79% Of Kiwis Are More Money-cautious Than They Were Pre-COVID

News highlights:

• Nearly 3 million people have changed their personal finance habits
• Ditching restaurants and budgeting among the top new behaviours
• Quick tips for better money management

The pandemic has changed Kiwis’ relationship with money, according to new research by Finder, a consumer research and financial comparison site in New Zealand.

A new, nationally representative Finder survey of 1,501 respondents aged 18 and above has revealed that the majority of New Zealanders (79%) – equivalent to almost 3 million people – have changed their personal finance habits as a result of the pandemic.

Around 1 in 2 people (48%) are eating out less than they were pre-COVID, while 45% say they are comparing financial products to find the best deal more than before.

Kiwis have also become more diligent at budgeting (32%) or paying off debt (25%).

Kevin McHugh, Finder’s publisher in New Zealand, said that the pandemic caused people to think differently about their financial situation.

“It’s been a year since COVID-19 was declared a pandemic. Many of us have had to make adjustments during this time, including our spending.

“The pandemic was a stark reminder about how important it is to have rainy day savings – you never when the rug may be pulled out from under you.

“It’s encouraging to see that Kiwis have become more budget-conscious and are looking to find better deals to save money,” McHugh said.

The research found that Millennials are the most likely to compare products more than they were pre-COVID (51%), while Gen Z are the most likely to be budgeting more than before (44%).

Baby Boomers are the least likely to have made any changes to their financial habits as a result of the pandemic, with a third (34%) saying they haven’t changed their behaviour at all, compared to just 11% of Gen Z.

Despite consumers being money-shy in the wake of the crisis, KPMG has predicted a wave of eCommerce growth as consumer confidence begins to recover, similar to that which followed the Global Financial Crisis.

McHugh said that although an economic upswing is forecast, he expects most consumers to remain cautious with their money in the meantime.

“New Zealand has done incredibly well compared to most other countries. But we’re not out of the woods just yet.

“Although our employment levels are rising and the economy is improving, it’s still important to be cautious with your money.

“Use this time to prioritise your savings as much as possible, and focus on paying down high-interest debt like a credit card or personal loan.

“Take a look at your current financial products to see if there’s a better deal out there. You can compare credit cards, car insurance and more at Finder,” McHugh said.

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