Financial Health Check; An overview to date
Helping everyday Kiwis foster a healthy attitude towards money.
The NZCU South Financial Health Check (FHC) was designed to help everyday Kiwis foster a healthy attitude towards money. Keeping it simple, the Health Check is a brief survey that allows the user to assess their current financial well-being while allowing self-reflection and consideration toward future financial goals.
As the tagline suggests “Our financial tools and services, (including the financial health check) are all about helping you achieve the life you want – faster and more easily. Our mission is to back Kiwis who back themselves.”
The Financial Health Check, has been active for several months. We have compiled the entries to date with a brief analysis of a few key questions below.
Saving vs spending habits
Our habits are constantly changing. The Financial Health Check allows us to pause. To take a moment. To reflect upon our saving and spending habits. And hopefully, as intended by the FHC to promote change and ways of thinking around our money management habits. This is timely to do so now, with December being the month we hammer our credit cards hardest. The results of the FHC suggest our spending habits tend to ‘live & die in the moment’. 37% of respondents sit in the ‘Practical – I want to experience and enjoy things now, but I also have an eye on the future’ with 28% admitting to living ‘payday to payday.’ Whilst not a healthy admission this is a fair summation of where the majority fit in modern society.
Concerning our savings, 41% admit to ‘need improvement’ in the area, the “I know I ought to save more, I’m not bad, but I certainly could do better” category of thinking. Only 20% rate their savings habits as good or excellent suggesting there is always room for improvement for many kiwis.
More on savings…
A simple question, with some worrying results. While the survey does not probe the question further into a state of financial stability and well-being, the results suggest many New Zealanders are ‘getting by’ but they would be vulnerable and under-prepared if they were to be placed under financial pressure. This is reflective of the results of this investigation claiming 25% of kiwis have no cash savings.
The importance of savings is a fundamental habit we encourage and tend to cover frequently. For more check out:
- 8 Reasons why an emergency fund should be on your financial radar
- Savings account vs term deposit, what is the best fit for you?
- Time to re-think the way you manage your money?
Home ownership status
The classic kiwi dream. As staple as any goal for many New Zealanders, home ownership remains a key driver and goal we aspire toward. As depicted below we see 27% are current owners with 41% of Financial Health Check entrants holding desires to become a home owner.
Long term financial goal
Wrapping up our summary with long term planning and objectives. Similar to our findings in regard to Home Ownership status and savings habits, the results show 38% have the ambition to become a home owner, with 31% stating a desire to increase savings. Compare these figures to the 20% who rate their savings habits as ‘good’ to ‘excellent’ suggests the intent to save is there, however for many New Zealanders, the steps taken to execute our intentions are lacking reality.
These results are to be expected. As stated previously, the intention of the Financial Health Check is to provide a forum for self-reflection, to appraise our current financial well-being and seek improvement through change in action, behaviour and attitude. To achieve the life we want – faster and more easily.