Financial literacy is a life skill and a wellbeing issue we can't afford to ignore

By Jacqueline Taylor, Board Chair, Life Education Trust NZ

I began my career in a primary school classroom, long before financial education was part of any formal curriculum. Back then, we focused on literacy and numeracy, trusting that life skills would come later. What I’ve learned since, through being on the Board of Life Education Trust, founding a financial magazine, helping launch a KiwiSaver scheme, and raising two children of my own,  is that financial literacy is not something that can be left to chance. It is foundational. And too often, it comes too late.

That’s why the recent work led by Te Ara Ahunga Ora Retirement Commission matters. The move to embed financial education into the national curriculum is not just timely, it is necessary.

For years, we have expected young people to step into an increasingly complex financial world with little more than intuition and fragmented advice. Yet the decisions they face, around debt, saving, investing and long-term planning  will carry real and lasting consequences.

The reality is, young people are already engaging with money in meaningful ways. They are thinking about independence, weighing up spending decisions, and forming beliefs about what is possible for their future. But without clear, practical guidance, those early experiences can just as easily lead to confusion or poor outcomes as they can to confidence.

Research and experience both tell us that the habits formed in adolescence matter. Learning to delay gratification, to understand the true cost of credit, or to connect saving with future goals, these are not abstract concepts. They are behaviours that shape financial wellbeing for decades.

What is often overlooked is how closely financial wellbeing is tied to overall wellbeing.

In my work across financial services, I’ve seen how money, or the lack of understanding around it, can influence almost every aspect of life. Stress, opportunity, relationships, even health outcomes are all affected by financial decisions. When people feel out of control financially, it rarely stays confined to their bank account.

The reverse is also true. When individuals feel informed and capable, they make clearer decisions, experience less stress, and are better able to plan for the future.

This is why financial literacy must be treated as a life skill, not a niche subject.

Encouragingly, organisations like Life Education Trust are already demonstrating what effective financial education can look like in practice. Their work, including the SMART$ theatre in education programme and SMART$ online, focuses not just on knowledge, but on application and helping young people navigate real-life scenarios in ways that are engaging and relevant.

This matters. Because information alone is not enough. Young people need to see how financial decisions play out in the context of their own lives, from everyday spending pressures to long-term choices like KiwiSaver.

The feedback from classrooms reflects this. When learning feels practical and relatable, students engage more deeply, ask better questions, and begin to build the confidence that underpins good decision-making.

But embedding financial education into the curriculum is only the beginning.

If we want this shift to succeed, we need to support teachers, equip schools with quality resources, and ensure conversations about money extend beyond the classroom. Families, communities and educators all have a role to play in normalising these discussions.

As both a parent and someone who has spent a lot of my career in financial education, I see this as an opportunity we cannot afford to miss.

We have the chance to equip the next generation not just with knowledge, but with confidence. Not just with information, but with the ability to make informed choices in a world that will only become more complex.

Financial literacy is not about creating future investors or economists. It is about giving young people the tools to navigate life with greater certainty, resilience and independence.

And that, ultimately, is an investment in all our futures.

Jacqueline Taylor is Chairperson of Life Education Trust, a former primary school teacher and financial education advocate. She co-founded JUNO KiwiSaver (now Pie Funds KiwiSaver) and lives in Hawke’s Bay with her two children.