Kiwis – what’s to be afraid of? Start asking

Media Release

October 25th 2012

Kiwis – what’s to be afraid of? Start asking.

New Zealanders have an alarming reluctance to talk about their financial circumstances despite a new Westpac survey showing only 4% believe the average Kiwi understands how to manage their money.

The survey reveals the fear of talking about money is engrained at an early age and has a detrimental impact socially and on the financial well being of Kiwis. The findings from the online survey of 700 New Zealanders include:
•51% did not talk about money or financial planning as a family when growing up
•Only 24% of parents actively spent time teaching their children about money growing up
•43% feel New Zealanders need to get better at talking about money

Kiwis have been raised not to talk about financial issues and that learned behaviour is carried into adult and parenthood with unfortunate repercussions.
•Only 32% feel confident dealing with money matters
•64% experience financial difficulties on a monthly, weekly or daily basis
•69% felt financial security is simply being able to pay the bills
•61% are not confident they have a good financial plan for the future

Westpac NZ Chief Executive, Peter Clare, says New Zealanders are renowned for being straight shooters but that does not carry through to being open about money matters with friends, family and the wider community.

“The majority of New Zealanders believe they would be a lot happier if it was easier to talk about their finances but are not putting that into practise. The dinner party and water cooler conversations cover a broad range of often sensitive topics but its clear money is not often one of them. Opportunities to financially learn and grow are being wasted. That embarrassment is coming at a cost,” he said.

“Whatever the topic, talking about it and asking questions help’s create knowledge and understanding. Finance is no exception to this.”

Just under 60% of those surveyed felt money issues were a major factor in marriage break ups. The survey identified a number of reasons why people were reluctant to talk about finances, with 57% feeling finance is a private thing and 44% held the view that people struggling with money issues would be too embarrassed to ask for help.

ENDS

Fact Box - The way Kiwis are raised to talk about money
•51% did not talk about money or financial planning as a family when growing up
•67% sometimes, most of the time or all the time experienced financial difficulties as a family growing up
•50% do not talk about money and financial planning as a family now
•43% feel New Zealanders need to get better at talking about money
•Only 24% of parents actively spent time teaching their children about money growing up

Fact Box - Why Kiwis don’t talk about money
•57% believe finance is a private matter
•44% believe people struggling with money will be to embarrassed to ask for help
•Only 12% disagree that we would be happier if it was easier to talk about finances

Fact Box - Impact in adult/parenthood
•Only 4% believe the average Kiwi understands how to manage their money
•43% believe Kiwis need to get better at talking about money
•Only 32% of those surveyed feel confident dealing with money matters
•64% experience financial difficulties on a monthly, weekly or daily basis
•69% felt financial security is simply being able to pay the bills
•61% are not confident they have a good financial plan for the future
•58% believe marriages failure because of money matters

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