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ASB Research: Kiwi Gen Zs Are Under Pressure, But 43% Are Taking Steps To Improve Their Financial Position
New ASB research shows that despite tough economic circumstances, 43% of Kiwi aged 18-24 are building better money habits and taking action to improve their financial wellbeing.
Young Kiwi are facing a financial double whammy, as high youth unemployment adds to cost of living pressures. More than 80% of the net jobs lost in 2024 were for workers aged 30 and under, and ASB economists expect unemployment for jobseekers aged 15-19 to remain around 20% until the end of 2025, compared with around 5% overall.
To understand how these challenges are impacting young people, ASB has analysed the spending and saving patterns of more than 650,000 customers, including 57,000 aged 18-24.
ASB found customers aged 18-24 were 26% more likely to experience payment problems than the national average. A lack of savings is causing strain: 56% of young people don’t have at least $1000 of savings, compared with 44% of Kiwi overall.
60% of customers aged 18-24 rarely have enough money to cover their monthly bills, and 44% live paycheck to paycheck.
ASB General Manager Business Transformation and Customer Engagement Rosalyn Clarke leads the bank’s financial wellbeing programme, and says while the past few years have been hard for many Kiwi, rangatahi face distinct challenges.
“This generation started working and managing their money through lockdowns, rising inflation and a recession. It’s tough – but we know young people want to get ahead, and with a lifetime in front of them, small changes now can make a big financial difference.
“Our data shows one-fifth of our 18-24 customers are regular savers, which is encouraging, as good savings habits can significantly lift financial wellbeing. 80% of this age group contributed to their KiwiSaver in the past year, and they’re 18% more likely to invest enough to earn the $521 annual Government KiwiSaver contribution.
“43% of our 18-24 customers took steps to build better spending, savings, or credit habits in the past year. By making changes such as reducing their overdraft, setting up regular savings, or getting KiwiSaver advice, we can see their financial wellbeing improves compared to those in their age group who don’t.”
ASB is currently sharing money tips with young people through its Level Up campaign, which supports 18-24s to build money confidence. Now in its third year, Level Up spotlights money tools such as ASB’s Goal Planner, which tracks progress toward a saving target, and Save the Change, which automatically rounds up spending and puts the difference into savings.
ASB’s Community Bankers and its dedicated school team also support rangatahi across the country gain money management skills through free face-to-face workshops for school leavers, community groups, and young jobseekers.
Research by ASB’s partner, youth mental health charity Youthline, found money is one of the top stresses for Kiwi aged 21-24[1] and ASB wants to help to tackle this, says Rosalyn.
“If young people are worried about money, or need support to get on top their finances, ASB offers free help – and you don’t need to be a customer. Check out our online tools, or book a financial wellbeing review and we’ll help you take steps toward your goals.”
Notes:
- Financial wellbeing information is based on anonymised analysis of more than 650,000 New Zealand adults that have their main bank relationship with ASB and includes high volumes of customers across all New Zealand regions and demographics.
- The term ‘savings’ is used in this research and release to refer to credit balances in customer transactions, savings, credit card(s), term deposit and term fund accounts.
- KiwiSaver information refers to anonymised analysis of ASB KiwiSaver Scheme Funds.
- All financial wellbeing data reflects the 12 months to 31 January 2025.\
[1] Youthline: State of the Generation, Kantar Public, September 2023
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