Now’s your chance, new investors

Alot of Kiwis are feeling anxious about their financial security and many will feel a sense of lost or reduced wellbeing. Some are stressed about putting food on the table, others concerned about when they will be able to move out of home.

These financial cycles are an inevitable part of life, affecting every single person at least a few times throughout their lifetime. As our financial system waxes and wanes, it can feel as though we’re at the mercy of its tides.

In most contexts, a lack of control can be unnerving, and with our financial situation being a component of wellbeing, this environment has consequences that ripple through our lives.

Although for many the current focus is on post-vention and intervention, financial education helps individuals and collective societies prepare for, navigate, and make the most of these cycles.

In addition, knowing what to expect reduces stress by helping individuals see the way through a downward turn to be better off financially in the long run.

Those who have an understanding of how to plan, save and invest are far more likely to gain from the market cycles than those who don’t. This uneven access to this financial knowledge is a major factor fuelling inequality in Aotearoa.

Looking at the extended bull market following the global financial crisis, it’s times like these that are a great opportunity for first-time investors to get started. Levelling the playing field through education empowers more Kiwis to make the most of their own financial journey, protect and prepare themselves for these cycles.

This all feeds into an increased standard of living and wellbeing in the long run, by giving all Kiwis access to the knowledge they need to succeed.

From a social perspective, making financial education more accessible to the rangatahi of Aotearoa is something that could support the reduction of poverty in the long run.

Equipping students with the knowledge they need to budget, save, protect themselves against risk or financial deception, and invest results in more financially empowered young Kiwis. Empowered, in part, to be prepared for times of hardship, which as a nation we’re inadequately ready for with 80 per cent of New Zealanders having less than $10,000 in savings. Not only is this a symptom of the generational inequality increasing the void between those with and without, it’s also compounded by a lack of exposure to the financial education needed to thrive in our current financial system.

Already, alongside Banqer, initiatives like The Young Enterprise Trust, Smart$, and Sorted In Schools are providing financial education to primary and high school students throughout Aotearoa. These all enable access to financial knowledge in the communities that need it most, contributing to greater equality and faster economic recovery. Though it may not solve inequality today, this access will make sure the next generation of Kiwis are empowered to make good financial decisions tomorrow.

While our current focus is on ensuring the wellbeing of our communities, wha¯ nau, and friends with financial support, food, and employment opportunities, we also need to start raising our line of sight above the immediate crisis.

We need to look at preventative measures that ensure not so many of us topple over the cliff, and if we do, that the fall isn’t as far. Another financial crisis during our kids or grandkids’ lifetime is all but certain. The best investment we can make now is in their financial education.

We need to look at measures that ensure not so many of us topple over the cliff