Survey shows most NZers rate poorly as financial planners

A survey by BNZ has lifted the lid on the financial DNA of New Zealanders and their underlying attitudes to money and finance.

BNZ undertook the survey to find out more about how New Zealanders feel about their money, how they make big financial decisions, and from whom they take financial advice.

Overall, the majority of New Zealanders see themselves as financially conservative. The vast majority say we don't like high risk investments, we make our own decisions on major investments choosing not to take professional advice, we plan ahead carefully, and we prefer not to have debt.

Many of us regard money as a necessary evil. Based on the survey results, nearly 55 per cent of New Zealanders say they would prefer to watch television or do some exercise rather than sort out their finances. More than 10 per cent of people say they prefer visiting the dentist to concentrating on their finances.

The survey indicates that half of us barely look at our bank statements, preferring to put them away in case we need them later. A further 8 per cent of us say we glance at bank statements and then throw them out, 2 per cent of people throw the statement out without opening them, and 1 per cent of people say they are too scared to look at their statements.

Overall, according to the survey, at least 11 per cent of people have little or no idea how much they have in the bank or how they are spending their money. These people don't know the first thing about their finances.

The remaining 38 per cent of people say they review their statements thoroughly, taking note of spending and adjusting their budgets accordingly.

BNZ's General Manager of Personal Financial Services, Blair Vernon, says the report card that emerges from the survey includes some good news and some not so good news on New Zealanders and their attitudes to their personal finance.

"Overall, New Zealanders recognise that wealth is something you have to earn and plan for. So, it's worth putting effort into your personal finances and looking after your finances carefully. That's good news.

"On the other hand, some of us are reluctant to face some issues about our finances and we're reluctant to take professional advice. Some of us try to hide from the facts even though we know we should be paying more attention to our finances," Mr Vernon says.

"One way to think of your wealth is that it is comparable to your physical health. If you are willing to take professional advice and care regarding your health then why wouldn't you do the same with your wealth?"

FOUR TYPES

The survey shows that the population can be divided into four basic financial personality types. Rarely does a person fit neatly into one type; most people have their psychological base in one type and they show characteristics of at least one other type.

The four basic types are:

* Heartlanders, who make up 43 per cent of the population. These people are careful about their investments and they prefer not to be in debt. Relatively speaking, they are more willing to seek financial advice. Heartlanders are focussed on their families and providing for those families; in short, they are the people who keep New Zealand running at a steady and reliable pace.

* Fun lovers, who make up a little less than a quarter of the population. Fun lovers see themselves as fun-loving and carefree. They are less likely to research options before making a major purchase. They live for today, they love a good party, and they see money as providing freedom and enjoyment. On average, fun lovers are more likely to be young people and they are more likely to work in one of the professions.

* Strategists, who also make up a little less than a quarter of the population. Strategists thoroughly research options before making a major purchase, they plan ahead carefully, and rarely do they spend more than they can afford. They are often ambitious and forward-thinking people.

* Go-getters, who make up about 13 per cent of the population. On average, go-getters are more likely to see making money as an exciting means of providing independence and freedom, and they are more likely to respect wealthy people. Go-getters see themselves as people who have great business ideas and get them off the ground. They love new things, especially the latest in technology. Of all the financial personality types, go-getters are more likely to live in Auckland and they are more likely to be men.

The survey was conducted by UMR Research. Five hundred people, aged 18 years or more, were surveyed by telephone across the country. The margin of error is plus or minus 4.4 per cent.