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 “Students need to be able to understand basic financial concepts to manage their lives effectively. Of most concern is that very few answered questions about credit card interest correctly.

A trial to teach young people money skills at school has been overwhelmingly positive, according to Retirement Commissioner Diana Crossan.

The trial ran in ten schools last term to test a framework to help teach students about managing everyday money. The country’s banks helped fund the trial.

“The world of finance is changing rapidly and is increasingly complex. The Retirement Commission is working towards young people having the necessary skills and information to make informed and wise decisions about money when they leave school.

“We are very pleased the Government has recognised the value of keeping this educational project alive,” says Colin Blair. “The competition is an innovative way to encourage young people to think about future changes in the age structure of our society, and the implications in the area of retirement income policy. It encourages students to discuss the issues with parents and others in the community.”

Winners were announced at an awards ceremony at Parliament today hosted by the Hon Steve Maharey, Minister of Social Services and Employment.

Professor Mandell is an authority on the development and teaching of personal financial education to young people.

“Western society is becoming more financially complex, with a confusing array of choices and options. Yet the level of youth financial literacy today can only be described as dismal,” said Professor Mandell.

“By failing to provide our children with a sound understanding of personal finance, we can expect many of them to make financial mistakes and errors as adults.”

Kelley Hamilton, who was a year 13 student last year, received an impressive 90.5 percent and also achieved full marks in the investment question sponsored by the Securities Commission.

Enterprise New Zealand Trust board member Paul Lockey, Mt Albert Grammar School Principal Greg Taylor, prize winning student Kelley Hamilton and Securities Commission board member Annabel Cotton.

Frequently asked questions and answers

Why is the framework necessary?

The Retirement Commission is leading the project aimed at developing a framework for schools to assist in teaching students money skills so that when they leave school they can make informed financial decisions.

Retirement Commissioner Diana Crossan says the significant contribution from the country’s banks means the trial can proceed more quickly than expected.

In 2003, the Commission initiated a project to provide guidance to schools to teach personal financial education as part of the curriculum. A key goal of the project was to develop a Personal Financial Education Framework for Schools.

The Commission for Financial Literacy and Retirement Income is partnering with others to offer new approaches to help young people adapt to the major changes that have occurred over the past few decades so that they have money skills for life.

The Commission has a strong focus on financial education in schools and is a founding sponsor and supporter of  Young Enterprise Trust's programme "Pathways to Financial Literacy".