Young Kiwis are getting more information on personal finance from social media sites such as TikTok than they do from
school.
New independent research from BetterSaver surveyed 16-24-year-olds to better understand their knowledge when it comes to
financial literacy.
A whopping 90% of youth think that school should teach them more about personal finance and money management. Nearly 40%
also want to learn more about money and finances, but don’t know where to start.
Joe Taylor, BetterSaver founder and CEO, says New Zealand schools need to do better.
“We cannot leave our young adults in the dark to figure out what financial advice is good or bad. We trust schools to
set our children up for success, but our research findings show that’s not the case when it comes to financial matters.
“Financial education should be easy, and the foundations should be laid at school. The fact that we’ve got young people
relying on TikTok, Instagram and other social media ahead of the schooling system shows we’ve got some serious leg work
to do.”
The research also uncovers topics young Kiwis want to learn more about at school, with 90% wanting to learn more about
budgeting and planning your money. Other topics they wish were covered includes making investment choices and
understanding risk (52.5%), and how KiwiSaver works (66.2%).
Shockingly, when asked how to define compound interest, more than half young Kiwis couldn’t define it accurately. Three
in five young Kiwis also don’t understand that diversification decreases investment risks, which has a huge impact on
people’s ability to decide what KiwiSaver fund they want to be in.
“We’ve got to set young Kiwis up for financial success. It doesn’t happen by accident. Financial literacy is something
we can teach, and it’s something we can simply step people through the basics.
“Our goal is to educate young adults about KiwiSaver by providing sound financial advice and empower them to make smart
financial decisions beyond KiwiSaver once they understand the possibilities,” Joe concludes.
ENDSAbout BetterSaver
BetterSaver’s advice platform is designed to put Kiwis in the fund that best aligns with their ethics, risk portfolio,
and life stage. It’s free to go through BetterSaver’s Fund Finder advice process, and the digital platform makes it easy
for Kiwis to identify which best fund meets their needs, and then make the switch. Learn more at https://bettersaver.co.nz/.About the research
Pure Profile conducted a representative survey of 204 young New Zealanders between the ages of 16-24. The survey was
conducted from 30 July – 3 August 2021 to better understand how young adults think about personal finance and their
financial literacy.
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SectionsFinancial Habits & AttitudesKiwiSaver Uses & KnowledgeFinancial Literacy QuestionsFinancial Habits & Attitudes
Where do you get your information on money and personal finance from?ValuePercentParents82.80%Other family members, including your partner30.90%Friends27.50%School19.10%Mainstream media including online news, radio, and tv27.50%Social media including YouTube and TikTok26.50%Online resources including Podcasts23.50%Books including e-books11.80%Other (Please specify)2.90%
How frequently do you seek information on money and personal finance?ValuePercentAll the time9.30%On a regular basis / very often27.50%Not very often39.70%Only when I need to20.60%Never2.90%
Why do you seek information on money and personal finance?ValuePercentTo keep myself informed55.10%When I need financial advice to open an account, make a loan or investment etc41.40%To help with budgeting or saving71.70%When I hear others talk about finance and related topics25.30%Other (Please specify)0.50%
Would you like to learn more about money and finances?ValuePercentNo, it’s too complex (or boring) and I’m not interested5.40%No, I feel like I know enough about money for my current life stage19.60%No, someone else looks after my money for me2.50%Yes, but I don’t know where to start39.70%Yes, and I am actively talking to people and seeking advice26.50%I’m not sure6.40%
To what extent do you agree or disagree with the following statements?ValueStrongly agreeAgreeNeither/NorDisagreeStrongly disagreeIf I need help managing my money, I know where to go to get it7.4%55.4%22.1%13.2%2.0%I think New Zealand schools should teach more about personal finance and money management45.6%44.6%8.3%1.5%0I think the average Kiwi has to rely on their family money to buy their first home25.0%38.7%27.9%6.9%1.5%Managing money well is something you can learn30.4%60.8%8.3%0.5%0Self-control is more important than knowledge when it comes to managing money15.2%48.0%29.9%6.9%0I feel confident talking about money10.8%42.2%28.9%16.7%1.5%People should have an emergency saving fund35.3%53.9%8.8%2.0%0I can confidently make a budget to track what I spend18.6%43.1%21.6%14.2%2.5%I don’t think about money much, I just take it as it comes6.9%24.5%28.4%29.9%10.3%Better to live in the moment than worry about tomorrow4.4%19.1%27.9%38.7%9.8%Things always work out in the end when it comes to money5.9%19.6%35.3%34.8%4.4%I feel more confident navigating social media than I do filing my tax return34.8%35.8%20.1%5.9%3.4%
