Young New Zealanders’ perceptions of political and financial wellbeing

1. Context
2. The study
3. Key findings
4. Points to consider

Context

This report is part of a 20-year longitudinal study (launched in 2012) exploring New Zealanders’ financial knowledge and financial education experiences. Main updates happen every 5 years with smaller ‘keeping-in-touch’ (KIT) surveys happening periodically. This KIT survey coincides with the 2014 New Zealand general election and helps provide a periodic snapshot of participants’ financial knowledge progression and financial wellbeing. Participants were aged 18-22 at the time of the first survey and are 20-24 years old at the time of this update.

The purpose of this research is:

1. To help maintain ongoing communications and contacts with participants in the longitudinal study, thus maintaining the integrity of the study.
2. To help inform the longitudinal study’s long-term objectives and understand indicators within a topical framework (e.g. an election).

The study

An online interim survey comprising of 16 questions was sent to all 266 participants of the full longitudinal study, who were originally selected at random from six regions in New Zealand: Auckland, Christchurch, Nelson, New Plymouth, Palmerston North and Wellington. From that group, 148 (56%) participants completed the survey.

The survey seeks to explore individuals’ perceptions of:

1. financial decisions and the decision-making process.
2. current financial wellbeing and outlook on financial futures, including the potential impact of the 2014 election.

Key findings

• 71% feel ‘in control’ of their financial situation, with 69% feeling good about their money management skills and 39% reporting being satisfied with their current financial status.
• Most (70%) had taken no steps to improve their money management skills, feeling it was unnecessary. Of those who took steps to improve their money management skills (29%), 45% said they spoke with family, 40% spoke with friends but nobody sought professional help or advice, showing that young adults rely on informal sources of information.
• 36% said they made at least one major financial decision over the last 12 months. Of those, 31% changed jobs and 27% gave up their job to travel. Of those who made a major financial decision in the last 12 months, only 4% bought a house.
• 41% believe they are better off over the previous 12 months, while 35% think they are worse off, leaving 24% feeling their situation is about the same.
• 78% think financial inequality is a problem in New Zealand. This finding is emphasised with only 26% saying they feel included in the financial direction of New Zealand.
• 41% believe they and their friends are worse off financially than similar groups were 15 years ago.
• 32% reported that lower rent would have the most impact on their financial wellbeing.

Points to consider

Methodological limitations: findings are generally descriptive in nature and do not allow for in-depth analysis at this stage in the research. The next full update of the report will take place in 2017. Caution must be exercised when interpreting the percentages here as some of them refer to very low numbers (less than 20 people in some cases). Relevance / transferability: this study focuses on the views and experiences of young adults in New Zealand, and so has limited transferability for people interested in young adults in other countries such as the UK.

Full report

Young New Zealanders' perceptions of political and financial wellbeing - full report