Survey Of New Zealand Saving Habits

Press, Volume CII, Issue 30154, 11 June 1963, Page 7

Survey Of New Zealand Saving Habits

The savings habits of young people in New Zealand compare very favourably with those of older age groups, according to a nationwide survey carried out for the New Zealand Savings Committee. The survey was carried out by interviewing 600 individual income earners. in 28 main urban, secondary drban and rural areas from Whangarei to Gore, the number questioned in each area being in proportion to the distribution of the labous force. The information received was analysed in terms of age, sex. occupational and income groups.

Working from a list of 15 types of savings institutions, the researchers found that only 2.2 per cent, of all the people interviewed held none of the different types of accounts selected. The average number of accounts held a person was a fraction over three. The majority held more than one Recount, and the number of accounts held varied from one, held by 15.8 per cent, to eight, held by 0.7 per cent., and nine, held by 05 per cent. Three accounts were held by 25.5 per cent of the people seen, and two accounts by 23.5 per cent. More than half the teenagers and more than half the 25-34 years group held two or three accounts.

The major numbers of holdings of all the people interviewed were: savings banks, including Post Office Savings Bank. 79.7 per cent.: life assurance policies. 59.5 per cent.; trading bank current accounts, 47.5 per cent.: superannuation or other pensions schemes, 26.8 per cent.; building society shares,, 22.5 per cent.; thrift clubs. 14.5 per cent; stocks and shares. 13.5 per cent

Men showed a stronger tendency than womesi to* ward the use of life assurance, trading bank current accounts, building societies, stocks and shares and superannuation and other schemes whereas women favoured thrift club and savings banks. Repayments One-ttiird of all the people interviewed had made mortgage repayments during the preceding 12 months and onefifth had ploughed back money from income into business or farm. Investigation showed that the main purposes for which money deposited in all accounts was intended to be used were security. 24 per cent.; acquisition of possessions. 18 per cent.; personal and family obligations, 11 per cent. Some 14 per cent, had no definite plans for their savings. It was found that 43.5 per coot. <>f the total number interviewed claimed to have increased their savings over the preceding 12 months. 20.3 per cent, reported a decrease, and 34.3 per cent, claimed there was no change. Sixty per cent, of the teenagers claimed to have increased their savings, a much higher proportion than in any other group, and those in which the highest proportion reported no change were the 35-44 year group, 45 per cent., and the 55 and over group. 43 per cent. The main reasons given for increasing savings were increased income. 64.8 per cent., planned savings, 28 per cent., and decreased expenses, 17.2 per cent. Some people gave more than one reason.

Principal reasons for a decrease in savings were the cost of living, 50 8 per cent.; inadequate income, 26.2 per cent.;. specific expenditure. 21.3 pgr cent.; and housing expenses, 20 per cent. The chairman of the New Zealand Savings Committee, Mr C A. McFarlane, said that the survey had been closely studied by the New Zealand Savings Committee in conjunction with the planning of Nejv Zealand Savings Week, which will be held in the first week in September and as a guide to future activities. He believed the survey would be of great use to savings institutions and that it provided a valuable reference for economists generally.