More people have a higher level of knowledge in 2009 than in the previous survey.
To measure financial knowledge, people were scored on their answers to 42 financial knowledge questions. Their score determined whether they fell into the low, medium or high knowledge group. The threshold scores that defined each group were the same as the previous survey.
Find out who knows more.
See the demographic profile.
Low
- 31% are in the low knowledge group. People in this group are more likely to be:
- 18 – 24 year olds or 65+ year olds.
- Māori and Pacific people.
- Only primary or basic secondary educated.
- Tenants, rather than homeowners.
- Not in paid employment.
- Semi-skilled or in occupations such as labourers or domestic workers.
- Low income.
Medium
26% are in the medium knowledge group. This group is noticeably smaller than in the previous survey (down eight points) as a result of people increasing their knowledge and moving to the high knowledge group. There is an even spread of demographic categories.
High
- 43% are in the high knowledge group (up 10 points). People in this group are more likely to be:
- Between 35 and 54 years of age.
- New Zealand European.
- Tertiary educated.
- Home owners.
- Skilled executives or professionals.
- Household income of more than $50,000.
Who knows more?
The gap in knowledge between men and women has narrowed, with a 12 percentage point increase in the number of women with a high level of knowledge, and smaller proportions of women in the low (down six points to 34%) and medium (down six points to 26%) knowledge groups.
The biggest improvements have been among women aged 55-64 and women aged 18-24.
Financial knowledge is highest among those aged 35-64. The most notable change has been in the knowledge of 55-64 year olds, with 53% now in the high knowledge group (up 20 points).
One in five with a household income of $20,000 or less have a high level of financial knowledge, up from one in 10 in the previous survey.
One in 10 of those with a household income of more than $100,000 have a low level of financial knowledge (no significant change).
Of those not in paid employment, 28% have a high level of financial knowledge (up nine points); 52% of those in paid employment have a high level of financial knowledge (up 11 points).
Demographic profile
| Demographic categories | Low knowledge | Medium knowledge | High knowledge | ||||
|---|---|---|---|---|---|---|---|
| 2009 n= | 2006% | 2009% | 2006% | 2009% | 2006% | 2009% | |
| Total respondents |
850 | 33 | 31 | 34 | 26 | 33 | 43 |
| Males | 366 | 25 | 28 | 36 | 27 | 39 | 46 |
| Females | 484 | 40 | 34 | 32 | 26 | 28 | 40 |
| 18-24 | 83 | 57 | 57 | 32 | 25 | 11 | 18 |
| 25-34 | 116 | 30 | 37 | 42 | 30 | 29 | 33 |
| 35-44 | 166 | 24 | 20 | 30 | 23 | 46 | 57 |
| 45-54 | 160 | 22 | 15 | 28 | 25 | 50 | 60 |
| 55-64 | 145 | 28 | 21 | 39 | 27 | 33 | 53 |
| 65+ | 180 | 45 | 44 | 33 | 28 | 23 | 29 |
| New Zealand European | 640 | 24 | 24 | 37 | 27 | 39 | 49 |
| Māori | 112 | 67 | 56 | 22 | 31 | 11 | 13 |
| Pacific peoples | 32 | 85 | 66 | 11 | 12 | 4 | 21 |
| Asian peoples | 60 | 56 | 40 | 24 | 28 | 20 | 32 |
| Primary or basic secondary education | 205 | 54 | 53 | 32 | 28 | 14 | 18 |
| Secondary school qualification (only) | 197 | 34 | 34 | 33 | 30 | 33 | 37 |
| Tertiary or post-graduate education | 441 | 20 | 20 | 35 | 24 | 45 | 56 |
| Home owned by self/partner | 437 | 23 | 22 | 33 | 22 | 44 | 57 |
| Home rented | 286 | 45 | 44 | 36 | 28 | 19 | 28 |
| In paid employment | 507 | 24 | 22 | 35 | 26 | 41 | 52 |
| Not in paid employment | 343 | 51 | 46 | 30 | 26 | 19 | 28 |
| Retired | 160 | 45 | 46 | 32 | 23 | 23 | 31 |
| Household income of $20,000 or less | 159 | 62 | 59 | 30 | 20 | 8 | 21 |
| Household income of $20,001 to $50,000 | 230 | 38 | 38 | 34 | 30 | 28 | 32 |
| Household income of $50,001 to $100,000 | 205 | 21 | 14 | 38 | 30 | 42 | 56 |
| Household income of more than $100,000 | 146 | 10 | 9 | 31 | 20 | 59 | 71 |
