What is Financial Capability?

Building Wealthy Lives

Financial capability is more than money


Financial capability goes deeper than what we know about money. It’s feeling confident to make wise judgements about how we use and manage our money in ways that benefit us now and in the future, enable us to reach our goals, provide for our family and, ultimately reach retirement in good financial shape.

Everyone's attitude to money is different


AT CFFC, we understand this and use it to inform our work. By unravelling what motivates people, our financial capability programmes create lasting behaviour change. Improving New Zealanders’ ability to manage their money across a lifetime gives individuals greater financial certainty and freedom. It helps to reduce hardship among families, creates resilient communities and a more prosperous and productive economy. We recognise financial capability as an essential life skill for all New Zealanders.

What does being financially capable mean?


The National Strategy for Financial Capability envisions everyone getting ahead financially. That includes everyone saving and investing, managing debt to their advantage, having a current financial plan, being prepared for the unexpected, learning about financial capability and being comfortable talking about money.

Why is financial capability important?


New Zealand is experiencing an unprecedented demographic change with an ageing population. Migration, fertility and mortality rates are shifting our population’s age structure, ethnic mix and dependency ratio – the number of workers to those of retirement age is declining.

Increasing demands on the public purse mean New Zealanders need the ability to provide for themselves more than ever before.

New Zealand society is also experiencing changing social norms on how much we buy and consume, and the way we view debt. Technology and easy access to high-interest credit have made debt easier to acquire.

When today's demands drown out tomorrow's thoughts, CFFC cuts through the noise to inspire New Zealanders to focus on their financial wellbeing, providing the tools and knowledge to help them carve out a healthy financial future.

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