Home › Answers › Guides and learning
Guides and learning questions, answered
Questions answered in the written guides, from budgeting and KiwiSaver to household spending and employment agreements.
Every answer below is taken from the calculator or guide that works the number out, and each heading links back to it so you can put your own figures in. Nothing here is advice, and where a rate or threshold applies the page that owns the answer holds the current figure.
No question on this page matches that. Try a shorter word, or search every answer on the site.
Financial Literacy Test NZ
Is the Financial Literacy Test free?
Yes. It is completely free, with no sign-up, account or paywall. You can take it as many times as you like.
What topics does the test cover?
Property and mortgages, tax and income, KiwiSaver and retirement, investing, banking and money, insurance, income and work, debt and credit, business and self-employment, consumer rights and safety, personal finance and budgeting, and everyday life costs.
Is the test specific to New Zealand?
Yes. Every question is written for New Zealand and uses local rules, such as KiwiSaver, Inland Revenue tax rates, ACC, the Residential Tenancies Act and Reserve Bank lending limits.
Do I find out why an answer is right or wrong?
Yes. When you answer, the test shows whether you were right, reveals the correct answer, and explains why in plain English, with a link to the full learning guide that covers the topic.
What is a good financial literacy score?
On this test, 60 percent or more means you are financially capable, 75 percent or more financially confident, and 90 percent or more a money expert. For context, in international studies fewer than a third of adults correctly answer the three basic questions on interest, inflation and risk.
What NZ Households Actually Spend
How much does the average New Zealand household spend each week?
Adding the thirteen top-level categories of the Stats NZ Household Economic Survey gives about $1,597.50 a week for the average household in the 2023 survey. It is an average rather than a typical household, and it includes saving as well as spending.
Is the average the same as what a typical household spends?
No. An average is pulled upward by a small number of households spending a great deal, so the typical household usually spends less than the average. The survey publishes averages, not medians.
Why does the average rent figure look so low?
Because it is averaged over every household, including the majority who own and pay no rent. Restricted to households that actually make rent payments, the 2023 figure is about $448.80 a week rather than $144.80.
What does sampling error mean on these figures?
It is the margin of uncertainty that comes from surveying a sample rather than every household, published as a percentage of the figure. A large sampling error means the true value could be well above or below the number shown.
How often is the Household Economic Survey run?
Every three years. The most recent is the 2023 survey, and the ones before it were 2019, 2016, 2013, 2010 and 2007.
How to Read Suburb Housing Figures
Is a statistical area the same as a suburb?
No. A statistical area 2 is a Census geography holding roughly 2,000 to 4,000 people, drawn for statistical purposes rather than to match how people name places. Sometimes it matches a suburb, often it splits one in two or covers several. Treating it as a suburb boundary is the most common way these figures get misread.
Why can I not divide median rent by median household income?
They are measured over different populations. Median weekly rent covers households in rented dwellings only; median household income covers all households in the area, including those who own outright. Dividing one by the other produces a ratio for a group of people who do not exist.
What is random rounding to base three?
Stats NZ randomly rounds Census counts to a multiple of three to protect the privacy of people in small areas. It means components need not add exactly to their stated total, and that a count of 3 in a small area might really be 1, 2, 3, 4 or 5. It matters most where the numbers are smallest.
Does the Census record what people pay on their mortgage?
No. The Census asks renting households what rent they pay, but does not ask owning households what their mortgage costs. There is therefore no median mortgage payment for any New Zealand area, and no single housing cost figure covering everyone who lives there.
Why do some areas have no figures at all?
Because they have too few households for a figure to mean anything, or none at all. Many statistical areas are harbours, inlets, offshore islands or stretches of water. Areas under 100 households are not published on this site for that reason.
Automatic Payments vs Direct Debits
What is the difference between an automatic payment and a direct debit?
You set up and control an automatic payment (a fixed amount on a set date); a direct debit lets the biller pull varying amounts, which you authorise.
Which is safer, an automatic payment or a direct debit?
An automatic payment gives you more control over the amount and timing; a direct debit is convenient for variable bills but the biller controls the amount taken.
Can I cancel an automatic payment or direct debit?
Yes. You can cancel an automatic payment through your bank, and a direct debit too, though you should also tell the biller.
