New Zealand Tops Regional Financial Literacy Survey

Kiwis again prove themselves to be savvy money managers

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Auckland, New Zealand – July 29, 2013 – New Zealanders have proven themselves to have the best basic money management skills in the Asia-Pacific region, according to MasterCard’s latest research into financial literacy.

The MasterCard Index of Financial Literacy survey polled consumers on three aspects of financial literacy including their basic money management skills, investment knowledge and financial planning to determine the level of basic money management skills in terms of budgeting, savings, and responsibility of credit usage.

New Zealand’s overall financial literacy index increased to 74 points (up from 73 points in the previous 2012 H1 survey), placing it at the top spot in the Asia-Pacific region.

New Zealanders also came top in overall basic money management (77 points), which includes skills such as day-to-day budgeting (94 points), keeping up with bills (79 points), credit commitments (75 points) and setting money aside for big purchases (61 points).

New Zealand scored 74 points in overall financial planning, and was ranked fourth in the region in terms of understanding financial investment with 63 points.

“Kiwis have once again proven themselves to be savvy when it comes to managing their finances,” said MasterCard’s New Zealand country manager, Albert Naffah.

“The survey shows a high number of Kiwis are thinking about their financial futures and actively managing their money. These results are a positive sign that New Zealanders are taking responsibility for understanding their financial positions.

“This is welcome news on the back of the six-year anniversary of KiwiSaver, which has had a strong uptake from New Zealanders since its inception and will have helped to kick-start many Kiwis retirement savings habits.

“Worth noting is the very high score of 94 in regards to understanding how to budget day-to-day finances. The recent tight economic times have driven home the importance of budgeting properly and Kiwis have taken this on board as they watch carefully how they spend their pennies.

“The Index of Financial Literacy is a good measure of how well people are making informed decisions around their personal finances. New Zealand is a clear standout,” said Mr Naffah.

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