Financially Stressed Younger Kiwis Urged To Take More Interest In Their Future Wellbeing

Younger Kiwis who are increasingly worried about cost-of-living pressures and wage stagnation are being urged to take control of their future financial wellbeing.

The latest Financial Services Council (FSC)’s research report, ‘Money and You – The Lost Generation?’ finds people in the 18-39 age group are concerned about rising inflation, interest rates and house prices.

In response, Laurence Kubiak, Chair of research sponsor Trustees Executors, is calling on younger Kiwis to step up and take a more active interest in planning for their financial security.

“If you are single, no one should care more about your financial wellbeing than you, so it's important to have a financial plan for yourself. This means doing basic things like budgeting to keep expenses below your income, having an emergency account, and saving for the things you want.

“When your relationship status changes you then need to participate in your finances as a team and make financial decisions together. Understand where your money is going and how much money you have in savings and in investments. This would also mean less dependence on the “bank of mum and dad” even if they are in a position to help, which accounts for nearly half of first property purchases by Generation Rent.

“Having a solid financial plan will allow you to save money, afford the things you really want, and achieve long-term goals like saving for a property and retirement.”

Mr Kubiak said in an environment of rising property prices young Kiwis should also start thinking about building wealth.

“Taking an active interest in your financial future will enable young Kiwis to make the informed choices to secure their financial wellbeing. It requires planning and reinforces the importance of boosting medium to long term savings.

“The current economic outlook is very challenging for many younger Kiwis, with rising inflation and interest rates, and low wages growth. There is also the disparity between those Kiwis who bought assets before the boom, and those that have been unable to participate. 

“The latest Money and You research reinforce that planning for your future is more important than ever for younger Kiwis who are starting out. As challenging as this can be, this period is also just one stage of an investment cycle that can be managed and even taken advantage of.”

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