When should I use a direct debit?
For bills that change each period, like power or phone, where the biller charges the actual amount due.
Recognising and Avoiding Scams
How can I tell if something is a scam?
Watch for urgency, unexpected contact, requests for passwords or one-time codes, and demands to move money to a "safe account" or pay by gift card.
What should I do if I am scammed?
Contact your bank immediately, change affected passwords, report it to the authorities, and warn others. Acting fast gives the best chance of recovery.
Will my bank ask me to move money to a safe account?
No. No genuine bank will ask you to transfer money to a "safe account". That request is always a scam.
Should I share a verification code sent to my phone?
Never. A one-time code is a key to your account, and no legitimate organisation will ask you to read it out.
Credit Card Balance Transfers
What is a credit card balance transfer?
Moving an existing credit card balance to a new card with a low or 0% interest rate for a set period, so you can pay it down faster.
Do balance transfers have fees?
Often yes, a one-off percentage of the balance transferred, which you should weigh against the interest you would save.
What happens when the balance transfer period ends?
Any remaining balance reverts to the card's standard interest rate, which is usually high, so aim to clear it within the low-rate window.
Are balance transfers a good idea?
They can save interest if you have a clear plan to pay off the balance before the offer ends and you avoid new spending on the card.
Bank Account Security and 2FA
How do I keep my bank account secure?
Use a strong, unique password and two-factor authentication, never share passwords or one-time codes, and be wary of unexpected links or calls.
What is two-factor authentication?
A second step beyond your password, such as a code sent to your phone, that makes your account much harder to break into.
Is it safe to do banking on public Wi-Fi?
Avoid it where possible. Use mobile data or a trusted network, since public Wi-Fi can be insecure.
What do I do if my account is compromised?
Contact your bank immediately to freeze access, change your passwords, and report the incident.
Banking Hardship Support
What is banking hardship support?
Banks are required to consider hardship applications, which can pause or reduce loan repayments while you get back on your feet.
How do I apply for bank hardship?
Contact your bank early, before you miss payments, and explain your situation; they will assess options like reduced or paused repayments.
Does a hardship arrangement affect my credit?
Arrangements can be recorded, but acting early and keeping to an agreed plan is far better for your credit than missed payments.
What if my bank declines hardship?
You can escalate through the bank's complaints process and then the Banking Ombudsman, and seek free financial mentoring for help.
Buy Now Pay Later - Hidden Risks Explained - NZ
How does Buy Now Pay Later work?
You receive goods now and repay in interest-free instalments over a few weeks, with fees if you miss a payment.
Is Buy Now Pay Later free?
It is interest-free if you pay on time, but late fees apply if you miss instalments, and several plans at once can add up.
Does Buy Now Pay Later affect my credit?
It can, depending on the provider, and missed payments or defaults may be recorded. Treat it like any other debt.
What are the risks of Buy Now Pay Later?
It is easy to overcommit across several purchases, and late fees and the habit of spreading payments can let debt build up.
Bonds and Fixed Income
What is a bond?
A bond is a loan you make to a government or company that pays regular interest and returns the principal at maturity.
How do bonds differ from shares?
Bonds pay fixed interest and rank ahead of shares if a company fails, so they are generally lower risk and lower return than shares.
Why do bond prices fall when interest rates rise?
Existing bonds paying older, lower rates become less attractive than new higher-rate bonds, so their market price falls.
Are bonds safe?
Government bonds are low-risk; corporate bonds carry more risk depending on the issuer. All bonds still carry interest-rate and inflation risk.
Chattels: What Stays With the House in NZ
What are chattels in a New Zealand property sale?
Chattels are the movable items sold with the property, listed in a schedule on the sale and purchase agreement. Typical entries are the stove, dishwasher, rangehood, fixed floor coverings, curtains, blinds, light fittings, heat pumps, the burglar alarm and the garage door opener with its remotes. If an item is listed it goes with the house; if it is not, the seller keeps it.
Do chattels have to be working at settlement?
Yes. The seller warrants that included chattels, and the systems and devices delivering services to the property, will be in reasonable working order at settlement, allowing for fair wear and tear since the agreement was signed. Something that breaks between signing and settlement is the seller's to repair, and this is the most common settlement-day dispute.
