Bank Negara: Financial education to be incorporated into school curriculum from 2014

by loh foon fong

KUALA LUMPUR: Financial education will be incorporated into school curriculum in stages, beginning next year.

Bank Negara Assistant Governor Abu Hassan Alshari Yahaya said Monday the central bank, in collaboration with the Education Ministry, would introduce it to Year 3 students next year and secondary school students from 2017.

In fact, he said that part of the financial education elements had been introduced this year in Bahasa Malaysia and Mathematics subjects, ahead of the targeted date.

"Financial education needs to be inculcated continuously from young to adulthood as this will instil a high level of discipline and increase their financial management skills," he said during the Financial Literacy Month 2013 on Monday.

Abu Hassan said the curriculum on financial education in schools would include topics on money management, planning, savings and investments, credit and debt management and insurance for students at various levels of education.

The Federation of Malaysian Consumers Associations' (Fomca) Consumer Research and Resource Centre found in its survey that many young Malaysians were living beyond their means, were carrying too high personal debts and had too little savings.

They were also not budgeting or carrying out financial planning and had low levels of financial knowledge.

Fomca president Datuk Dr N. Marimuthu said that household debt at the macro level and financial problems at the individual and household levels seems to be worsening.

According to the Finance Ministry, Malaysian household debt stands at 83% of the nation’s Gross Domestic Product, possibly one of the highest in the world, he said.

He said that Insolvency Department showed that 103,827 bankruptcy cases between 2005 and Nov 2011, with the majority, 32.3% were between ages 35 to 44.

According to Credit Counselling and Debt Management Agency (AKPK), about 60% of individuals seeking financial help were below age 40, while 15% were those in their 20s, he said.

“One of the most significant cause of financial problems was the mismanagement of the use of credit cards.

According to the Employees’ Provident Fund, Malaysians were not adequately preparing for their retirement.

In a 2003 survey, 50% finished their retirement savings within five years while 70% within 10 years.

 

The Star Online

Monday October 7, 2013.