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🌍 BIGGER FINANCIAL WORLD · LESSON 9

What Are Financial Scams?

A scam is when someone tricks you to get your money or information.

Examples kids can recognise

How scams often work

"You've won a prize! Just pay a small fee first."

Someone pretends to be a person you know and asks for money.

An offer that sounds far too good to be true.

Someone asks for your password or security code.

Someone pressures you to decide right now.

Stop when you see these

The big warning signs

🚩 Promises something that sounds too good to be true
🚩 Says money is needed urgently
🚩 Asks for passwords or security codes
🚩 Says to keep it secret from parents
🚩 Wants payment before giving a promised prize
🚩 Uses pressure or fear to rush a decision
The important rule

STOP. CHECK. ASK.

  1. Stop.
  2. Don't send money or information.
  3. Talk to a trusted adult.
  4. Check whether the person or message is genuine.
It's not just email

Scams can happen anywhere

Scams can happen by email, by text, through social media, in games, on websites, and through phone calls.

Keep these to yourself

Passwords and security

Children should never share passwords, PINs, security codes, or banking details — unless a trusted parent or guardian is helping them directly.

A common trick

Investment and crypto scams

Scammers may promise guaranteed investment returns, huge profits, secret opportunities, or "get rich quick" schemes around cryptocurrency and trading.

There is no investment that can honestly guarantee you'll make huge profits with no risk.

Try it yourself

Which messages should make you stop?

1. "Congratulations! You won $1,000. Send us $20 to claim your prize."
2. "Your friend needs $50 urgently. Don't tell anyone."
3. "Here's information about a product you're interested in. Talk to your parent before buying."
Which ones should make you stop and check?

Messages 1 and 2 both show big warning signs — paying to receive a prize, and urgency plus secrecy. Message 3 involves a normal decision made with a parent, so it isn't a warning sign on its own.

For parents

Encourage children to tell an adult if they receive a suspicious message. Make it clear: getting caught by a scam doesn't mean you're stupid — scammers are deliberately trying to trick people. This matters for building confidence to report mistakes rather than hiding them.

In New Zealand

Scams can be reported

Scams can be reported, and adults can seek help from trusted organisations in New Zealand if something feels wrong.

🎉

The Bigger Financial World complete!

  • Tax helps fund public services.
  • Inflation means prices generally rise over time.
  • KiwiSaver helps people save and invest for the future.
  • Insurance helps protect against certain financial risks.
  • Property can be owned, rented or used as an investment.
  • Cryptocurrency is a digital asset with significant risks.
  • Foreign exchange involves exchanging different currencies.
  • Trading involves buying and selling with the aim of benefiting from price movements.
  • Scams are attempts to trick people out of money or information.

Understanding money is one of the best ways to become confident with money.

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