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Money is a tool that makes life happen and like all tools, money is only useful when the person using it knows what they’re doing. Learning about money is one of the best possible skills you can have in the modern day. It pays - literally - to get financially fit, and not just to get out of debt faster. Money knowledge objectively improves nearly every facet of your life.
Don’t believe me? Check this out.
Learning about money is awesome, and not just because it gives the skills needed to make great financial decisions. Research has shown that financial education results not only in more positive behaviours around money like better saving habits, but also has been linked with:
One study even found that financial education was linked with a 5% drop in the rate of tobacco use. Yes, learning about money can actually help you stop smoking.
A lot of these results are likely down to the fact that when you know about money, you can use it more effectively. That leaves you with more room to pursue what you want in life, whether that’s looking after your health, reducing stress, chasing after a promotion or your dream career, and so on.
When you know your dollars make sense, you can spend your time on the things that matter, instead of worrying about the state of your bank account.
Okay, so learning about money is awesome. But the reality is that New Zealand has a bit of a financial literacy problem. Less than half of the population considers themselves “financially literate”, according to research from the Financial Services Council. That’s a lot of Kiwis without confidence in their money skills.
A big part of this is that there’s still a big stigma around talking about money and an even bigger one around asking for help to learn about it. Sometimes there aren’t any useful resources readily available. And there’s the fact that money can seem like a hugely complex topic that’s too big to tackle, so people don’t.
We know that learning about money makes your life better, but few Kiwis are taking the steps necessary to enjoy the benefits. Good news! By reading this series, you’re already bucking the trend and taking the hardest step: the first one.
There are heaps of ways you can learn your way around money. These articles are a great place to start, and we’re hoping you’ll be able to walk away from them with a solid understanding of the most important money topics. But don’t stop here!
Talk to your friends, and your family, trade stories and tips and tricks, and ask questions of people who’ve been there and done that. Sorted.org.nz offers heaps of useful articles that dig into mortgages, credit cards, personal loans, car loans, and more. If you want to delve into the details and get some customised advice, consider heading to a financial advisor.
However, you choose to learn about money, do it with the knowledge that you’re improving your life - not just your bank account.
This was originally posted as an education article on the Money Sweetspot customer portal. If you read this as one of our customers, you would've earned some money off your loan! Do the mahi, get the treats. Find out more.
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