Teaching financial literacy at school would save debt-plagued Kiwis a lot of trouble later in life, a Hastings financial adviser says.
The comments follow an OECD report that's found Kiwi teenagers have above average financial literacy, but students from poorer backgrounds are likely to be less money savvy than their richer peers.
The OECD PISA study measures the capabilities of 15-year-olds in maths, reading and science every three years across 65 countries.
In 2012 New Zealand was one of 18 countries to take part in a financial literacy assessment, which targeted managing money, setting goals and managing risk.
On average, the 957 Kiwi students who participated scored 520 points - above the average score of 500.
Even so, Hastings financial adviser Nick Stewart said financial literacy should be part of the curriculum. "When you look at it, it's such a fundamental. We teach people how to be effective and how to use their skills to be productive but what they do with their earnings - we've left it to them."
Many adults didn't even understand the basics about bank fees, credit cards, loans and savings.
"A lot of people actually don't understand the fundamentals of something as simple as KiwiSaver, in which 80 per cent of the current workforce are currently enrolled."
Interest rates on credit cards also tripped many people up.
Starting the education early would help people "keep their financial house tidy", he said.
The report found the relationship between New Zealand students' socio-economic background and financial literacy performance was the strongest among participating countries.
Kiwi teens in the bottom quarter of an index measuring economic, social and cultural status scored 459 points compared to 585 points for those in the top quarter.
Maori students scored on average 466 points and Pasifika students 424.
Students with an immigrant background also had lower scores as did those who spoke a language other than English at home.
Massey University's Fin-Ed Centre director Pushpa Wood said we needed to rethink our approach to teaching financial literacy "if we are to break the poverty cycle as the majority of students with only basic skills come from low socio-economic backgrounds".
Retirement Commissioner Diane Maxwell said: "Financial literacy is an essential life skill and embedding it in the school curriculum makes absolute sense. We want young people to leave school equipped to make good decisions about money from an early age."
Secondary Principals' Association president Tom Parsons said there wasn't room to add financial literacy as a subject, but practical examples in math class could improve understanding.
"Financial literacy is numeracy. If we teach it early enough that's the key that unlocks financial literacy.
"It covers so many things - student loans, DPB, budgeting, insurance, mortgages."