Financial literacy – Educate adults.

21 comments on “Financial literacy – Educate adults. ”

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1. Classical Liberal 1

   19 February 2010 at 8:51 am

   Finance Company Collapses
   At least Power is doing something which doesn’t fit with the left’s thesis that this is a do nothing government. During the Labour government’s term of office finance companies fell like nine pins and the government of the day did nothing. Why was that? Maybe it suited their purpose to destroy independent wealth thus creating more dependents on the state?
   • mickysavage 1.1

     19 February 2010 at 9:19 am

     Maybe it suited their purpose to destroy independent wealth thus creating more dependents on the state?

     What a bizarre thing to day.

     You think the Labour Party is engaged in the planning for the overthrow of the capitalist system. You must be stuck in the 1950s.

     The last Government was actually very good for the business sector. Just have a look at the tax take. The corporate take went up because businesses were doing so well.
     • Herodotus 1.1.1

       19 February 2010 at 4:56 pm

       You mean like the building sector, hey they cannot evan build a house that keeps out the rain, somewhere betw 22k and 89k of houses leak, and will cost inexcess of $11b no wonder business take was up. Also we had a timber selling roof trusses with under designed timber equalting to $250m sales from CHH, fnance coy giving money away to dig a hole in Queenstown, billions lost in finance coy who paid for all these ?/ The people that are to be protected by laws/govt yet these coy made huge profits and taxes. Great long term results for NZ
   • Draco T Bastard 1.2

     19 February 2010 at 10:51 am

     And maybe what NACT+MP are doing is to increase peoples dependence upon the rich? Because removing peoples access to educational resources certainly doesn’t allow them to improve themselves.
2. lprent 2

   19 February 2010 at 8:57 am

   Or because the process of law making is slower than the markets. You sound like a conspiracy nut with your theory

   But I didn’t mention finance companies. I was looking at the education in financial literacy. Do you have anything on that topic?
   • Classical Liberal 2.1

     19 February 2010 at 9:03 am

     Not a conspiracy nut – Just being provocative – the lack of action by the Labour government probably reflects incompetence rather than predetermined action.
     • lprent 2.1.1

       19 February 2010 at 10:47 am

       You notice that the measures taken by Powers were not exactly far reaching. As he pointed out, there is a balance point between differing objectives that has to be reached. But there are no optimal ‘sweet-spots’.

       The most effective strategy is to promote financial literacy amongst investors so they are able to make their own risk assessments, not only of the products – but also about the advisors.

       However Tolley has removed the best system to help make that happen.
3. Classical Liberal 3

   19 February 2010 at 8:59 am

   Yes, as it happens ……

   The wanton destruction of the ACE system is a blot on this government that will never be erased. Tolley et al are bereft of any idea how widespread participation in continuing education cements society together. Whether macrame or mathematics, education is an intrinsic good that cannot and need not be captured in crude monetary measures. These idiots, having got up the ladder, are kicking it away to deny others the chance. This is not just a left/right issue, this is a human rights issue and National have got it wrong.
4. pollywog 4

   19 February 2010 at 9:16 am

   I agree about improving finacial literacy especially for polynesians who know little of the market and stocks. Mainly cos they’re usually too poor to afford investing in such schemes.

   For instance, when the money market/stock exchange stuff comes on the news, thats my cue to do something else for a few minutes because i dont have a vested interest in it so why bother watching it ? It’s not news to me and only applies to the more well to do section of the general populace that have a maeasure of disposable income to invest.

   So how about teaching it on a pay per view freeview channel with an accompanying interactive website and maybe 0900 helpline if you really get stuck ?

   That way the whole family can learn and you don’t have to leave the comfort of your own home.
   • Lanthanide 4.1

     19 February 2010 at 10:08 am

     Judging by the ethnicity of the people DTR, Cash Converters and other loan sharks put on their ads, I’d say they need education in basic principals of debt and interest rates.
     • pollywog 4.1.1

       19 February 2010 at 10:30 am

       No doubt Lanthanide , we’ve always needed it and thats part of the failure on everyone’s part in allowing a polynesian underclass to develop.

       So naturally it would all be offered as part of the subsidised freeview subscriber package paid for by whanau ora 😉
   • lprent 4.2

     19 February 2010 at 10:52 am

     Ah yeah…. Most people doing investments are older than I am, and I’ve been on the bleeding edge of this type of technology since my teens. Many of them don’t have the technology, and even where they do, they don’t know how to drive it.

