Fewer people are worried about house prices, inflation and interest rates – but at the same time, fewer people feel prepared for retirement, financially confident, and secure in their jobs.
With so many people worrying about money so often, Kirk Hope says, “there’s no doubt there’s emotional and psychological consequences from that”.
Kiwis’ financial confidence isn’t matched by their financial literacy, which hasn’t improved in the past five years.
“I might say, ‘yeah, I’m highly financially literate’ and then get five out of 10 questions wrong, which shows I’m probably not – because highly financially literate would mean probably 80% plus. If you don’t know that there’s a gap, that’s pretty problematic as well.”
Hope says the financial services industry, which the council represents, needs to do more to ensure Kiwis understand financial concepts.
“Sometimes financial language can be actually pretty alienating to people. So, if we can really cut to the chase and talk to people in their own terms, I think there’s a real opportunity there. Because financial literacy in and of itself as a term is pretty alienating, right? It’s like, what the hell does that mean?”
Hope says it’s also important to address the stigma around seeking help with your finances.
“If you are feeling unhealthy, you go to the doctor. If you don’t really have a handle on your finances, you certainly need to go and talk to a financial adviser or someone who can help you understand what’s going on”.
Listen to the full episode of The Prosperity Project for more about the financial resilience of Kiwis.
The podcast is hosted by Nadine Higgins, an experienced broadcaster and a financial adviser at Enable Me.
You can follow the podcast at iHeartRadio, Apple Podcasts, Spotify, or wherever you get your podcasts. New episodes are released every Monday.
