New research shows that New Zealanders are leaders when it comes to understanding key financial concepts but sometimes they find it hard to put their knowledge into practice.
Launched at the Financial Literacy Summit in Auckland, the 2013 Financial Knowledge and Behaviour Survey found that there is a considerable gap between knowledge and action: even though most (88%) understand the need to save for retirement, only one-in-three New Zealanders (31%) have worked out how much they have to save.
However take-up of KiwiSaver, a voluntary, work-based, government savings initiative that helps people prepare for retirement, has increased markedly since 2009, from 29% to 52%. "KiwiSaver and the public debate about retirement savings have made a big difference to financial literacy," said John Body, Managing Director ANZ Wealth. "People are far more aware of these issues than a few years ago."
ANZ is working to improve financial education through its MoneyMinded program, which teaches basic budgeting, savings and money management skills. In South Auckland, ANZ has partnered with the Solomon Group Education and Training Academy which provides training to people with low levels of financial literacy.
"For many of our students, MoneyMinded has improved their lives," says Judy Solomon, Director of Curriculum for Solomon Group. "The knowledge they’ve gained helps them understand, often for the first time, about ‘money in’ each week and empowers them to take greater control of their lives."
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