Published: 21st Sep 2026
Last Updated: 21st Sep 2026
Author: Murray Greig, Founder of Loansmart
When you’re in your late teens, 20s, or early 30s, retirement can feel a long way off and financial planning may not seem like a priority.
However, the habits you build early often have the biggest impact on your long-term financial future. The good news is that getting your finances on track doesn’t require a high income or expert knowledge. In many cases, it comes down to putting a few simple foundations in place.
If you’re a young Kiwi looking to build financial confidence, here are the key areas worth focusing on.
Build a Strong Foundation
Before you think about investing, buying a home, or building wealth, it’s important to understand your current financial position.
Start by creating a basic budget. This doesn’t need to be complicated. Simply understanding how much money is coming in and where it’s going each month can provide valuable clarity.
Tracking your spending is equally important. Many people are surprised when they review their transactions and see how much they’re spending in certain areas.
Finally, set some financial goals. Whether it’s saving for a car, building an emergency fund, travelling overseas, or buying your first home, having a goal gives your money a purpose.
Start Building Savings Early
One of the most valuable financial habits you can develop is saving regularly.
You don’t need to save hundreds of dollars every week to make progress. Even small amounts can add up over time when you’re consistent.
An emergency fund should be one of your first priorities. Unexpected expenses are part of life, and having money set aside can help you avoid relying on credit cards, buy now, pay later services, or personal loans when things go wrong.
A good starting point is to build enough savings to cover a few unexpected expenses and then gradually increase your emergency fund over time.
Understand Debt Before You Need It
Many young adults don’t think much about debt until they apply for finance or a credit card.
Understanding how debt works before you need it can help you avoid costly mistakes.
Take time to learn how interest works, how repayments are calculated, and what happens when balances are carried over month after month.
It’s also worth understanding your credit report. Your repayment history can affect your ability to access finance in the future, so building good habits early is important.
Most importantly, try to avoid taking on unnecessary debt for purchases that lose value quickly or aren’t essential.
Make the Most of KiwiSaver
KiwiSaver is one of the most powerful long-term savings tools available to New Zealanders.
If you’re employed, make sure you’re enrolled and understand how contributions work.
Many young people don’t realise that employers are generally required to contribute to KiwiSaver as well, which can significantly boost retirement savings over time.
It’s also worth reviewing your KiwiSaver fund choice. The right fund for someone in their 20s may be very different from the right fund for someone approaching retirement.
A quick review today could make a meaningful difference in the future.
Understand Your Protection Options
Insurance isn’t always the most exciting financial topic, but it’s an important one.
Many young people assume they don’t need insurance because they’re healthy or don’t own significant assets.
However, unexpected events can happen at any age.
It’s worth understanding the basics of health insurance, contents insurance, vehicle insurance, and income protection insurance so you can make informed decisions about what level of cover is right for your situation.
It’s also important to understand what ACC does and doesn’t cover. While ACC provides valuable support for accidental injuries, it doesn’t cover every situation that may affect your income or financial wellbeing.
Start Thinking About the Future
You don’t need to have your entire life mapped out, but it’s worth thinking about some of your longer-term goals.
Homeownership may feel a long way off, but understanding how deposits, lending, and KiwiSaver withdrawals work can help you prepare.
Learning some basic investing concepts is also worthwhile.
Understanding topics such as risk, diversification, and long-term investing can help you make more informed financial decisions in the future.
Most importantly, focus on building good habits now. The earlier you start, the more time those habits have to work in your favour.
Financial Success Starts With Good Habits
Financial success isn’t about becoming wealthy overnight.
More often, it’s the result of small, consistent actions repeated over many years.
Creating a budget, building savings, understanding debt, contributing to KiwiSaver, and setting financial goals may seem simple, but these habits can provide a strong foundation for the future.
The best time to build good financial habits is before you need them.
Whether you’re saving for your first home, planning for the future, or simply looking to improve your financial position, taking small steps today can make a big difference tomorrow.
And when the time comes to explore lending options for a vehicle, home renovation, debt consolidation, or another major financial goal, Loansmart can help you understand your options and find a solution that works for your situation.
Financial Checklist
Use this checklist as a quick way to see where you’re tracking well and where there may be opportunities to improve.
