21 Nov Our Children Need Financial Education
When I was a young boy going through the education system in New Zealand, we were taught subjects like geography, history, math’s, statistics, PE and so on. These are all interesting subjects, but in terms of giving me lifelong valuable skills that will set me up for life and help me to live in today’s modern fast-paced society, they do not.
What should we teach?
My thoughts are that, through a child’s secondary education, they should be taught and educated on:
- The importance of savings
- Different types of investments available – what is good and bad
- How to start a business and all the components needed to make a business successful – a third of New Zealand’s workforce is made up of small to medium businesses of which 50% will fail in the first 5 years – imagine the financial pain, suffering and hardship not to mention the stress placed on the family that everyone goes through when a business collapses – education at school on such important topics should be top of the curriculum, and there are plenty of business experts that can help
- The difference between good debt and bad debt (such as credit cards)
- Insurance – what it is, when and how it is needed, how much we need and how much we should be paying
- KiwiSaver and retirement planning – how much we will need and when we should start
- How to raise a family and have a successful relationship with your children and your spouse
- How to have successful relationships in a de facto family – considering almost half of New Zealand relationships are now de facto relationships.
- Trusts. How they work and don’t work. When and why you should have one and shouldn’t have one.
These are all relevant topics and issues we face every day until the day we die, and none of us are taught how to deal with any of these things from an early age. Nobody knows everything, but wouldn’t you like to be really well educated and smart on the above topics so you can make informed and educated decisions. Wouldn’t you like your children to be?
As a financial planner, I deal with these matters every day, and I know that the more educated we are as society and the earlier we can implement our knowledge, the far better off New Zealand will be.
So take the time educate yourselves, seek advice, and then pass that on to your children!
Insure and Grow Rich