Which of the following actions, if any, have you taken in the last 12 months?ValuePercentChecked your current account balance88.20%Checked your bank statement62.30%Put money into a savings account81.90%Withdrew money from a savings account61.30%Put money into a KiwiSaver account53.40%Spoken to a friend or family member about managing your money53.40%Made a budget to manage your spending44.60%Used an app to help you manage your money17.20%Searched online for information about managing your money22.10%Used an overdraft6.90%Used investment apps like hatch / Sharesies20.10%Purchased shares through brokers3.40%Invested in cryptocurrency.5.40%Used a credit card to pay for essentials16.20%Purchased land/property2.50%Sought advice from a financial adviser2.90%None of the above2.00%
Which of the following topics, if any, do you think New Zealand schools should teach more about?ValuePercentBudgeting and planning your money90.20%Short-term savings41.20%Making investment choices and understanding risk52.50%Using credit such as credit cards and loans and Buy Now Pay Later44.10%Saving for a house deposit63.70%Saving for retirement42.20%Cryptocurrency17.60%How KiwiSaver works66.20%The best KiwiSaver fund for your lifestyle42.20%Other (Please specify)0.50%None of these/Not sure3.40%KiwiSaver Uses & Knowledge
Do you plan to purchase a house in the future?ValuePercentYes, I am currently looking to purchase7.40%Yes, in the next 10 years46.60%Maybe, in 10 years or more26.00%No, I don’t think I’ll be able to purchase a house for myself6.40%I already own a house3.40%Not sure10.30%
How do you think you will pay for a house deposit?ValuePercentWith savings74.20%With KiwiSaver72.40%With help from family41.70%Inheritance12.90%Other4.90%Don’t know8.60%
How do you plan to fund your retirement in the future?ValuePercentKiwiSaver68.60%Government money (superannuation/pension)38.20%Savings51.50%Investments28.90%Sell my house or other significant assets9.80%Other2.50%Don’t know17.20%
Do you have KiwiSaver?ValuePercentYes77.90%No21.60%Don’t know0.50%
Have you ever switched KiwiSaver funds or providers?ValuePercentYes28.30%No71.70%
Why did you change KiwiSaver funds or providers?ValuePercentI changed my main bank26.70%My new provider provides better returns40.00%My new provider charges less in fees35.60%My new provider aligns better with my ethics13.30%Other20.00%
How much money do you think you need to save for your retirement?ValuePercentLess than $50,0004.90%Between $50,000 - $99,9999.80%Between $100,000 - $249,0009.30%$250,000 - $499,00010.80%$500,000 - $749,00012.70%$750,000 - $999,9997.80%$1 million - $2 million15.70%More than $2 million3.90%Don’t know25.00%Financial Literacy Questions
Which of these statements do you think are true or false about KiwiSaver?ValueTrueFalseAll employed Kiwis must contribute to KiwiSaver36.8%63.2%When you first join KiwiSaver, you are put in a default fund with your everyday bank59.3%40.7%You can change your KiwiSaver provider whenever you want91.7%8.3%I think KiwiSaver will be able to support me in retirement63.7%36.3%The Government contributes to your KiwiSaver every year83.3%16.7%Your employer contributes to your KiwiSaver alongside your own contributions94.1%5.9%You can take a break from regular KiwiSaver contributions77.0%23.0%You can make voluntary payments to KiwiSaver90.7%9.3%KiwiSaver balances always go up, never down19.6%80.4%
What is most important to you when considering making an investment or deciding on a KiwiSaver fund provider? Order the
below from most to least important, where 1 is the most important and 3 is the least important:
What is your understanding of how compound interest works?ValuePercentCompound interest is calculated only on the principal amount or the principal amount that remains over time11.80%Compound interest is calculated on the total amount of principal and interest accumulated over time44.60%Don’t know43.60%
Order the below types of KiwiSaver funds in terms of risk level, starting with lowest risk Where 1 is the lowest risk
and 4 is the highest risk:
When money is invested across multiple assets such as stocks, managed funds and bonds, compared to just one type of
asset type, do you think the risk portfolio…ValuePercentIncreases39.20%Decreases40.70%Remains the same20.10%
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