Mastercard Reminds Kiwis to Manage their Finances Wisely

Kiwis reminded to manage their finances wisely during Money Week

Auckland, New Zealand – 17 August 2017 – This Money Week, the vast majority of New Zealanders are thinking about saving, retirement and planning ahead, according to the latest research from Mastercard.
Mastercard’s biannual research on money management found 93% of New Zealanders plan to save more or the same amount of money in the next six months, at an average of 15% of their income. Retirement (40%), buying or renovating their home (36%) and international travel (33%) are the top three reasons for saving.

Most New Zealanders are confident with basic money management and budgeting, with 79% keeping track of their spending on a weekly or monthly basis. However, 29% said they still struggle to set money aside for big purchases.

“New Zealanders have a good foundation for financial literacy, but struggle with bigger purchases and savings. Initiatives like Money Week encourage Kiwis to stop and think about managing their money better to minimise stress and meet savings goals,” says Peter Chisnall, Country Manager for Mastercard New Zealand and Pacific Islands.

The research found New Zealanders had increased their use of mobile applications to manage money, with over a third using them to manage their money.

“Most New Zealanders have a smartphone on them at all times, and there are a number of clever apps making it easier for people to manage finances easily and on the go. They can also help people set goals and put money aside for big purchases or emergencies.”

In the event of income increasing, the first thing New Zealanders would do is pay off debt (35%, first priority) or put it into savings (26%, first priority). In contrast, if income was to drop, spending on an overseas holiday (30%, first priority), dining out (25%, first priority), and regular savings (11%) would be cut back.

“Money can be difficult to manage, and at Mastercard we promote having a healthy understanding of money to enable people to manage their finances with confidence,” says Chisnall.
During Money Week 2017, Mastercard encourages New Zealanders to take advantage of the resources onhttps://sorted.org.nz/moneyweek, to get advice on how to improve their money management and better manage debt.

Below are Mastercard’s recommended tips for reducing and managing debt.

• Actively manage your money:
o Set a monthly budget with incoming and outgoing spend, and monitor it
o Pay back charges on credit cards in a timely fashion to avoid interest charges on the remaining balance
o Always check your credit card statements carefully in order to spot any irregular transactions
o Use your prepaid, debit or credit card to pay for purchases and make payments to help you keep track of all your spending in one location
o Update your personal details if you move address. This will help to prevent your financial information from falling into the wrong hands.

• Formulate a plan: Put the plan for reaching your goal down on paper. Set targets for monthly expenses, such as transport, utilities etc. Then try to spend less than your set targets. Make the difficult decisions about how to squeeze more of what you earn to reduce your overall debt, but always remember to leave some budget for unforeseen expenditure (e.g. replacing a car battery, calling in a plumber) so your plan doesn’t fall down on something unexpected.

• Assess debt levels: Understanding how much debt you’ve accumulated is the first step towards reducing it. Determining your total amount of debt can be difficult, but it’s important to have the complete picture if you are going to manage it.

• Track spending: Keeping a spending diary online or in a journal will help you identify ways to reduce expenditures and allocate more money to paying off your debt.

• Pay more than the minimum: Charges on credit cards should be paid back in a timely fashion to avoid interest charges on the remaining balance. Paying more than the minimum repayment amount can be a critical first step in reaching your goal.

• Monitor your debit and credit cards: Always check your card statements carefully and on a regular basis in order to spot any irregular transactions as quickly as possible. Using a Mastercard card can protect you from any nasty surprises as liability for an unauthorised charge is limited.

As a customer, you do have the responsibility to inform your financial institution if you become aware of or see an unauthorised transaction on your credit card, or if your card is lost and stolen. Policies do vary depending on the credit card issuer, so make sure you read the small print. However, most providers do offer some extra level of protection on purchases. For example, Mastercard Zero Liability policy[1] protects against unauthorised transactions in store, over the phone and via the Internet.

[1] More information on conditions and exclusions to MasterCard’s Zero Liability policy can be found at: http://www.mastercard.com/nz/personal/en/zeroliability/index.html

ENDS

About the research

The Mastercard Consumer Purchasing Priorities research surveyed 407 people online, aged 18 – 64, between October – November 2016. The results were weighted to represent and reflect gender, age and location statistics.
The survey and its accompanying reports do not represent Mastercard’s financial performance.
About Mastercard

Mastercard (NYSE: MA), www.Mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. Mastercard products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter@MastercardAP and @MastercardNZ, join the discussion on the Beyond the Transaction Blog andsubscribe for the latest news on the Engagement Bureau.

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