Financial Literacy for Every Kiwi: Take Control of Your Money, Protect Your Future

In today’s economic environment, where cost-of-living pressures, rising interest rates, and uncertain global markets are front of mind, understanding how to manage money is more important than ever. Financial literacy—the ability to understand and effectively use financial skills—isn’t a luxury. It’s a necessity.

Whether you’re saving for your first home, planning for retirement, raising a family, or simply trying to stay ahead of monthly bills, building your financial literacy can empower you to make more confident, informed decisions. As part of our national effort to support financial wellbeing across Aotearoa, we’re encouraging every New Zealander to learn the basics and take two immediate, practical steps: review your KiwiSaver and reassess your insurances.

These are not just financial products. They’re key pillars of your long-term financial security. Let’s start with understanding the bigger picture.

What Is Financial Literacy?

Financial literacy is the foundation for smart money management. It includes understanding:

• How to create and stick to a budget

• How to save and invest wisely

• How debt works and how to manage it

• How to plan for emergencies

• How to protect yourself and your assets through insurance

• How to assess and choose appropriate financial products like KiwiSaver funds

A financially literate person is better equipped to:

• Make informed spending choices

• Plan for the future (retirement, home ownership, children’s education)

• Avoid debt traps and high-interest borrowing

• Understand the impact of inflation and interest rates

• Build wealth over time

Improving financial literacy doesn’t mean becoming a financial expert—it means learning the practical skills to confidently manage everyday financial decisions.

Step 1: Understand and Optimise Your KiwiSaver

KiwiSaver is more than a retirement savings scheme. It’s one of the most powerful investment tools available to New Zealanders. Yet, thousands of Kiwis are in the wrong fund type, paying higher fees than necessary, or missing out on government and employer contributions.

Key Concepts to Understand:

• Fund Types: KiwiSaver offers various types of funds—Conservative, Balanced, Growth, and Aggressive. Each type offers a different mix of risk and return. Younger members might benefit from higher-growth funds, while those nearing retirement may prefer lower-risk options.

• Fees: Every provider charges fees, and while small percentages may not seem significant, they can erode your savings over time. Compare providers and choose a fund with competitive fees and solid long-term performance.

• Returns: KiwiSaver funds invest in assets like shares, bonds, and property. Over time, higher-risk funds tend to deliver higher returns, though they may fluctuate in the short term

• Government Contributions: If you contribute at least $1,042.86 a year, you’ll receive a $260.72 government top-up—that’s a 26% ROI boosting your long-term savings.

• Employer Contributions: If you’re employed and contributing, your employer must contribute at least 3% of your gross salary into your KiwiSaver (this will increase in the coming years)—another reason to stay actively engaged with your fund.

What You Can Do:

• Review your current fund. Is it the best fit for your age, goals, and risk tolerance?

• Check your provider’s fees and performance.

• Make sure you’re contributing enough to receive the full government contribution.

• Use official tools such as our KiwiSaver Review tool to assess your investor type.

• Consider talking to a financial adviser for personalised guidance.

Step 2: Reassess Your Insurance Cover

Insurance is often overlooked until it’s needed—and by then, it’s too late to make changes. A strong financial foundation includes protecting yourself, your family, and your assets against the unexpected.

Types of Insurance to Know:

• Life Insurance: Provides a lump sum payment to your loved ones if you pass away. It can help pay off debt, cover funeral costs, or provide long-term support for your whānau.

• Health Insurance: Gives you faster access to treatment in the private healthcare system. This can be critical in emergencies or for managing chronic conditions.

• Income Protection: If an illness or injury prevents you from working, income protection insurance can replace a portion of your earnings.

• Home and Contents Insurance: Covers your home, personal belongings, and liability. It’s essential for homeowners and renters alike.

Why a Review Matters:

• Your needs change. Getting married, having children, changing jobs, or buying a home all affect the amount and type of cover you need.

• You might be over- or underinsured. Paying too much for unnecessary cover—or not having enough when it matters—can both be financially damaging.

• Better options may be available. The insurance market evolves. New policies and providers may offer better coverage, features, or pricing.

What You Can Do:

• List your current insurance policies. What are you paying for—and what’s covered?

• Identify gaps in your cover. For example, would your family cope financially if you were unable to work for six months?

• Shop around or work with a qualified insurance adviser to compare your options – fill out a contact form to discuss this with our team.

• Ensure your policies reflect your current lifestyle and financial commitments.

Bringing It All Together: Financial Literacy in Practice

Financial literacy isn’t just about knowing terms like “equity” or “compound interest.” It’s about understanding how the pieces fit together to create a more secure future.

• Budgeting helps you live within your means.

• Saving and investing (through KiwiSaver, for example) builds wealth over time.

• Insurance protects that wealth from being wiped out by unexpected events.

• Reviews and planning ensure your financial strategy stays relevant as your life evolves.

How to Start Today

You don’t have to make big changes all at once. Start small, stay consistent, and build your confidence.

Here’s a simple checklist:

✅ Find out what KiwiSaver fund you’re in and why
✅ Review your contributions and eligibility for government incentives
✅ List your current insurance policies and check if they still suit your needs
✅ Use trusted tools like Sorted.org.nz to build your knowledge
✅ Talk to a licensed financial adviser for personalised advice
✅ Share what you learn with your whānau and community—financial literacy is for everyone

A Smarter Future for All New Zealanders

Financial wellbeing is part of overall wellbeing. When you feel in control of your money, you feel more secure, less stressed, and better prepared for what lies ahead. As we continue our national campaign to improve financial literacy across New Zealand, we invite you to take the first step by reviewing your KiwiSaver and insurance.

This isn’t about perfection. It’s about progress—taking small, informed actions that lead to lasting impact.

Understand your finances. Review your choices. Shape your future.