Financial Advice New Zealand has referenced two key statistics as part of its support for Money Week, taking place from 3-9 September:
- Each year in 54,800 Kiwi households, the main earner’s income is lost through long term illness, and over 50% lose it for six months or more
- Some uninsured Kiwi drivers who were in a road-accident as far back as the 1990s, were still paying back the debt as recently as last year
Financial Advice NZ CEO, Katrina Shanks, says too few Kiwis seek financial advice, which can help them through financial stress when life events impact on their well-being.
“Debt levels are high; the cost of living is high; savings are low and so are the number of Kiwis covered by insurance, or with a plan in place for their financial future or the ‘what-ifs’ of life,” said Shanks.
Shanks noted that the term ‘financial resilience’ is one that does not currently resonate with Kiwis.
“We want to see ‘financial resilience’ become a Kiwi household term; a term that will support awareness of the big and small things that people can do to build their financial well-being and to protect against life’s unpredictable turns,” she explained.
The Commission for Financial Capability (CFFC) commented last week Money Week is a great opportunity for financial advisers to get amongst the action (see: Money Week Big Opportunity…).
CFFC Head of Community Programmes, Peter Cordtz, said Money Week is not just about saving but about making sure Kiwis are properly insured.
“It’s not a question of whether you can afford it, it’s about understanding what’s at risk if you don’t have a buffer or adequate coverage,” said Cordtz.
“A first step is for families to start talking openly about money, have an honest discussion about how they would deal with a financial crisis,” said the Minister for Pacific Peoples’, Aupito William Sio, speaking at an event at Mangere Markets on Saturday, September 1, to preview the start of Money Week.
“Building our financial capability will help our families, our communities and our country, so we as a nation can deliver the services our people need.”