What is the difference between a fixture and a chattel?
A fixture is attached to the property and passes with it automatically. A chattel is movable and passes only if it is listed in the schedule. The boundary can be unclear for things like garden sheds, so the practical answer is to list or exclude explicitly rather than rely on the distinction.
What happens if a listed chattel is missing at the pre-settlement inspection?
It usually becomes a holdback: the parties' lawyers agree an amount to retain from the settlement funds until the item is replaced or repaired, and settlement proceeds. It is resolvable, but it lands on the busiest day of the transaction and typically concerns an item worth far less than the trouble it causes.
Disability Allowance Explained
What is the Disability Allowance?
A weekly payment that helps with regular, ongoing extra costs caused by a disability or health condition, such as doctor visits, prescriptions, travel to treatment or extra heating, up to a weekly maximum.
Do I have to be on a benefit to get the Disability Allowance?
No. You can receive it if you are on a benefit, on NZ Super, or a low-income earner, as long as your income is under the limit and you have ongoing disability costs.
What costs does the Disability Allowance cover?
Regular, ongoing costs arising from a disability, such as doctor and prescription costs, travel to medical appointments, counselling, special food or clothing, and similar verified expenses.
Is the Disability Allowance income tested?
Yes. There is an income limit, which varies with your family situation, and you must have a health practitioner confirm your ongoing disability costs.
Debt-to-Income Ratio Guide
What is a debt-to-income (DTI) ratio?
Your total borrowing as a multiple of your gross annual income. The Reserve Bank uses DTI limits to cap higher-risk mortgage lending.
What are the DTI limits in New Zealand?
The limits cap most owner-occupier and investor lending at a set multiple of income, with a small speed-limit allowance for loans above the cap.
How is DTI calculated?
Total debt divided by gross income. For example, $600,000 of lending on $100,000 of income is a DTI of 6.
Do DTI limits apply to everyone?
They apply to most new mortgage lending, with some exemptions such as new builds, and a limited share of higher-DTI loans is still allowed.
What Earnings Look Like Across a Career in NZ
At what age do earnings peak in New Zealand?
In the 2024 tax year, median annual earnings from wages and salaries peaked in the 45 to 49 age band, at $74,520. The curve rises steeply through the twenties and early thirties, flattens through the forties and fifties, and falls after sixty as people reduce hours and begin to retire.
Why are median earnings for teenagers so low?
The median for 15 to 19 year olds was $13,410, which looks impossible against any wage. It is not an hourly rate: it is the median of total annual earnings for everyone in the band with any wage income at all, and most people in it worked a few hours a week for part of the year while studying. It measures how much was earned, not what work pays.
Is this data averages or medians?
Medians. Half of earners in a band received more than the figure and half less. A median is not pulled upward by a small number of very high earners the way an average is, which makes it the better yardstick for asking whether your own pay is typical.
Where do these figures come from?
Stats NZ's Linked Employer-Employee Data, which is built from tax records rather than surveys, published for every tax year since 2000, split by age band, sex, region and income source. Because it comes from tax data it covers essentially everyone who earned, not a sample.
How Much You Need to Retire in NZ
How much money do I need to retire in New Zealand?
It depends on the lifestyle you want and whether you own your home. NZ Super provides a base, and most people top it up with KiwiSaver and savings; retirement guidelines publish target lump sums for different lifestyles.
Does NZ Super cover retirement on its own?
NZ Super covers the basics but is modest. Most people want additional savings, such as KiwiSaver, for a more comfortable retirement.
How long does my retirement money need to last?
Potentially 25 to 30 years or more, so the goal is drawing down savings at a sustainable rate while keeping some invested to outpace rising prices.
When can I access my KiwiSaver for retirement?
From age 65, when KiwiSaver unlocks. You can withdraw lump sums, set up regular withdrawals, or leave it invested to keep growing.
Marketing Your Home for Sale in NZ
Who pays for marketing when selling a house in New Zealand?
The seller, in almost all cases. Vendor-paid advertising is the New Zealand norm: the campaign cost is agreed in the agency agreement and is usually payable whether or not the property sells. Some agencies will contribute or defer it, which is a negotiable point before you sign.
How much should I spend marketing my house?
