Kiwis urged to break money talk taboo for financial wellbeing – Editorial
- 70% of Kiwis worry about money, with one in six feeling financially overwhelmed.
- The Employment Relations Amendment Act now protects employees discussing salaries to improve financial transparency.
- Agencies and the Retirement Commission are promoting financial wellbeing and literacy through education and resources.
Kiwis will talk about the All Blacks, the price of butter, what the weather is doing this weekend but money? No way.
It’s not that New Zealanders don’t care about finances. A report last year revealed 70% of Kiwis worried every day, week or month about money.
That level of concern was the highest since the Covid-19 pandemic unfolded in 2020. But it is no wonder given one in six New Zealanders feel they are sinking financially.
However, people appear to be worrying privately. Checking bank apps when no one is close by. Searching how to get ahead online in the late hours of the day. Mentioning a salary in a group setting couldn’t be more taboo.
The national allergy to financial transparency is hurting New Zealanders in the pocket. How can Kiwis tell if they’re being overcharged, underpaid, or generally just ripped off? It’s hard to negotiate a pay rise when people don’t know what their co-workers earn.
The country’s workforce is being empowered to discuss pay with the introduction of the Employment Relations Amendment Act, which means it is now legal and protected for employees to talk about their salaries.
But financial advisers and budgeting experts reckon Kiwis are too reserved about money matters. They say people need to start having candid conversations to increase their knowledge.
Talking about money doesn’t mean a person is greedy, bad-mannered, or virtueless. Instead, they are empowered, informed and better able to help others with their financial conundrums.
And while a new wave of learners will be able to shirk off the national shame as schools prepare to bring in financial education from next year, what about people now?
A quiet undercurrent is working to turn the tide on the country’s financial literacy.
Agencies, such as the Ministry of Social Development, are shifting focus from budgeting to financial wellbeing. The Retirement Commission is leading a national strategy involving more than 900 partners to reduce debt, increase savings, build investment confidence and more. Free or subsidised courses are available and some culturally tailored.
What would make waves is if workplaces were mandated to come to the party to offer employees financial education.
For many people, their financial literacy journey begins with that first pay cheque. The one that disappoints because they didn’t understand how tax, student loan repayments and KiwiSaver work.
The transaction would go hand-in-hand given 83% of New Zealanders aren’t coping with financial problems and most believe being stressed about money negatively impacts their work productivity.
In the meantime, Kiwis can start with a small change. The next time someone asks what a person earns, don’t panic.