We sit down with Simon Brown, Co-CEO of Banqer, to delve into the state of financial literacy in New Zealand and beyond. Simon shares his expertise on how Banqer is revolutionising financial education through its innovative online platform, which simulates real-world financial scenarios.
The State of Financial Literacy in New Zealand
- New Zealand ranks in the upper-middle tier globally for financial literacy. While not at the top, it’s certainly not at the bottom either. Countries like Australia, Canada, Germany, and Finland typically outperform New Zealand, while some Southeast Asian countries face more significant challenges. This places New Zealand in a decent position, but there is room for improvement.
Banqer’s Approach to Financial Education
- Banqer operates predominantly in schools throughout Australasia, transforming classrooms into virtual economies. Students manage mock online bank accounts, receive fictitious wages, and pay class expenses, mirroring real-world financial responsibilities. This hands-on approach treats students as adults, fostering engagement and practical learning.
- Simon explains that students, especially in primary schools, get a thrill from managing money like their parents. In secondary schools, the relevance of financial education becomes even more apparent as students recognise its practical application in their future lives.
The Importance of Early Financial Education
- Financial literacy is not extensively taught in schools, leaving a significant gap in essential life skills. Simon highlights that financial habits start forming as early as age three and are entrenched by age seven. Therefore, introducing financial education early is crucial for developing sound financial habits.
- Banqer starts working with students around year three (eight-year-olds), though Simon suggests that even earlier introduction could be beneficial. Teaching concepts such as money recognition, basic budgeting, and understanding debt from a young age can set the foundation for better financial management in adulthood.
Challenges and Opportunities
- Integrating financial education into already packed school curriculums is challenging. Schools often prioritise traditional subjects over financial literacy, despite its critical importance. However, Banqer’s success in reaching 50% of primary schools and 30% of secondary schools in New Zealand demonstrates the growing recognition of financial education’s value.
- Simon notes that Banqer aims to reach a broad spectrum of students, including those in minority and socio-economic communities. Ensuring that financial education is accessible and relevant to all students is key to improving overall financial literacy rates.
Conclusion & Key Takeaways
This episode with Simon Brown sheds light on the state of financial literacy in New Zealand and the innovative solutions Banqer is providing. While New Zealand is not at the bottom of the global financial literacy rankings, there is still significant room for improvement. By starting financial education early and making it accessible to all students, we can foster a generation of financially literate adults.
1.Start Early: Financial habits begin forming as early as age three, making early financial education crucial for developing sound financial management skills.
2.Practical Learning: Banqer’s simulated real-world financial scenarios engage students effectively, treating them as adults and making financial education relevant and practical.
3. Accessibility and Inclusivity: Ensuring financial education reaches a broad spectrum of students, including those from minority and socio-economic communities, is essential for
improving overall financial literacy rates.
For a no obligation discussion to see how we can help you on the path to wealth, please contact us.
Disclaimer:
The information in this article is general information only, is provided free of charge and does not constitute professional advice. We try to keep the information up to date. However, to the fullest extent permitted by law, we disclaim all warranties, express or implied, in relation to this article – including (without limitation) warranties as to accuracy, completeness and fitness for any particular purpose. Please seek independent advice before acting on any information in this article.
