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South China Morning Post

Study Buddy (Challenger): Teach Hongkongers how to spend, save and invest

Content provided by British Council Read the following text, and answer questions 1–9 below: [1] In March, the Investor and Financial Education Council launched 'Hong Kong Money Month 2025' to strengthen financial resilience and combat financial fraud. Despite Hong Kong's status as a global financial hub, a significant portion of its population lacks essential financial literacy. Personal finance is largely absent from our school curriculum. We teach students algebra and essay writing but rarely show them how to read a bank statement or plan a monthly budget. While some non-governmental organisations offer workshops, they are not embedded in our education system. [2] We often call Hong Kong a global financial centre – and it is. However, the relevant knowledge does not just trickle down because skyscrapers go up. Navigating credit card bills, rent hikes or retirement savings choices can be deeply confusing for many working-class families. Being surrounded by finance does not mean you have been taught how to handle your money. [3] The cost of this knowledge gap is high – not just for individuals but for society as a whole. Hongkongers are hardworking, economically active people, yet many live with constant financial stress. High living costs, inadequate retirement planning, speculative investments and a culture of saving without strategic allocation are symptoms of a deeper issue. [4] A 2021 survey by the Investor and Financial Education Council showed that while Hong Kong adults generally understand the importance of budgeting and saving, many still struggle with more complex concepts like inflation, investment risk or long-term financial planning. This disconnect is especially dangerous in a city where the wealth gap continues to widen, and financial missteps can have long-term consequences. [5] We cannot keep assuming financial education will somehow 'trickle down' or can be left to parents, many of whom have never received this kind of education themselves. And the need for such education has never been more urgent. Hong Kong's economy is changing. The property ladder is steeper than ever. Young people are growing up with unprecedented access to cryptocurrency platforms, margin trading apps and speculative investment opportunities. Without strong financial foundations, many will make big decisions with little understanding of the risks involved. [6] What we need is a civic-level shift in our approach to financial education. That means integrating practical money skills into secondary school curriculums and teaching students the basics of retirement planning, taxation, credit, budgeting and how to evaluate an insurance scheme. Not through boring lectures but with real-life simulations – what it costs to rent a flat, buy groceries or handle a sudden medical bill. [7] Financial awareness is a survival skill that will foster a more stable society. Fewer people will fall into debt, and more will retire with enough to work and thrive in a financial hub. We are already seeing the cracks – rising credit card debt among young people, an ageing population without adequate retirement plans and a middle class stretched thin. Financial literacy may not solve all our problems, but without it, too many Hongkongers will continue to navigate one of the world's most expensive cities in the dark. Source: South China Morning Post, May 22 Questions 1. According to paragraph 1, … is seen as being more important than practical financial literacy in schools. A. academic knowledge B. fraud prevention campaigns C. strengthening financial resilience D. skills-based education 2. What is the paradox mentioned in paragraph 1? 3. What does the 'knowledge gap' in paragraph 3 refer to? 4. According to paragraph 4, what basic financial concepts are Hong Kong adults aware of? 5. In paragraph 5, what is the danger of young people's 'unprecedented access' to certain financial platforms and opportunities? 6. What assumption about financial education does paragraph 5 argue against continuing? A. that it will be taught in schools B. that it will be learned through practical experience C. that parents will naturally impart it D. all of the above 7. What does the phrase 'civic-level shift' mentioned in paragraph 6 suggest needs to change about financial education? 8. Find a phrase in paragraph 7 that means to be 'uninformed about something'. 9. What is the writer's tone regarding financial education in Hong Kong? A. patronising B. concise C. reserved D. critical Without strong financial foundations, many young people will make big decisions with little understanding of the risks involved. Photo: Shutterstock Answers 1. A 2. Despite Hong Kong's status as a global financial hub, a significant portion of its population lacks essential financial literacy. 3. the difference between Hong Kong's advanced financial infrastructure and the general public's understanding of personal finance (accept all similar answers) 4. budgeting and saving 5. Without strong financial foundations, many young people will make big decisions with little understanding of the risks involved. 6. C 7. Financial education is not solely a responsibility of individuals or families. Government bodies, educational institutions and other societal stakeholders should help implement and sustain widespread financial education. (accept all reasonable answers) 8. in the dark 9. D