There is no reliable national figure, and any single number quoted without a source should be treated carefully. What you can do is break the package into its parts, portal listing, photography, signage, print and staging, and price each one against what it does. Portal listings and photography carry most of the effect for most campaigns.
Can I sell privately and still list on the main property portals?
Yes, though not always directly. The main portals are structured around agency membership, so private sellers typically use a private sale listing service or a portal's private seller option where one is offered. The photography and the listing itself matter more than which route you take to get there.
Is staging worth it when selling?
It depends on the property. Staging tends to earn its cost where a house is empty, where the existing furniture dates the rooms, or where the layout is hard to read without furniture. In an already well-presented occupied home the return is much smaller, and cleaning and decluttering will do most of the same work for far less.
Pricing Your Home to Sell in NZ
Should I list with the agent who gives the highest appraisal?
Not on the number alone. An appraisal is an opinion produced while competing for your listing, and it binds nobody. The industry term for winning an appointment with an inflated figure and working the price down later is buying the listing. Ask each agent for the recent comparable sales behind their number, and compare the evidence rather than the figures.
What is the difference between an appraisal and a registered valuation?
An appraisal is a licensed agent's opinion of likely selling price, usually free and usually given while seeking your listing. A registered valuation is an independent assessment by a registered valuer, produced for a fee and often commissioned by a lender. They serve different purposes and can give quite different numbers.
Is the rateable value a good guide to what my house is worth?
No. Rateable values are mass-assessed on a revaluation cycle to apportion council rates across a district. They are not produced to price an individual property on a particular day, and the gap between a rateable value and a market price can be large in either direction.
How long should I wait before reducing the price?
The market usually tells you within about three weeks, through behaviour rather than feedback. Plenty of online views but few viewings suggests presentation or price; no views at all suggests the price has put you in the wrong search bracket. Waiting costs you carrying costs every week, so early correction is generally cheaper than a long hold.
How to Read Census Housing Data Without Getting It Wrong
Can I divide an area's median rent by its median income?
No, and this is the single most common error made with Census housing data. Median rent is measured over households in rented dwellings; median household income is measured over ALL households, owners included. The two figures stand on different populations, so their ratio describes nobody. A rent-to-income ratio needs renters' incomes, which the area tables do not provide.
Why do Census counts not add up to their totals?
Every count is randomly rounded to base three before publication, to protect individuals. A total of 552 households splitting into 348 plus 147 plus 57 both is and is not consistent: each figure was rounded independently. Differences of a few from any sum are the rounding, not an error, and small counts carry proportionally large uncertainty.
Is a statistical area the same as a suburb?
No. A statistical area 2 is a Census geography of roughly two to four thousand people, drawn for statistical convenience. Sometimes it matches a suburb people would name; often it splits one or bundles several. Figures for an SA2 describe the area around a place, not a place with edges anybody agrees on.
What is a median mortgage payment in my area?
The Census cannot tell you, because it does not ask owning households what they pay. This is the largest silence in the housing data: rent is collected, mortgage payments are not. Anyone quoting a Census mortgage figure for an area has confused it with another source, and estimating one honestly requires a mortgage calculator and current rates, not the Census.
Settlement Day for Sellers in NZ
What happens on settlement day when selling a house in New Zealand?
The buyer's lawyer transfers the settlement funds to your lawyer's trust account, your mortgage is repaid and discharged, rates and any levies are apportioned between the parties, the balance is paid to you, and the title transfer is registered electronically with Land Information New Zealand. Keys are released to the buyer once settlement is confirmed.
Do I have to allow a pre-settlement inspection?
Yes, unless the property is being sold with a tenancy in place. The buyer is entitled to inspect the property before settlement to confirm it is in the same condition as when the agreement was signed and that the listed chattels are present and in working order. It is not an opportunity to renegotiate the price.
What does vacant possession mean for a seller?
The property must be empty of people and of your belongings and available for the buyer to occupy on settlement day. That includes clearing rubbish, the garage and the garden shed, leaving the property clean and tidy, and handing over all keys, remotes and alarm codes. It does not apply where the property is sold with a tenancy.
What happens if settlement is late?
Late settlement generally triggers interest on the unpaid balance at the rate specified in the agreement, running for the period of the delay, and the same principle applies whichever side causes it. Most delays are resolved the same day. Persistent failure can lead to a settlement notice and ultimately to cancellation, so tell your lawyer immediately if the date is at risk.
