Financial tools entail a lot of jargon – and complex jargon can be the enemy of inclusion and engagement. That’s why we’re pleased with the Commission for Financial Capability’s latest initiative, a National Strategy for Financial Capability.
With the help of over 100 financial organisations, the CFFC is launching a new strategy to simplify the jargon and help Kiwis from all walks of life better understand the language of money, and make well-informed financial decisions.
A timely initiative
Last year has taught us all important lessons, including the importance of building resilience in our financial lives. But as several surveys have revealed, when it comes to navigating this space, lack of financial literacy and awareness has been a barrier for Kiwis.
Retirement Commissioner Jane Wrightson recently recalled those uncertain months. “I was taken aback because I was new to the sector then, about the wide range of response and panic from the public, particularly around KiwiSaver, in the first few months, before I realised that people had misunderstood that KiwiSaver wasn't a savings accounts, it was an investment account that would fluctuate,” Wrightson said. “We do need to understand the differences in simple terms between different kinds of investment products and different kinds of risks.”
How will this strategy help?
The strategy aims to provide accessible and helpful communication and knowledge for Kiwis, to help people gain the skills they need to achieve their goals. The collaborative campaign includes the government, the financial services industry, iwi and non-profit organisations.
“There is now an opportunity to take hold of that conversation, pool our resources and know-how, and incorporate positive messages so people learn how to make good decisions around money, how to plan, know where to find information, and become more financially capable,” the CFFC explains.
“Now, more than ever, we can help New Zealanders make informed choices, to talk, learn, plan, save, invest and be debt-smart, and ultimately attain the retirement they deserve. Increasingly, we understand that New Zealanders view financial capability through different cultural, social, and demographic lenses. Some groups are more privileged than others and inequity is increasing. In the 21st century we have to do better."
As advisers, we’re all about empowering Kiwis to make well-informed decisions about their financial lives. If you have any questions for us, or would like to talk about your needs and goals, please don’t hesitate to contact us.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.