- Four Financial Personality Types
- Geographical Differences Revealed
- NZers Changing Credit Card Habits
NZers' Attitudes to Money & Finance
A recent Bank of NZ (BNZ) survey, conducted by UMR research, looked at the underlying attitudes to money and finance of NZers. In particular, the survey looked at how NZers feel about their money, how they make big financial decisions, and from whom they take financial advice.
Overall, most NZers see themselves as financially conservative. The vast majority of us say we don't like high risk investments, we make our own decisions on major investments choosing not to take professional advice, we plan ahead carefully, and we prefer not to have debt.
However, when it comes to the "nuts & bolts" of dealing with our finances, the survey results perhaps tell a somewhat different story. According to the survey results, nearly 55 percent of NZers say they would prefer to watch television or do some exercise rather than sort out their finances. More than 10 percent of people say they prefer visiting the dentist to concentrating on their finances!
Other findings in this part of the survey include:
- half of us barely look at our bank statements, preferring to put them away in case we need them later;
- a further eight percent of us say we glance at bank statements and then throw them out;
- two percent of people throw the statement out without opening them; and
- one percent of people say they are too scared to look at their statements.
Overall, according to the survey, it seems that at least 11 percent of people have little or no idea how much they have in the bank or how they are spending their money. These people don't know the first thing about their finances, the bank says. The remaining 38 percent of people say they review their statements thoroughly, taking note of spending and adjusting their budgets accordingly.
Four Financial Personality Types
BNZ says the survey shows that the population can be divided into four basic financial personality types. Rarely does a person fit neatly into one type; most people have their psychological base in one type and they show characteristics of at least one other type. The four basic types are:
- "Fun lovers", who make up a little less than a quarter of the population. Fun lovers see themselves as fun-loving and carefree. They are less likely to research options before making a major purchase. They live for today, they love a good party, and they see money as providing freedom and enjoyment. On average, fun lovers are more likely to be young people and they are more likely to work in one of the professions.
- "Heartlanders", who make up 43 percent of the population. These people are careful about their investments and they prefer not to be in debt. Relatively speaking, they are more willing to seek financial advice. Heartlanders are focused on their families and providing for those families.
- "Strategists", who make up a little less than a quarter of the population. Strategists thoroughly research options before making a major purchase, they plan ahead carefully, and rarely do they spend more than they can afford. They are often ambitious and forward-thinking people.
- "Go-getters", who make up about 13 percent of the population. On average, go-getters are more likely to see making money as an exciting means of providing independence and freedom, and they are more likely to respect wealthy people. Go-getters see themselves as people who have great business ideas and get them off the ground. They love new things, especially the latest in technology. Of all the financial personality types, go-getters are more likely to live in Auckland and they are more likely to be men.
Other major findings in the survey include:
- NZers say they research major purchases thoroughly: 79 percent of NZers say they thoroughly research options to ensure the best deal before they make a major purchase. Fun-lovers are the least likely to undertake such research; 45 percent of them said they researched major purchases relative to 94 percent of strategists who say they research major purchases.
- The majority of NZers say they don't take advice on money matters: 71 percent of them said they preferred to make their own decisions about savings and investments. Heartlanders are the people most likely to take advice; 34 percent of them say they take advice on money matters; on the other hand, go-getters are less likely to take advice: 10 percent of them say they take advice.
- When NZers do take financial advice, professional financial advisors are the most likely source of advice (36 percent of respondents said they were most likely to take advice from a financial advisor relative to other potential sources), followed by family members (26 percent), bank managers (25 percent), and friends (seven percent). One percent of people said they would take advice from an astrologer.
- NZers say they prefer not to be in debt: 60 percent of people say they would prefer not to be in debt at all. Nearly 70 percent of fun lovers say they feel some debt can help them achieve their goals, while 23 percent of heartlanders say they feel some debt can help them. Nearly 75 percent of NZers say they never spend more than they can afford.
Borrowing money from your friends is apparently frowned upon in NZ: 79 percent of people say they have never borrowed from friends, and of those who have, 90 percent always paid it back.
Geographical Differences Revealed
The survey also suggests that where you live has a lot to do with attitudes towards wealth, debt, money and spending. The results highlighted some key differences between Aucklanders, Wellingtonians and Cantabrians.
Aucklanders, for example, say they plan their financial affairs, and tend to make their own decisions on money matters. And the region's residents seem to be impressed by wealth and the success of others. Yet, Aucklanders say they are debt-averse, and show the most discipline in the management of their credit cards, with 59 percent of Aucklanders always paying their credit card off in full each month.
By contrast, Wellingtonians are apparently the least likely to take advice on money matters. They say they are unimpressed by wealth and accordingly pay the least attention to business news. Wellingtonians are more likely to buy on credit and worry about it later, with 37 percent of those surveyed saying they sometimes do not pay their credit card off in full each month.
And Cantabrians are seemingly conservative when it comes to money matters, with nearly three-quarters of those surveyed saying that they plan carefully. They are most likely to take advice on money matters, which may explain their willingness to take on debt - as long as it helps them reach their goals. They are apparently far more interested in local news than global bulletins.
NZers Changing Credit Card Habits
Other recent survey information (this time from MasterCard) shows that NZers are changing they way they use their credit cards, controlling them and paying off debt more regularly. The nationwide survey of 500 NZers shows that credit card usage for day-to-day purchases and payment of regular bills has increased while there has been a drop in the proportion of credit card holders using their cards for emergency and large one-off purchases. Reserve Bank figures show that NZers' credit card debt is 2.2 percent of total NZ debt - compared with 2.3 percent a year ago.
Contact for Enquiries
The Ministry of Agriculture and Forestry
Pastoral House
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PO Box 2526, Wellington
Tel: 0800 00 83 33
Fax: +64 4 894 0720
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