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

Prepared by Robyn Dupuis | July 2009
with funding from the sponsors of the Ian Axford (New Zealand) Fellowships in Public Policy

Robyn Dupuis is a Policy Research Analyst for the Washington State House of Representatives where she conducts research and advises members on public policy matters particularly in the housing, finance and local government arenas. She was previously the Institutional Development Director for a Community Action Agency and a Habitat for Humanity affiliate. During Robyn's Ian Axford Fellowship exchange to New Zealand she was based at the Retirement Commission in Wellington, where she researched the influence of identity on financial behaviours.

Abstract

The field of behavioural economics suggests that utilizing what is known about how 'real people' make financial decisions can augment financial education initiatives and contribute to increased financial well being amongst a population. The effect of the behavioural norms and implied assumptions associated with different group identity categories with which a person associates on a person's financial behaviour and performance is a key emerging area of interest.

This paper describes how an identity-based strategy can identify and make more salient the specific components of a group's identity that are most likely to be supportive of positive financial behaviours and outcomes to improve the overall effect of a person's identity on their level of financial well being. Qualitative findings of this research, which utilizes the well-recognized folk 'Kiwi' identity as an example, suggest that making salient the components of the 'Kiwi' identity which are most aligned with positive financial behaviours and performance (the most 'Sorted-supportive' components) may result in increased 'normalization' of desirable financial behaviours and may empower New Zealanders to achieve financial well being by increasing their sense that 'being Sorted' is simply part of 'being Kiwi.'

Table of contents

Acknowledgments
Executive Summary
Preface
Introduction

1. What are the broad systemic environmental factors causing mates 'to worry', and how well are Kiwis sorted?
   
2. What factors affect a person's likelihood to be sorted and what factors can be effected?
   
3. How can advantageous identity-salience and identity-component salience further the vision: New Zealanders are financially sorted?
   
4. What does 'being Kiwi' say now about New Zealander's abilities and inclinations to 'get sorted? What are the most common financial management stereotypes related to the 'Kiwi' identity and where did they come from?
   
5. The Kiwiana effect: What components of the 'Kiwi' identity suggest associated 'sorted-supportive' behavioural norms?
   
6. How can the Retirement Commission highlight and capitalise on 'sorted supportive' elements of the 'Kiwi' identity to promote the vision: New Zealanders are financially sorted?

Conclusion
Appendices
Bibliography

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