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The Sorted Kiwi: the Effect of Identity on the Achievement of Financial Well-Being in New Zealand

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The Sorted Kiwi: the Effect of Identity on the Achievement of Financial Well-Being in New Zealand The Sorted Kiwi: The Effect of Identity on the Achievement of Financial Well-Being in New Zealand Prepared by Robyn Dupuis With funding from the sponsors of the Ian Axford (New Zealand) Fellowships in Public Policy July 2009 Established by the Level 8, 120 Featherston Street Telephone +64 4 472 2065 New Zealand government in 1995 PO Box 3465 Facsimile +64 4 499 5364 to facilitate public policy dialogue Wellington 6140 E-mail [email protected] between New Zealand and New Zealand www.fulbright.org.nz the United States of America © Robyn Dupuis 2009 Published by Fulbright New Zealand, July 2009 The opinions and views expressed in this paper are the personal views of the author and do not represent in whole or part the opinions of Fulbright New Zealand or any New Zealand government agency. ISBN 978-1-877502-10-1 (print) ISBN 978-1-877502-11-8 (PDF) Ian Axford (New Zealand) Fellowships in Public Policy Ian Axford (New Zealand) Fellowships in Public Policy were named in honour of Sir Ian Axford, an eminent New Zealand astrophysicist and space scientist who is patron of the fellowship programme. Since his education in New Zealand and England, Sir Ian has held Professorships at Cornell University and the University of California, and was Vice-Chancellor of Victoria University of Wellington for three years. For many years, Sir Ian was director of the Max Planck Institute for Aeronomy in Germany, where he was involved in the planning of several space missions, including those of the Voyager planetary explorers, the Giotto space probe and the Ulysses galaxy explorer. Sir Ian is recognised as one of the great thinkers and communicators in the world of space science, and is a highly respected and influential administrator. A recipient of numerous science awards, he was knighted and named New Zealander of the Year in 1995. Ian Axford (New Zealand) Fellowships in Public Policy have three goals: • To reinforce United States/New Zealand links by enabling fellows of high intellectual ability and leadership potential to gain experience and build contacts internationally. • To increase fellows’ ability to bring about changes and improvements in their fields of expertise by the cross-fertilisation of ideas and experience. • To build a network of policy experts on both sides of the Pacific that will facilitate international policy exchange and collaboration beyond the fellowship experience. Fellows are based at a host institution and carefully partnered with a leading specialist who will act as a mentor. In addition, fellows spend a substantial part of their time in contact with relevant organisations outside their host institutions, to gain practical experience in their fields. The fellowships are awarded to professionals active in the business, public or non- profit sectors. A binational selection committee looks for fellows who show potential as leaders and opinion formers in their chosen fields. Fellows are selected also for their ability to put the experience and professional expertise gained from their fellowship into effective use. i We acknowledge and thank the following government and corporate sponsors that support the Ian Axford (New Zealand) Fellowships in Public Policy programme: • Department of Building and Housing • Department of Corrections • Department of Internal Affairs • Department of Labour • Department of the Prime Minister and Cabinet • Mighty River Power • Ministry for Culture and Heritage • Ministry for the Environment • Ministry of Agriculture and Forestry • Ministry of Defence • Ministry of Economic Development • Ministry of Education • Ministry of Fisheries • Ministry of Foreign Affairs and Trade • Ministry of Health • Ministry of Justice • Ministry of Research, Science and Technology • Ministry of Social Development • New Zealand Customs Service • New Zealand Police • State Services Commission • Te Puni Kōkiri (Ministry of Māori Development) • The Treasury ii ACKNOWLEDGEMENTS I cannot express enough gratitude to the wonderful people at the Retirement Commission who welcomed me into their family and supported me during my six months conducting research on financial literacy and financial well-being in New Zealand. In particular, my host mentor, Retirement Commission Executive Director David Feslier, was amazingly supportive and helpful. His knowledge and insights, as well as his enthusiasm and encouragement greatly contributed to the progress of my research and my overall enjoyment of this experience. It was also a tremendous honour to work with Retirement Commissioner Diana Crossan whose depth of knowledge and passion about financial education issues is inspiring. It’s easy to see