Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

The generation game: financial wins for women at every age

The generation game: financial wins for women at every age

Young women and retirees are least likely to see home ownership as a sign of success

84% of under 25s and over 65s save up for expensive treats

Women under 45 are more accepting of a reasonable level of debt than older women

New research into women’s attitudes towards money show different generations can learn from each other and no-one has the monopoly on being good with money.

The BNZ Financial Futures research also found grandmothers and granddaughters have more in common than they might think.

Women aged under 25 and over 65 are less likely than other women to believe that owning a home is a sign of financial success, with 48% considering it relevant, compared with 57% of other generations [extract one].

The youngest and oldest women also shared some behaviours around money, being more likely than other age groups to save for expensive non-essential items. This could be things like the latest mobile phone or tablet [extract two]. But if they did borrow, they were less likely to pay off the loans with highest interest rates first [extract two].

Donna Nicolof, BNZ’s Head of Wealth and Private Bank, says: “The differences between younger and older women came out when we asked them more about their attitudes towards debt.

“Nearly a third of women under the age of 45 are accepting of a reasonable level of debt compared with only one in five of women over 45 [extract one].

“That’s understandable, as people under the age of 45 have grown up with credit easily available – taking out student loans or using credit cards have become the norm. Whereas older people were brought up to live within their means.

“It was good to see the realisation among half of those women under 25 [extract three], and nearly as many under 35s, who said they could save more if they cut down on some non-essential spending [extract three].

“That’s a question of prioritising spending such as eating out only for special occasions and entertaining at home. It’s worth putting even a small amount aside each week throughout your life to take advantage of the benefits of compounding interest over the long term,” Ms Nicolof says.

More than half of women aged 25-64 regularly pay back more than the minimum on their debt [extract two], the survey showed.

“This is outstanding as saving and reducing debt are crucial strategies for financial wellbeing. People often ask me what to do if they receive a lump sum, from an inheritance for example, and I generally always say reduce your debt,” Ms Nicolof says.

While women in their mid-thirties to mid-fifties are the group most likely to struggle to save or pay their credit card in full each month, their attitude to saving and investing could help them.

Four out of ten women in their mid-thirties to mid-fifties thought it was good to take calculated risks with their money to grow the savings they do have, compared with three in ten of all other ages [extract four].

“A positive attitude towards risk helps in the long run because calculated risk can bring higher returns,” says Ms Nicolof. “We see this with KiwiSaver for example where people in growth funds are likely to have a higher return over the long term than those who invest in conservative funds.”

A study by US fund manager Ellevest, which specialises in investments for women, found female investors tend to benefit from being risk-aware. They often want to understand a risk thoroughly before they take it on, resulting in them accepting ‘smart’ risks which lead to long-term success.

The number of New Zealand women who own shares is relatively low, at 25% according to the Financial Futures research [extract five]. But as they get older women are more likely to own a diverse range of investments, with the number rising from 18% of under 25s to 29% of over 55s [extract two].

“Diversification is the key to growing your wealth so it’s an important factor to pay attention to as you plan your financial future,” Ms Nicolof says.

The Financial Futures research also showed that women understand their finances better as they get older, with 95% of the over 65s having a deep understanding of their financial situation, compared with only 56% of the under 25s [extract two].

“There’s a good level of understanding for all women over 25. But one area where everyone under 65 could focus on more is working out how much money they will need for retirement – 75% don’t know [extract one]. If you set yourself a goal, it’s much easier to work out what you need to do to get there,” says Ms Nicolof.

There are tools that can help with this, including the BNZ KiwiSaver calculator, which can show the impact your fund choice or contribution rate could have on your lifestyle in retirement.

ENDS

The BNZ Financial Futures research was conducted by Perceptive, a New Zealand Market Research Company. The purpose of the research was to understand general financial behaviour and attitudes of New Zealanders, and the impact of rising house prices on attitudes to owning your own home Online interviews were open to 18+ respondents from 6 March 2018 – 12 March 2018, surveying a total sample size of n=2,003

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On Living In Seymour World


So far, the horse race journalism surrounding the polling rise of the Act Party has not included much consideration of the policies an Act -influenced government would pursue. During this honeymoon phase – giddily, David Seymour is being asked whether he is now the real leader of the Opposition – Act is being given free rein to present itself as all things to all people. For now, Act is the hitching post for almost everyone with a grievance. According to its leader, Act is the party that listens, and responds with can-do solutions... More>>


Government: Self-isolation Pilot To Start With 150 People


The goal of safely re-opening our borders and developing new ways for people to travel will start with a self-isolation pilot, COVID-19 Response Minister Chris Hipkins confirmed today. “As part of the Reconnecting New Zealanders plan announced in August, the self-isolation pilot will look at self-isolation for vaccinated travellers... More>>

ALSO:




 
 

National: Launches Plan To Open New Zealand Up
Leader of the Opposition Judith Collins today launched National’s comprehensive plan to tackle Covid-19, end lockdowns and reopen New Zealand to the world. Titled ‘Opening Up’, National’s plan outlines a pathway to avoid nationwide lockdowns and then allow most fully vaccinated travellers to and from New Zealand... More>>

ALSO:



Government: Details Of Interest Deductibility Rules Released

The Government has released the draft legislation outlining the details of the policy limiting the deductibility of interest costs on residential property investments.
Finance Minister Grant Robertson said the interest limitation proposals... More>>

ALSO:


Wellington Council: Mayor Suggests UK-style Arts-sector Insurance Scheme
It’s time New Zealand thought about an arts and events sector insurance scheme, not unlike that in the United Kingdom, says Wellington Mayor Andy Foster. His call follows the cancellation of the World of WearableArts 2021 show... More>>

Land Air Water: Two-thirds Of NZ’s Monitored River Sites Ecologically Impaired

Today, the Land, Air, Water Aotearoa (LAWA) project has released the LAWA River Water Quality National Picture Summary 2021, alongside updated river monitoring result histories for more than 1500 individual sites across New Zealand... More>>

Power: Bill Changes Bring Fairness To Charges

A key recommendation of an independent panel to make electricity charges fairer across all households will be put in place, the Energy and Resources Minister Megan Woods has announced... More>>



Government: Parks expiry of licenses, WoFs and regos
As a result of the Delta outbreak, driver licences, Warrants of Fitness (WoFs), Certificates of Fitness (CoFs), vehicle licences (‘regos’) and licence endorsements that expired on or after 21 July 2021 will be valid until 30 November 2021, Transport Minister Michael Wood has announced today... More>>


 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels