Leading questions: Sarah Mehrtens

Sarah Mehrtens. Photo / Supplied.

Sarah Mehrtens, chief executive New Zealand Bankers Association.

Are you frugal with your spending or do you consider yourself a big spender?

When it comes to my own spending I do enjoy the occasional treat, especially for family and friends - who doesn't? And I'm a great fan of value for money.

Do you like shopping? If so what do like to spend your money on? If not what do you dislike about it?

Some say I have a PhD in shopping. I love to see what's around and get a good deal. Quality counts too. A cheap purchase often ends up as a false economy. The old saying "long after the price is forgotten the quality remains" is still valid. Lowest cost does not mean best purchase, and if we are conscious of sustainability then longevity of use should matter more than price. It's all about getting what you need for the right price. I don't have time for post-purchase dissonance - that feeling you've bought the wrong thing or paid too much.

Can you recall an experience from your youth that taught you something important about the value of money?

I remember my father explaining to me that if as a shop keeper you give away one icecream, you have not just given away the profit from that icecream but the profit from 10 icecreams. You have to sell 10 more icecreams to recover the loss from that one given away. Knowing this has changed my view of cost and profit. Mind you he also told me "You gotta sell a lot of icecreams" meaning making a living is hard work so be careful what you do with what you earn.

Do you have advice or a favourite quote about money for those just starting out?

Even for people who prefer a more carefree approach, it's great to have a plan. It's never too soon to start. There's really useful independent advice and money management tips at sorted.org.nz. When dealing with banks and financial institutions there's no such thing as a silly question. Know exactly what you're getting into and what you'll get out of it. When investing, always consider the risks, not just the rewards. Most importantly, look at what the people you have invested with are doing with the money - whether it looks like they will turn a profit. Many investors just focus on the security provided, when the ability to service and repay the money to you over the long term is what matters more. Banks offer products for a variety of circumstances. If you think you're getting out of your depth financially, talk to your bank. It's actually in their interests to help you.