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Financial capability

Financial capability is highlighted in The New Zealand Curriculum as an example of the type of theme that schools could use for effective cross-curricular teaching and learning programmes.

Financial capability progressions

The financial capability progressions set out suggested curriculum based learning outcomes across a range of learning areas. The learning outcomes in the progressions are aligned to The New Zealand Curriculum levels 1–8.

Schools can use the financial capability progressions for support in identifying key concepts for learning.

"These progressions have enabled us to identify where we currently sit on the spectrum and what next steps are involved to enable financial capability to be embedded."

Emma Johnson, Takapuna Grammar School

Word 2007 icon. Financial Capability Progressions (Word 2007, 58 KB)

The financial capability progressions contain suggested curriculum based learning outcomes across a range of learning areas. For senior secondary teachers, the listed achievement objectives, achievement standards, and unit standards may provide, or be adapted to include, contexts or aspects for financial capability teaching.

Word 2007 icon. Development of the Financial Capability Progressions (Word 2007, 77 KB)

This document explains the rationale behind the design of the new materials and evidence that informed the new progressions.

Managing money and income

Theme: Money

Level 1

Recognise coins and notes.

Describe ways of using money (cash) for different purposes.

Recognise that money has worth, that is, value.

Level 2

Use coins and notes for simple transactions – give and receive change.

Discuss different ways of paying and receiving payment for goods and services, for example, cash, EFTPOS, bartering.

Discuss the purpose of money, that is, may be exchanged for items of equal value.

Level 3

Use coins and notes for transactions and calculate correct change.

Describe different ways of paying and receiving payment for goods and services, for example, EFTPOS, debit cards.

Describe the purpose of money, for example, paying for goods, services.

Level 4

Recognise the value of New Zealand’s currency in relation to currencies of other countries.

Compare different ways of paying and receiving payment for goods and services, for example, debit cards.

Level 5

Convert New Zealand dollars into other currencies (and vice versa) and give examples of when this is useful.

Compare and contrast different ways of paying and receiving payment for goods and services, for example, debit cards.

Level 6

Calculate exchange rates against New Zealand’s currency and explain effects changes have on individuals, for example, planning an overseas holiday.

Describe different ways of transferring money between people and organisations, for example, Internet banking, debit cards, emerging technologies.

Level 7

Calculate exchange rates against New Zealand’s currency and explain effects changes have on New Zealand's economy, for example, imports, exports.

Compare different ways of transferring money between people and organisations, for example, Internet banking, debit cards, emerging technologies.

Level 8

Calculate exchange rates against New Zealand’s currency and explain effects changes have on the global economy, for example, trade, inflation.

Compare and contrast different ways of transferring money between people and organisations, for example, Internet banking, debit cards,  emerging technologies.

Theme: Spending

Level 1

Investigate what people “need to” spend money on, for example, food, clothing, shelter.

Discuss why and how people make choices about spending money, for example, when buying food for lunches.

Level 2

Explore spending choices for a given amount of money and recognise that people's spending choices differ, for example, food, clothing.

Discuss the concept of getting value for money when spending, for example, when buying family groceries.

Level 3

Discuss why individuals/whānau may have different spending priorities.

Investigate different ways to get value for money when spending, for example, when buying household items.

Level 4

Compare individual spending choices and priorities at different stages of life.

Describe different ways to get value for money when spending, for example, when buying clothing, toiletries, haircuts.

Discuss external factors that can affect peoples' financial choices, for example, advertising, peer pressure.

Level 5

Compare spending choices and priorities of individuals/whānau in relation to age, circumstance.

Compare different ways of getting value for money with regard to spending.

Describe external factors that can affect peoples' financial choices, for example, advertising, peer pressure. 

Level 6

Describe different ways of spending, for example, online purchasing, layby, hire-purchase, phone plans.

Explain external factors that can affect peoples' financial choices, for example, advertising, peer pressure.

Level 7

Describe different views about making wise spending choices in relation to age and circumstance.

Explain different ways of spending, for example, online purchasing, layby, hire-purchase, phone plans.

Describe and explain the effects of inflation on spending.

Level 8

Describe and explain different views about making wise spending choices in relation to age and circumstance.

Describe and explain the impact(s) of external factors on spending, for example, inflation, exchange rates, GST.

Describe and explain different sources of financial advice in relation to wealth creation.

Theme: Credit and debt

Level 1

Discuss the responsibilities in borrowing and paying back.

Level 2

Give examples of using credit to buy goods and services.

Level 3

Explain how credit and interest works.

Level 4

Describe the cost of credit from different financial institutions.

Discuss differences between “good” and “bad” debt.

Level 5

Compare banks and other financial institutions according to interest.

Explain what credit worthiness means for an individual.

Explore examples of “good” and “bad” debt including manageability of debt and its long term impact, for example, purpose, use, providers and types of credit, long term, short term debt.

