Labour pledges compulsory financial literacy classes in schools

Labour will require financial literacy to be taught at all levels in all schools by 2025, if re-elected to Government.

Leader Chris Hipkins and Education Minister Jan Tinetti made the announcement today in Hamilton.

It's a policy aimed at addressing low levels of money and budgeting skills among school leavers, the party said.

Hipkins said it would mean young people would leave school knowing how to budget, open a bank account, manage bills and save and invest their money.

"We want all young New Zealanders to leave school knowing how to manage their finances. It's too important to be left to chance.

"Evidence tells us the current approach means too many students leave school without the financial skills they need."

He said over its time in power the Labour Government had grown financial teaching capability by making it a core part of the School Leavers' Toolkit. It had also encouraged partnerships with banks to provide education and advice in schools, he said.

"But more needs to be done."

Teaching of financial literacy would start in primary school and be taught mainly through maths and social sciences in secondary school, he said.

"All young people will leave school with a core knowledge of saving, budgeting, banking, borrowing, bills, taxes, Kiwisaver, mortgages and insurance.

"We're setting kids up with core skills that'll teach them how to save for a home or their retirement; or become the innovators and entrepreneurs of the future."

Tinetti said the programme wouldn't be an extra demand on teachers.

"Rather, it will make sure they have what they need, including access to existing programmes and partnerships and support through the newly established curriculum centre at the Ministry of Education."

She said schools would have flexibility on how the programme was delivered, but there would be essential learning outcomes at each year level.

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"An important part of our plan will be making sure teachers feel they have the necessary skills and resources to teach it, and that they need to prioritise it within their classrooms."

Tinetti, a former school principal, said she was "incredibly excited" by the policy, which she said would "teach kids practical, financial skills that they will use for life".