     The short answer is that approach may work for people at the same age or younger than I am. But it is almost certainly less effective than bums in classrooms interacting with each other.

     I’m a skeptic about the effectiveness of enhanced learning technologies. Lyn is the optimist in that field
     • pollywog 4.2.1

       19 February 2010 at 11:13 am

       So teach the technology first. Subsidise cheap computers and free dial up. Then make em pay for extras like webcams, headphones etc. Apply national standards and performance based incentives tied to increased benefits using a secure log in and ID like your IRD or winz number…

       Get that happening and then we can look at online voting and binding referenda via a tie in to Parliament TV using the proposed broadband upgrade.

       …just riffing of the top here but the whole bums on seats thing is sooooo old school and it never worked for us before. There are however shitloads of jobless young poly’s out there who know how to download music and rip movies of torrent sites and have nothing better to do but talk shit interactively online.
       • lprent 4.2.1.1

         19 February 2010 at 11:58 am

         It isn’t the hardware that is the real issue – it is the hardwired logic in peoples heads.

         I’ve taught MANY people how to use computers and software. There is a distinct generational gap that is currently in the 45-50 age group between those that grew up with computers and understand the internal logic intuitively, and those who didn’t (and pretty much learn everything by rote). The teaching methods are quite different

         I think that you’ll have to wait about 30-40 years before what you’re after is really feasible.
         • pollywog 4.2.1.1.1

           20 February 2010 at 2:35 pm

           Re online voting tied to TV : It’s feasible now, but it’s in every politicians interest to maintain the status quo and conduct stupid MMP referenda hoping for a rewind to the glorious old boy days.

           …sooo back asswards looking as to distract from envisioning a future and working towards it. Thats the trouble with polticians and it doesnt matter whether you lean left or right.

           It’s all about passing the buck and covering your arse…
5. tc 5

   19 February 2010 at 9:41 am

   Nice post, as for the finance company thread……the law never keeps up (internet a classic example) and once again if we had a MSM that did it’s job the likes of bryan gaynor would have allies in print, all he copped was criticism and Hotchin and co were given soapboxes to counter his concerns.

   This same MSM sits on it’s hands while Tolley creates years worth of damage, has already driven senior academics offshore and imbalances the system yet further……before we factor in this ludicrous ticket based system ACT are pushing where kids can go to more than one school and create more traffic congestion.

   As for any real meaningful reform of Finance……smoke n mirrors.
6. Cnr Joe 6

   19 February 2010 at 10:16 am

   You write – ‘As far as I’m concerned cutting them to push money into private education is ridiculous, as well causing a economic problem for New Zealand further down the line.’
   I take it much further and say it is a tory non-theistic form of evil. There.
   I have personally gained from the former system and loath the loss.
   Getting increasingly irate with these mutts, the humour is just falling away…
7. Bill 7

   19 February 2010 at 11:16 am

   How does investing in stocks and shares square with the reality of finite growth… climate breakdown, environmental degradation and resource depletion…?

   And how does it square with redressing the balance of the share of the proceeds from production received by workers…increasing levels of poverty, a stagnant and slipping middle class and burgeoning underclass?

   Just asking.

   And I’m taking it as read that any financial literacy will roundly ignore all the real world consequences of investing that exist beyond the abstract calculations of risk and return and as such will be a basic and degraded literacy… a bit like being taught to read the words on a page but never being introduced to the concept of reading comprehension… one scenario being merely pointless and the other being pregnant with all sorts of dangers.
8. PK 8

   19 February 2010 at 4:37 pm

   “But Anne Tolley just destroyed the long running cheap effective and more efficient than the alternatives Adult Community Education program in a burst of short-term stupidity, pushed through under urgency with no public submissions.”

   I agree about adult education generally, but what particular course would people be taking to invest their money better? There are loads of books on investing in NZ, either in bookshops or the library. There is also the internet of course.
   • Herodotus 8.1

     19 February 2010 at 5:01 pm

     There is one thing that is hard to educate GREED. Why else would seemly literate finance people invest in 2nd/3rd tier finance coys other than for a 1% of extra return for what risk, or the Blue Chip scenario for a few $0,000 you will earn $100,000, and then we want this money to be guaranteed or govt protected???
     Easy education risk vs reward, and if it is to good to be true …. run as fast as you can!!

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1. A rare opportunity « The Standard: posted on 19 February 2010 at 6:26 pm

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