Turn Financial Knowledge into Action

Read More

JumpTurn Financial Knowledge into Action

While New Zealanders in general have an excellent grasp of basic financial concepts, a recent survey has found that they are not so good at putting into practice what they know. The survey, undertaken by the Commission for Financial Literacy and Retirement Income with the support of ANZ, ranked New Zealanders well ahead of other OECD countries on financial knowledge. However it also shows we have a long way to go to get people engaging in financial behaviour that will help them achieve their financial goals. For example, while 85% of those surveyed know what a budget is, only 61% have one.

Banks, family and friends and the Sorted website are popular sources of financial information but a possible reason for the lack of action is that many people struggle with how to translate general information into something that suits their own specific needs and circumstances. Putting together a budget, let alone a financial plan, can be a complex process involving setting goals, analysing spending, calculating income and the amount of saving required to achieve specific goals.

Building your financial future is no different than building a house in that you are much more likely to succeed if you have a plan drawn up, with the assistance of an expert, to show how everything is supposed to fit together. Every plan is unique as it depends on individual goals and circumstances. There are a number of reasons why people don’t have financial plans:

  • Lack of familiarity with using a financial planner
  • Lack of understanding of the value of a financial plan in comparison with the cost.
  • A  shortage of qualified financial planners who are authorized to give advice

These are all obstacles that need to be dealt with so that financial knowledge can be turned into action.

Related Articles

Liz Koh

Budget Winners and Losers

The latest Government budget had something for everyone but while most households will be a few dollars a week better off, there are some clear winners and losers. In the winners’ corner are businesses, those on high incomes, and savers. The biggest losers are property investors who have built large portfolios financed partly by tax rebates.

Read More »

Top Up or Miss Out

The end of June is an important date for KiwiSaver members. The financial year for KiwiSaver runs from 1 July 2009 to 30 June 2010 and if you have contributed at least $1,040 to KiwiSaver during that time, you will be eligible for the full amount of Government tax credit to be paid into your KiwiSaver account in July.

Read More »

Responsible Investing

There is a worldwide trend for investors to want to make a positive contribution to the world by investing in companies that are socially and environmentally responsible. If you are passionate about the effects of climate change, the scarcity of food and water, and social or environmental policies in general, then you will no doubt wish to ensure that the companies in which you invest are going about their business in a manner that is consistent with your views.

Read More »

Helping You Live your retirement To the Max

Keep in touch

Fill in your details and we’ll get back to you in no time.