Factors associated with financial literacy among high school students in New Zealand

Understanding financial literacy among young people is essential for developing effective financial education programmes. We present results from a sample of New Zealand high school students. Holding all else constant, we find that financial literacy is lowest among financially poorer students, those with less English ability, and those with less mathematical ability. However, relative poverty and lower English ability were not related to financial literacy at the highest cognitive level, i.e. the ability to apply financial knowledge. Thus, financial literacy education beginning at the high school level may be the key to improving financial decision-making in the population.