Better financial literacy to boost economy

Thursday 16th June 2011

Improving New Zealander's knowledge of personal financial issues will help contribute to a healthier economy based on more savings and less debt, Finance Minister Bill English said.

Speaking at the launch of the New Zealand Centre for Personal Financial Education in Wellington English said better financial literacy, "is not only good for the economy - it also helps individual New Zealanders make better decisions about their own personal finances."

He said the new centre was consistent with Government aims to move the economy from excessive borrowing, consumption and Government spending.

"We want to build faster growth based on savings, exports and productive investment. New Zealanders understand that challenge and we're already seeing some early signs of progress, with households saving a bit more and paying down debt.

"The Government has taken several steps to encourage savings by reducing tax on savings and company profits, and providing extra resources to protect investors through the new Financial Markets Authority."

"English also said the Government was to offer New Zealanders minority shareholdings in four Government-controlled energy companies and Air New Zealand if it secured another term in office at the next election.

"Kiwi investors - particularly those who lost money in collapsed finance companies - are telling us they want new quality investment opportunities," he said.

"I would much prefer to be paying them dividends than borrowing more from foreign lenders and paying them interest."

The Centre for Personal Financial Education, founded by Westpac New Zealand and Massey University, has created a certificate programme for personal finance educators and will undertake a 20-year study to identify why so many Kiwis struggle with their finances.

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