Money Week a reminder to save for future

New Plymouth investment advisers are stressing the importance of financial education as New Zealand's first annual Money Week kicks off.

Run by the Commission for Financial Literacy and Retirement Income - the team responsible for Sorted - Money Week is a week- long celebration of financial education activities.

Money Week, which started yesterday, is designed to raise awareness of how people can better manage their money and get help on financial matters.

New Plymouth financial advisers Shelley Wade and Chrissy Egarr, who joined Craigs Investment Partners earlier this year, said they put an emphasis on educating the public about smart investment practices.

"Investing doesn't have to be scary and if you plan well and start early and diversify you are going to have good long-term results," Wade said.

Egarr said safe and measured investing was the best way to yield results.

"Boring investing is pretty much the best type of investing," Egarr said.

There was still a lot of work to be done around educating people about saving, particularly with regards to preparing for retirement, she said.

Part of their role at Craigs was to demystify questions people have about that process, she said.

Wade's view was that everyone should start saving as soon as they get a paid job, even if it's just $10 a week.

"Small amounts regularly will pay off," Wade said.

"The power of compounding interest is very significant," Egarr said.

While this year's Money Week caught them a bit off guard, next year they would look at running more events.

"We're going to make sure we take the bull by the horns next year and let people know about it," Wade said.

"Just getting people talking about it is a starting point."

In future they wanted to hold women's wealth seminars in Taranaki and Egarr was looking at delivering a school financial education programme.

New Plymouth authorised financial adviser Peter Hensley said he was a big supporter of Money Week.

He had just finished delivering a six-week community financial education course teaching people about saving and how to prepare for retirement, he said.

There was often a lack of understanding among people about the investment choices available to them and associated risks, he said.

"You have to encourage investors to understand the risk associated with trying to squeeze a bit more interest or return from their money."

The Hawera budget office will be offering free information packs on budgeting and advisers will be available from 9.30am to 1.30pm to answer questions. Westpac also encourages people to become involved in their free money management workshops.

Taranaki Daily News