27 Jun 2009

New Zealanders 'poor' over money matters

12:55 pm on 27 June 2009

New Zealanders have a long way to go to achieve a good understanding of their money matters, Retirement Commissioner Diana Crossan says.

Ms Crossan says the most concerning thing is that the group with the least knowledge has made no improvement since the commission's last survey three years ago.

The commissioner says the latest survey shows those with poor money skills include Maori and Pacific Islanders, younger people, women and those over the age of 65.

Ms Crossan says this group do not have a grasp of what compound interest is, or how their credit cards or inflation work.

She says this leaves people vulnerable to loan sharks and extremely high interest debt.

A scheme to teach children personal finance will be added to the school curriculum in August.