Improving New Zealanders’ knowledge of personal financial issues will help contribute to a healthier economy based on more savings and less debt, Finance Minister Bill English says.

“Better financial literacy is not only good for the economy – it also helps individual New Zealanders make better decisions about their own personal finances,” he said today in launching the New Zealand Centre for Personal Financial Education in Wellington.

“The new centre is consistent with the Government’s programme to move the economy away from excessive borrowing, consumption and government spending.

“We want to build faster growth based on savings, exports and productive investment. New Zealanders understand that challenge and we’re already seeing some early signs of progress, with households saving a bit more and paying down debt.

“The Government has taken several steps to encourage savings by reducing tax on savings and company profits, and providing extra resources to protect investors through the new Financial Markets Authority.

“In addition, the Government has confirmed it will offer New Zealanders minority shareholdings in four Government-controlled energy companies and Air New Zealand, should it win another term at the election in November.

“Kiwi investors – particularly those who lost money in collapsed finance companies – are telling us they want new quality investment opportunities,” Mr English says. “I would much prefer to be paying them dividends than borrowing more from foreign lenders and paying them interest.”

The Centre for Personal Financial Education, founded by Westpac New Zealand and Massey University, has created a certificate programme for personal financial educators and will undertake a 20-year study to identify why so many Kiwis struggle with their finances.