Level 6

Calculate and compare interest rates charged by banks and other financial institutions.

Describe and explain the relationship between credit worthiness and the cost of credit, for example, unsecured vs secured loans, credit rating.

Describe manageable and unmanageable credit and debt, for example, use of credit, types of credit, interest payment, tax.

Make decisions about incurring “good” and “bad” debt in relation to age, income, and circumstance, for example, purpose, providers and types of credit, long term, short term debt, interest rates.

Level 7

Demonstrate understandings of interest charged by banks and other financial institutions in relation to amount borrowed, interest rate, time and risk.

Identify credit options to manage finances, for example, credit cards, personal loans.

Describe the future financial responsibilities of utilising tertiary study funding options.

Describe the consequences of making decisions about “good” and “bad” debt in relation to age, income, and circumstance, for example, purpose, providers and types of credit, long term, short term debt, interest rates.

Level 8

Describe and explain interest charged by banks and other financial institutions in relation to amount borrowed, interest rate, time and risk.

Demonstrate understandings of credit for personal financial management, for example, housing.

Compare and contrast credit options and recommend strategies to manage finances.

Describe and explain the consequences of making decisions about “good” and “bad” debt in relation to age, income, and circumstance, for example, purpose, providers and types of credit, short term/long term debt, interest rates.

Theme: Saving and investing

Level 1

Discuss why and how people save money.

Level 2

Identify the benefits of saving money.

Explore simple interest through hands on activities.

Level 3

Discuss the concept of getting good returns on savings.

Explain simple interest.

Recognise that peoples’ saving choices differ.

Level 4

Investigate and evaluate the role of banks.

Calculate simple interest.

Compare differences in saving choices and outcomes between individuals/whānau/groups.

Investigate how varying interest rates affect lenders and borrowers.

Level 5

Compare banks and other savings institutions according to risk, interest paid, and access to funds.

Explain and calculate compound interest.

Explore how age, income, and circumstance affect financial decisions.

Investigate different investment products as a way of saving, for example, KiwiSaver.

Level 6

Calculate and compare interest rates, including compounding interest, paid by banks and other financial institutions.

Describe how age, income, and circumstance affect financial decisions, for example, holidays.

Describe saving and investment options for individuals/whānau/groups, for example, KiwiSaver, term deposits, bonds, property, shares.

Level 7

Describe and explain interest paid by banks and other financial institutions in relation to amount invested, interest rate, time, and risk.

Describe and explain how age, income, and circumstance affect financial decisions, for example, buying a car.

Calculate and compare inflation rates on the real return of investments.

Describe and explain investment options in relation to age, income and circumstance, for example, KiwiSaver, term deposits, bonds, property, shares.

Level 8

Describe and explain interest paid by banks and other financial institutions in relation to amount invested, interest rate, time, and risk.

Describe and explain how age, income, and circumstance affect financial decisions, for example, tertiary study, donations to charity.

Plan a simple long term personal investment portfolio, for example, KiwiSaver, workplace savings schemes, property, sharemarket.

Theme: Income and taxation

Level 1

Describe ways in which people earn or receive income.

Discuss how having more or less money affects spending choices.

Level 2

Identify regular and irregular sources of income, for example, wages, gifts, prizes.

Discuss how having more or less money affects spending choices for individuals/whānau.

Level 3

Explore different sources of income, for example, interest, wages, salary.

Explore how having more or less money affects spending choices for individuals/whānau/groups/communities.

Level 4

Compare differences in income from various sources, for example, wages, dividends, transfer payments (benefits).

Explain how income contributes to well-being of individuals/whānau/groups.

Discuss why people pay income tax, and how it is collected.

Level 5

Investigate the way people get paid including wage and salary deductions.

Make income-related calculations for personal financial management, for example, hourly, weekly, net pay, annual gross pay.

Compare different rates of taxation commitments.

Describe how taxation contributes to community well-being. 

Level 6

Interpret income-related calculations for personal financial management, for example, pay slips.

Describe the effect of life-stage factors on personal income sources, for example, pocket money, job, investments.

Perform GST calculations.

Describe different income taxes and deductions and their impact on income, for example, personal tax, withholding tax, PAYE.

Explain taxation and other deductions or payments relating to personal income, for example, KiwiSaver, student loan repayments.

Level 7

Make an informed decision relating to personal income and explain its consequences, for example, further education, change of job or career, changes in habits and spending priorities.

Explain the effect of significant events at different life-stages on personal financial income, for example, tertiary study, leaving home.

Explain various types of income, and measures of income, for example, salaries, bonuses, commission, dividends, interest.

Describe and explain how different taxes, for example, rates, are spent at a local level.

Describe and explain an issue/s around taxation relating to individuals, for example, duty on international purchases.

Level 8

Explain options to increase personal income, for example, secondary income, promotion, pay increase, unearned income.

Explain the effect of significant events at different life stages on personal financial income, for example, buying a home, going overseas.