why the Retirement Commission as an organization and Commissioner Crossan personally are global leaders in the financial literacy field. Much thanks also goes to my New Zealand academic mentor, Dr Ro Parsons of the Ministry of Education, who helped keep me on track and down to Earth! I so enjoyed our meetings and greatly appreciate the time she took to review the many outlines and drafts of my increasingly lengthy work and then the final ‘collapsed’ version! Her candid and practical advice was always welcome! I would also like to thank my United States academic advisor, Dr Tahira Hira of Iowa State University, a key leader in the financial literacy field and member of the President’s Advisory Council on Financial Literacy for her thoughtful contributions and review of this work. I met with Dr. Hira the month prior to interviewing for the fellowship and I’m sure the meeting charmed my chances of being accepted. Thanks also to a number of others who volunteered to review this work prior to its submission. In addition to policy staff from Te Puni Kōkiri (Ministry of Māori Affairs) and the Ministry of Pacific Island Affairs who reviewed the Māori and Pacific financial attitudes and behaviours ‘snapshots’, Alison O’Connell and Grant Scobie reviewed the work at one of its most ‘lengthy’ stages. Their comments were helpful to me in ultimately producing a more ‘manageable read’. The Fulbright New Zealand Board of Directors and staff were all wonderful in helping my family acclimate to New Zealand. Mele Wendt, Martin Boswell, Kari Kameswari and Andy Mitchell were of particular assistance both prior to and during my fellowship experience. A number of Fulbright alumni were very welcoming and helpful including, among others, Graham and Nancy Cochrane who had us to tea and took us to the All Blacks rugby match between New Zealand and France! One of my family’s fondest memories will involve the two other ‘Axford fellow families’ with whom we lived at Chevening. Paul Goren, Alexandra Bonardi, their spouses and children will all be greatly missed! It has been a great honour to share this fellowship with these two outstanding people and the New Zealand experience with their wonderful families. I look forward to hearing about their future pursuits and successes! My family was enormously helpful during this fellowship experience. My mother in particular went above and beyond by helping my husband and I care for the children iii throughout our time in New Zealand. Both Kacey and Truett ‘aged a year’ here and grew enormously in experience despite their young ages. Back in Washington I must extend great thanks to prior Ian Axford fellow David Knutson for recommending this experience. Also, much thanks to the Washington House of Representatives and in particular Office of Program Research Director Ken Conte for graciously allowing me a leave of absence to come to New Zealand. I also have to extend gratitude to our wonderful friends back in Gig Harbor, Washington upon which we relied heavily to deal with household responsibilities. The following people contributed significantly to this research. I am very appreciative of their time and willingness to share their thoughts, opinions and knowledge. Jessica Batt, Fonterra Focus Group Martin Boswell, Fulbright New Zealand Ross Boyd, Department of the Prime Minister and Cabinet Tracey Bridges, Senate Communications Phil Briggs, Economics Department, Reserve Bank of New Zealand Joel Carpenter, Radio Station Manager and Anglican Minister Johanna Carter, Wellington Women Focus Group Nadia Chen, Cana Financial Service Ltd. Peter Conway, New Zealand Council of Trade Unions Philippa Conway, Wellington Women Focus Group Diana Crossan, Retirement Commission Carol Dale, Wellington Citizens Advise Bureau (CAB) Budget Service Claire Dale, University of Auckland Retirement Policy and Research Center Stella Daniell, Wellington Women Focus Group Donna Dentice, Young Enterprise Trust Sir Roger Douglas, Member of Parliament David Feslier, Retirement Commission Kalolo Fihaki, Ministry of Pacific Island Affairs Craig Foss, Member of Parliament Raewyn Fox, New Zealand Federation of Family Budgeting Services (Inc) Heather Garside, Wellington Women Focus Group Anna Griffiths, Retirement Commission Jessica Grinstead-Sacroug, Fonterra Focus Group Kassie Hartendorp, Victoria University Focus Group Gary Hawke, Emeritus Professor, New Zealand Institute of Economic Research Mary Holm, Financial Columnist Peter Johnston, Retirement Commission Vikas Joneja, Fonterra Focus Group Shane Jones, Member of Parliament Penny Kidd, Retirement Commission David Kneebone, Retirement Commission Mariya Kupriyenko, Victoria University Focus Group Lynn Lai, SavY Sundae Lim, Fonterra Focus Group Michael Littlewood, University of Auckland Retirement Policy and Research Centre Debra Marshall, Fonterra Focus Group Kathryn Maloney, Retirement Commission iv Anna
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