Money and me: Kirk Hope

Be clear of the risks involved if investing money, says Kirk Hope.

What does money mean to you?

Careful investment means you and your family can have a wider range of choices in the way that you live your life. That involves understanding the risks you are willing to take with money and making sure that the rewards or returns are real.

What did you learn about money from your parents?

My mother raised my brother and sister and me mostly on her own. As kids we got everything we needed, but mum went without a lot to provide for us. So early on I learned about budgeting and the value of money.

What was your first paid job?

When I was 10 years old I mowed lawns for $5 to $10 per job. Some of those lawns were pretty big, too.

What is your biggest money mistake?

That red 1978 Valiant Regal I once bought wasn't my best financial move. Most cars are a depreciating asset. On top of that, this one was a dog.

What are your top three money tips?

1. Live within your means. We all have different personal circumstances and some people cannot help spending beyond their income. But if you can, don't spend more than you earn.

2. Getting financial advice could be the best investment you make. For some of us, working out where you want to go and how to get there can be a life-changing experience.

3. Always remember that financial reward brings the risk of loss. If you're thinking of investing your money in something you need to be clear on the risks involved. That means asking the right questions.

Kirk Hope, chief executive of the NZ Bankers Association.