How Term Deposits Actually Work - New Zealand
How does a term deposit work?
You lock a sum with a bank for a fixed term at a fixed interest rate, earning more than an everyday account in return for not touching it.
Are term deposits taxed?
Yes. Interest is taxable and resident withholding tax (RWT) is deducted at your nominated rate before you receive it.
Can I withdraw a term deposit early?
Usually only with notice, and often at a reduced interest rate or with a break fee, since the point is that the money is committed.
Are term deposits safe?
They are low-risk with a fixed return, though that return may not keep pace with inflation over long periods.
What It Actually Costs to Live in New Zealand
How much does it cost to live in New Zealand per week?
From the 2023 Household Economic Survey, average weekly spending across comparably published categories was about $817.70 for a one person household, $1,527.80 for two people, and $2,194.60 for a four person household. These are averages across all such households, pulled up by high spenders, at 2023 prices.
What is the biggest cost of living in NZ?
Housing and household utilities: the largest single category for the average household, and also the one that varies most between people, because it depends on whether a household rents, pays a mortgage, or owns outright. Food and transport are the next largest, and together the top three take roughly half of household spending.
Why do these figures differ from cost-of-living numbers in the news?
Most quoted figures are either a single-person budget built from assumed prices, or an inflation rate, which measures change rather than level. These are measured averages of what real households actually spent, from Stats NZ's survey, which makes them lower-drama and more useful: they include the households that economise as well as the ones that do not.
How should I use these figures on my own budget?
Compare line by line for your household size, not total against total, and treat the average as the upper side of normal rather than the middle. The budget calculator shows the benchmark for your size, region and tenure beside each line you enter, which corrects the biggest weaknesses of a raw comparison.
What NZ Households Actually Spend on Food
What does the average NZ household spend on food a week?
About $299.50 a week in the 2023 Household Economic Survey, across groceries, eating out, takeaways and everything else classed as food. That is an average across all households, pulled up by big spenders, so a typical household spends somewhat less.
How much of the food budget is eating out and takeaways?
Restaurant meals and ready-to-eat food take about 29 per cent of the average food budget. Grocery food is about $139.40 a week of the $299.50 total, which is why a supermarket-only comparison understates what food really costs a household.
Has food spending really gone up, or is it just inflation?
Both, and the survey lets you separate them. Cash spending rose from $163.00 a week in 2007 to $299.50 in 2023. Adjusted into today's money, the 2007 figure is about $284.16, so real food spending moved far less than the cash figures suggest: most of the rise is prices, not appetite.
Where can I see a single food line, like meat or coffee?
Every food subcategory Stats NZ publishes has its own page in the household spending section, with what it covers, what it excludes and the history back to 2007, so a single line of a budget can be checked against the measured national figure.
What Households in Your Income Decile Spend
How much do low and high income households spend in NZ?
On the 2023 survey's comparable categories, average weekly spending runs about $678.90 in a lower income group, $1,081.00 in the middle, and $1,794.30 near the top: the top spends roughly 2.6 times the bottom. Income groups here are tenths of households ranked by household income, unadjusted for how many people the income supports.
What scales with income and what does not?
The surprise is how uniformly everything scales: food rises about 2.6 times from a low to a high income group, nearly matching the 2.6 times of total spending, because raw income deciles bundle household size with income and bigger households eat more. Recreation and transport scale fastest. The flattening of necessities that people expect appears per person, not per household, while essentials still take a far larger share of smaller incomes because incomes spread several-fold more than essential spending does.
Am I normal for my income?
The honest comparison needs one correction first: the deciles rank raw household income, so a single earner and a family of five can sit in the same decile while living completely different lives. Compare your spending lines against your decile with your household size in mind, and treat a big gap as a question to investigate rather than a verdict.
Where do these figures come from?
The Stats NZ Household Economic Survey, 2023, which records actual spending across thousands of households and publishes it by income group, household size, region and tenure. Every category has its own page in this site's household spending section.
Answers are gathered from the calculators and guides listed above and are general information, not advice. Last reviewed 2026-09-06. See also the finance glossary, the guides and the reference data.