ADVOCATE COLUMN 2nd WEEK SEPTEMBER 2012

ADVOCATE COLUMN 2nd WEEK SEPTEMBER 2012 The first week of this month marked Money Week. This was an initiative led by the Commission for Financial Literacy and Retirement Income. It was week-long series of financial education events and activities undertaken by many different organisations around the country to raise awareness of how people can better manage their money and where they can get help to do so. The objective being to inform people -whether they were employees or employers- about what areas of their financial life they need to make informed decisions about and who can assist them make positive money choices For Northland, financial literacy -like all forms of literacy- is essential to improving the capability of our work force and to empower people to take control of their finances. Over the last two and a half years many business people have had to increase their financial literacy as it relates to their businesses and how their businesses really operate. In many cases this has resulted in improved business practices and a higher level of management capability. With household credit card debt exceeding $3.5 billion, we need to take the lessons businesses have taken on board regarding living within their means and transfer these skills and knowledge into our homes. It is not a criticism of individual choices nor does it ignore the fact that we have a low waged economy, but rather a suggestion that the better informed we are, the better choices we can make. Unfortunately changing behaviour developed over a lifetime among our adult population will not be an easy task. Increasing the financial literacy and reinforcing good habits in those about to enter the work force or undertake tertiary education however is likely to have a higher chance of bringing about a positive financial result. For many young people tertiary study offers them their first taste of financial independence. They face decisions about student loans, leaving home and getting part time jobs. They need the skills that will lead to good financial decisions and that will set them up for their adult life Young people having a better understanding of financial matters would be of great benefit to Northland communities. It would allow them to make better decisions about debt and lifestyle and ensure that they can maximise their potential for a secure future. These same skills raise the capability of our workforce which in turn should raise productivity and wage levels.