Kōkiri Learn

Background reading · Social Sciences

Dollars, budgets and pooling together

Money only works because people trust it. Budgets help us choose what matters most, and pooling lets groups do what nobody could do alone.

Before 10 July 1967, New Zealanders paid with pounds, shillings and pence. Then the country switched to decimal currency: dollars and cents, where 100 cents make a dollar. It made sums much easier.

What is money, really?

A $5 note is just printed plastic. It is worth something because everyone agrees to accept it. Different countries use different currencies, and the value of the NZ dollar compared with others changes every day.

  • Currency: the kind of money a country uses, such as the NZ dollar, the Australian dollar or the Tongan paʻanga.
  • Exchange rate: how much of one currency you get for another. If the NZ dollar goes up, things from overseas get cheaper for us.
  • Business: a group that makes or sells goods or services, usually to make a profit.

    • Budgets and trade-offs

    A budget is a plan for your money. Start with what comes in, then list what you need, then decide what is left for wants and savings. Every choice has a trade-off: if you spend on one thing, you cannot spend that money on something else. Councils, schools and whānau all make trade-offs.

    Pooling resources

    Sometimes a group can do more by putting its resources together. Papakāinga are a strong example. On Māori land owned by many whānau members, often around a marae, whānau work with trusts and government schemes to build homes together, sharing land, gardens and support.

    Clubs, co-ops, churches and community gardens pool resources too. Pooling works best with clear rules, trust and a fair say for everyone who contributes.

    Sources and further reading

    Written for Kōkiri Learn students in our own words. Check facts against the sources.

    Used in: Our Money, Our Community