Booster Savvy helps young Kiwis save - and spend - better.

It’s no secret that, when it comes to the cost of living crisis, younger generations shoulder the burden more than most.

Recent studies show that around half of Gen Zs and millennials live paycheck to paycheck, with financial security continually front of mind.

“When it comes to money, Gen Z is a unique generation. They’re hyper-aware of their finances because they have to be,” says Diana Papadopoulos, Chief Customer Officer at financial services company Booster, which has helped Kiwis manage their money for over 25 years.

“In previous generations you’d get your first job, finish school, do your OE, then maybe start saving for a house. At the time it was all very attainable, but nowadays house prices feel increasingly out of reach for young people.”

But it’s not all doom and gloom. Having grown up around technology and the internet, the digital natives of Gen Z are uniquely placed to manage their finances in new and innovative ways.

That’s where Booster Savvy, steps in: “We kept hearing from customers that the hardest thing is keeping on top of day-to-day spending. Booster Savvy is a smart investment account that leverages technology to save as you spend, and earn competitive returns while you do it,” says Papadopoulos.

Launched in November, Booster Savvy combines the ease of an everyday savings and spending account with meaningful returns. While an investment account, Booster Savvy has many of the features you’d find in a traditional transactional account – with a Mastercard debit card, withdrawals and an intuitive app to manage your money. Funds transferred in and out of your account are connected to the Booster Savvy Fund, a cash-based managed fund.

Papadopoulos says investing in cash and cash equivalents provides a level of certainty that’s proven important to young Booster customers: “Typical investments fluctuate in value, but Booster Savvy isn’t about that. What we promise is that every dollar you put in will always be worth a dollar – and the returns you get are always at the set return rate.”

With a current set return of 5 per cent per annum*, Booster Savvy calculates interest daily and credits it to your account every month. With no card or monthly account fees**, free transactions across New Zealand and free ATM withdrawals at top New Zealand banks, Booster Savvy customers are never surprised by hidden fees and charges. Plus, with the backing of Mastercard, Booster Savvy is a secure payment option both in New Zealand and internationally.

But the real hero, says Papadopoulos, is the suite of smart features built into the Booster Savvy app: “The magic of Booster Savvy is that it learns what you do and feeds that information back to you, so you’re less likely to get caught out in the future.

“You get visibility on your spending habits, optional alerts and saving tools that allow you to put money aside without having to think about it.”

One such feature is Salary Split, which organises customers’ funds before it arrives in their account. Customers can then sort their cash into customisable ‘stacks’ of their choosing, from rent and other expenses to savings, holiday funds and more. Elsewhere, the Boost feature rounds up everyday purchases the nearest 50c, $1 or $5 and sends it to the ‘stack’ of your choice.

“The resounding feedback from everyone using the Boost feature is that it’s a really satisfying feeling to save money in such an effortless way,” says Papadopoulos. “Often when we buy something, we round it up anyway. All Boost does is put those extra bits of cash towards your longer-term goals, instead of just frittering it away. It helps eliminate the temptation to spend before you save.”

Andrew, a 25-year-old para-planner based in Auckland, is a fan of Booster Savvy’s sweep function, which automatically redirects any leftover money from his paycheck straight into his savings. He then tracks those savings, as well as his monthly returns, using the automated tracking features in the app.

“I’m a big budgeter who used to spend around two hours a month on spreadsheets, but with Savvy I haven’t needed to as I can see where my money goes now,” he says.

“People who aren’t so financially experienced can use Savvy to help them budget and make better financial decisions.”

Founded by industry experts in 1998, Booster is no stranger to helping New Zealanders look after their money – from KiwiSaver and financial advice to ethical investments and now Booster Savvy. Underpinned by a network of trusted financial services partners including Mastercard, Banzpay, Moneythor, Apple Pay and Google Pay, Booster Savvy uses its fintech partnerships and smarts to put customers’ minds at ease.

“For a long time in New Zealand there’s been a lot of talk about what to do with your money. But Booster Savvy isn’t about that – it’s about actively helping people get there,” says Papadopoulos.

“At the end of the day, telling people – especially young people – what to do with money hasn’t always worked so well in New Zealand,” she says.

“Booster Savvy is about listening, learning and helping our customers, putting the power back in people’s hands.”

For more information: https://boostersavvy.co.nz/ The easy way to manage money

*This is after fees and before tax. Booster periodically reviews and sets the return rate.

**some fees apply, including international transaction and FX fees. Merchants may apply surcharges which Savvy aren’t involved in.

Disclosure: The Booster Savvy Scheme (Savvy) is not a bank account and Booster is not a bank. Savvy is a managed fund and Booster Investment Management Limited is the manager and issuer of Savvy. Savvy’s Product Disclosure Statement, and other important information about Savvy (including a comparison highlighting some of the differences between Savvy and a bank account) is available at www.boostersavvy.co.nz.