Describe and explain how different taxes are spent at a national level, for example, Government budget.

Describe and explain an issue/s around taxation relating to the New Zealand economy.

Theme: Budgeting and financial management

Level 1

Give examples of “needs” and “wants”.

Level 2

Explain simple budget choices that prioritise “needs” and “wants”.

Level 3

Create a simple budget for an activity or event, prioritising “needs” and “wants”.

Use simple money management tools to monitor a given budget, for example, a spreadsheet.

Identify regular financial commitments whānau have to make.

Level 4

Create a budget for a specific activity and timeframe.

Use money management tools, including online and hard copy bank statements, to monitor a given budget.

Identify regular financial commitments individuals/whānau/groups have to make.

Level 5

Create an individual/whānau/group budget prioritising “needs” and “wants”.

Use financial management tools to monitor a given budget.

Describe life-stage financial event/s and the financial decisions required, for example, starting secondary school.

Level 6

Prepare a budget to manage individual/whānau/group finances.

Monitor and adjust a given budget to achieve goals.

Describe life-stage financial event/s and the financial decisions required, for example, getting a part-time job.

Interpret personal financial documents, for example, statements, accounts.

Level 7

Prepare, monitor, and adjust a budget to reflect changing financial circumstances, and achieve goals.

Plan for life-stage financial event/s and make the financial decisions required, for example, going flatting, getting a job, retiring.

Reconcile personal records with financial documents, for example, receipts, statements.

Level 8

Prepare, monitor, and adjust a budget to reflect changing financial circumstances, and achieve goals.

Plan for life-stage financial event/s and make the financial decisions required, for example, tertiary study, buying a home, going overseas.

Reconcile personal records with financial documents, query inaccuracies and register complaints.

Setting goals

Theme: Setting financial goals and planning ahead

Level 1

Identify a short-term money goal and discuss how to attain it.

Level 2

Set a financial goal as part of planning a project or activity and identify the steps needed to attain it.

Level 3

Create a plan for short term and long term saving based on individual/whānau/group goals.

Level 4

Investigate how financial planning can help to attain life goals, for example, saving for tertiary study.

Discuss different sources of financial advice.

Level 5

Describe career choices and the financial goal setting required to attain different options.

Compare and contrast different sources of financial advice.

Level 6

Set an individual/whānau/group financial goal and plan its implementation.

Describe and compare different sources of financial advice in relation to wealth creation.

Level 7

Set an individual/whānau/group financial goal and plan its implementation.

Demonstrate understandings about wealth creation.

Level 8

Develop a plan to achieve long-term financial goal/s.

Demonstrate understandings about wealth creation through personal financial planning.

Managing risks

Theme: Identifying and managing risk

Level 1

Recognise the importance of keeping money safe.

Describe ways of keeping money safe.

Level 2

Discuss the importance of keeping money safe.

Describe ways of keeping money safe.

Level 3

Identify types of financial risk for individuals/whānau/groups.

Explain ways ways of keeping money safe.

Level 4

Discuss different types of financial risk for individuals/whānau/groups. 

Level 5

Describe ways of managing risk involved in different investments.

Level 6

Compare and contrast risk management strategies for individual/whānau/group finances, for example, bonds, other financial products.

Describe the role insurance plays in protecting assets, for example, car, home contents.

Level 7

Describe and explain risk and return for individual/whānau/group financial management, for example, tenancy agreements.

Explain the role different types of insurance play in reducing financial risk.

Level 8

Explain risk and return, and diversification for individual/whānau/group financial management.

Investigate the benefits and risks of taking out a student loan.

Theme: Rights and responsibilities

Level 1

Recognise the importance of paying for things, for example, goods.

Level 2

Discuss buyers’ rights, for example, returning faulty goods.

Level 3

Understand buyers have rights, for example, warranties.

Level 4

Understand that buyers and sellers have rights, for example, being able to apply for redress.

Discuss different sources of financial advice.

Level 5

Understand that buyers and sellers have responsibilities, for example, Fair Trading Act, banking regulations.

Compare and contrast different sources of financial advice.

Recognise crimes such as identity theft and scams, and identify ways of avoiding them. 

Level 6

Describe the rights and responsibilities of buyers and sellers, for example, Consumer Guarantees Act.

Understand legal contracts when purchasing products or services, for example, hire purchase, phone plans, gym membership contracts.

Describe and compare different sources of financial advice in relation to wealth creation.

Identify trustworthy providers of products and services. 

Level 7

Explain the rights and responsibilities of buyers and sellers, and how to seek redress, for example, providing proof, writing a letter.

Interpret legal contracts when purchasing products or services, for example, hire purchase, phone plans, gym membership contracts.

Describe and compare different sources of financial advice in relation to wealth creation.

Level 8

Compare and contrast legal contracts for purchasing products or services, for example, hire purchase, phone plans, mortgages.

Published on: 03 Sep 2020


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