Putting financial knowledge on the fast track
Friday, March 17th 2006, 7:58PM
I had the pleasure yesterday of attending the release of the ANZ/Retirement Commission study in adult financial knowledge in New Zealand.The commission and the bank need to be applauded for this piece of work. It is a very valuable document.
My take on the topic is that it is a bit like this argument we hear about broadband. The point being that affordable and fast broadband is essential for this country's economic development.
I believe financial literacy is also crucial for New Zealand's economic development and the growth of the savings pool.
The survey is pivotal in highlighting gaps in people's financial knowledge. Most surprising - and we will write about this next week - is the lack of understanding by pensioners of New Zealand superannuation.
Likewise the other big surprise is that mortgages are a riddle to many - this is more worrying considering the huge growth experienced in this area over recent years.
It was pleasant to see - as today's story shows - that people who get advice are pretty happy with the outcome. Hopefully officials working on adviser regulation, who seem to think otherwise, will note this.
I have been a big protagonist of improving financial literacy and am an advocate for getting it included into the school curriculum.
The survey gives us a good reason why this should happen. As Retirement Commission Diana Crossan rightly points out there is a strong correlation between financial knowledge and socio-economic status. If people want to improve their position in life (sounds dreadfully English that phrase) they need to have good financial knowledge.
This survey helps identify areas we need to work on.
Please send your thoughts on this Blog to Phil
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