1. Using Mathematics to build financial capable learners for the 21st century (secondary) – workshop 4
Paul Newsom

2. Why do we need to teach financial literacy?
Give here a bigger picture perspective. The recent quote below from Huffington says it.
‘Teaching students the concepts of saving, paying bills on time, investing and how the borrowing process works will result in improved credit scores and an increase in spending, all of which leads to an improved economy. It could mean lower interest rates, looser lending standards, lower costs, lower unemployment rates and less household debt. When we're saving and investing responsibly, the economy improves.’
Huffington Post 15 March 2015.
Research shows that adult money habits are being formed by the time children reach the age of seven. (Katie has a printed copy of the press release on this research)
Why do we need to teach financial literacy?

3. We’ve changed the way we manage money
We’ve changed the way we manage money, but education on how to manage money has not kept up.
What’s changed?
Ability to spend money that is not your own (credit cards, interest free credit)
The transfer of risk from government to employer to individual (pension and healthcare)
More dealings with more financial providers, usually electronically . The bank is no longer the only option . Stores offer financial terms, Loan companies are in every town (look out for the loan sharks), even supermarkets have their own credit cards. High interest loans
Students are having to make important financial decisions at a younger age
Student loans – gone is the day of free education and students are now leaving uni with considerable debt
Meaning the risk of getting it wrong is higher, and the consequences can be far reaching and long term.

4. Student loan debt in New Zealand has risen 66% since 2010
Average student loan debt in New Zealand has risen 50% since 2011 to $21,000
The total student debt in NZ is rising by about $1bn per year:
$10bn
$13bn
$15bn+
(of which $2bn (
Source: NZUSA Sept 2014 (NZ Union of Students Association)
Student debt is not going up because the number of students in tertiary education is increasing - students fell about 0.8% in 2013 (2014 data not available on MoE website).
We know of students who graduate with no debt, so it is possible to do (if they are enterprising and financial y capable).

6. WHOSE JOB IS IT to teach financial literacy?
Is financial education the responsibility of the parents or the school?
Parents are probably not the best educators – what effect does parents good/bad money habits have on their children?
Family conversations are often about teenage social issues, homework, holidays….. but how often are they about how we manage our money?
Research shows that adult money habits are being formed by the time children reach the age of seven.
Cambridge university study published by the Money Advice Service, May 2013.
If it is the job of the school, then which teacher? The intent of the curriculum is that it is taught cross curricular, just like numeracy and literacy.
We know of very few schools where it is the job of every teacher to teach Financial Literacy.
PARENTS
SCHOOLS

7. NEW ZEALAND Optional AUSTRALIA
Included as a theme that schools can use for cross curricular teaching
AUSTRALIA
Compulsory in maths curriculum since 2011
UNITED KINGDOM
Compulsory in maths and citizenship curriculum since 2014
FIJI
Compulsory in curriculum since 2011
What’s happening elsewhere in the world?
Korea, Japan, Malaysia – well established.
Australia – compulsory in maths curriculum since 2011
UK – compulsory in maths and citizenship curriculum since 2014
Fiji – compulsory in curriculum since 2011 – talk abou t the project we did in Fiji
In some countries it is a standalone subject, in others it is cross curricular.
NZ – included as a theme that schools can use for cross curricular teaching (so optional) and somewhat teacher dependant.

8. The Challenges
Evidence Overcrowded curriculum Teacher training and confidence Lack of teaching and learning resources
This is an international perspective, so if this is the case in NZ, you are not alone.
Evidence – is it needed?
Overcrowded curriculum - who teaches it?
Teachers lack training and confidence
Lack of teaching and learning resources
Source: Sue Lewis - Her Majesty’s Treasury, UK. International Financial Literacy Expert Group 2012.
We have already touched on the need for Financial Literacy.
For the other challenges, further research done in 2014 contains some interesting findings :

9. Talk about how math is the key to being able to manage your financial well being. From simple calculations to compound interest it is easier when you are familiar with the maths.
Young people are confronted with making many tough financial decisions and are inadequately prepared to make these decisions due to lack of financial literacy.

10. Numeracy and financial literacy do seem to differ by socioeconomic status, with poor students actually showing much better numeracy skills (88%) than their wealthier counterparts (70%) (Jayaraman2018).
Lack of financial literacy then can lead to undesirable outcomes such as excessive debt, loan default, and personal bankruptcy. (Jayaraman2018)

11. Research has proven that a good foundation in math helps understanding and application of financial resources.
(PISA) survey of 15 year olds found financial literacy to be low in many of the 34 Organization for Economic Cooperation and Development (OECD) countries. When they compared the personal financial literacy of high school students in New Zealand, the United States, and Japan: though all three countries fared poorly, Japan fared better than the others. Thus, low levels of financial literacy is a worldwide problem.

13. Talk about how to integrate it with other subject areas – excel in IT or project based learning with budget or calculations in Social studies or business.
Or to use it as naturally occurring evidence towards numeracy

18. Cool rooms
91030 – apply measurements in solving problems – 3 credits – internal
Top Dog
91026 – apply numeric a reasoning in solving problems – 4 credits  - internal

19. http://youngenterprise. org. nz/find-resources/

25. Pick Up Go http://youngenterprise. org. nz/find-resources/

26. Pick Up Go http://youngenterprise. org. nz/find-resources/