the foundation for understanding more advanced topics, like compound interest.
Frazer also noted that the introduction of compulsory financial education is a step in the right direction. “Our early research indicates that only about a quarter of students receive any form of financial education, and it’s often not aligned with the curriculum,” she said.
Finance Minister Nicola Willis added that many people leave school without essential financial literacy, which can lead to poor financial decisions and significant debt. She believes that teaching children these skills from a young age will help them make better decisions throughout their lives.
At Tawa College, Year 12 students shared their thoughts on the importance of financial education. Bethaney Burtt-Mihaere, a student in a personal finance class, expressed support for the idea of mandatory financial lessons. “It prepares kids for the future. In school, you don’t really learn much about money, and it’s useful if you want to buy a house or manage finances later on,” she said.
Lexi Najbert added that some teenagers are not well-versed in financial matters. “Some people just don’t have those conversations at home,” she said.
Samantha Te Awhe echoed this, explaining that while students are expected to understand money management, it is often not formally taught. “The more you know about it, the easier it becomes,” she noted.
Teacher Joe Bibby supported the move, highlighting the disparity in financial knowledge among students. “Some students come from families where they’ve learned a lot about finances, while others have had little exposure,” he said. “If they learn this before going out into the world, they’ll be more confident in their financial decisions.”
However, Bibby raised a concern that schools might need to adjust the time spent on other subjects to accommodate financial education. “Any time we add something new, we have to reduce time spent on other topics,” he explained.
Heidi Hayward, a spokesperson for the Principals Federation, said that schools need more clarity on the new curriculum. While teachers already cover some financial education in the mathematics curriculum, she cautioned that more details are needed to understand how the changes will affect existing lessons. She also mentioned that the financial education needs could vary depending on the community, with some schools focusing on practical skills like budgeting and others covering more advanced topics like investing.
Despite these challenges, Education Minister Stanford is confident that teachers will be able to incorporate financial education into their existing schedules without major difficulties. “We are introducing a small amount of content in each year, building up through to Year 10, which should be manageable,” she said.
This initiative aims to ensure that all students leave school with the essential financial skills they need to make informed decisions throughout their lives.
