Most New Zealanders have learnt the value of financial literacy the hard way, according to a new survey published this month.
The study carried out for Partners Life and Banqer found three-quarters of respondents have realised the importance of financial knowledge after weathering the recent bout of inflation.
Just over 75 per cent of the 1,000 individuals polled said the surge in cost-of-living has made them “more aware of the importance of financial literacy and budgeting skills”.
Despite an increasing consciousness of the need to better-understand money-related issues, the survey found 84 per cent of respondents have never received formal financial literacy training.
As part of the ‘Money Month’ program during August, Partners Life and Banqer are hosting a free online course targeting all NZ adults.
Due to start today (Monday, August 12), the ‘Money Month Challenge’ includes opportunities to “win more than $5000 worth of prizes”, the promotional material says, in a play-to-learn online environment imparting “essential financial concepts, while increasing confidence and skills to manage your money effectively in real life”.
And the survey suggests many adult New Zealanders might benefit from the effort with about two-thirds reporting money-linked relationship issues and half experiencing sleep-loss due to financial worries.
Roughly 40 per cent of respondents said they struggled to cover monthly expenses while a quarter “rely on credit cards or loans to make ends meet”.
“Only half of New Zealanders (52%) feel they are making the most out of their money; of those that aren’t, around half (46%) say it’s because of a lack of financial planning or knowledge,” the report says.
Simon Brown, Banqer co-chief, said while financial literacy will soon be a compulsory part of the school curriculum, there is a knowledge gap among many New Zealanders already out of the educational system.
“Unlike future generations who will benefit from our in-school programmes, nearly half of adults (46%) have learned what they know about money through potentially costly mistakes,” Brown said in a release.
Money Month sits under the aegis of the government-run Sorted website with a range of activities slated to run through August.