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

1. The Sorted Kiwi. The Effect of Identity on the Achievement of Financial Well Being in New Zealand Robyn Dupuis 2009 Ian Axford Fellow

2. Factors Affecting One’s “Sortedness” Income Age Ethnicity Gender Availability of Trustworthy and Advantageous Financial Products Financial Knowledge Attitudes about Financial Management, Habits, Normalization of Behaviors among Family/Friends, Experience with Economic Events, Life Shocks, Existence of Support Networks…and Identity

3. The Identity Effect Asian- American Women Experiment & Others How ‘Who You Are’ Impacts ‘What You Do and Achieve’ Using Identity to Improve Outcomes What if there is no Choice between Identities? What if there is only ONE group identity available to ‘work with’?

4. Using Identity Strengths to Improve Outcomes Hypothesis: The outcomes of the salience of a group identity may be improved by highlighting and making more salient the underlying components of that identity which have norms supportive of the desired behaviour and performance.

5. The Identity-Component Salience Model Vision – Goal to Achieve New Zealanders are Sorted Identify Desired Behaviour Sorted-Supportive Financial Management Target Population All New Zealanders Population’s Common ‘Group Identity’ ‘Kiwi’ identity Components of Group Identity Explore Behaviour Relationships Values, Folk Ideals, etc. Group Identity Stereotypes Related to Behaviour/Performance Make Salient Supportive Identity Components Show how identity supports Behavior Evaluate Desired Behaviour Adoption & Progress of Vision Achievement Normalisation of Behaviour Identity & underlying components support desired attitudes and behaviours Vision – Goal is Achieved

6. Applied to New Zealand Financial Well Being Vision: Financial Well Being for New Zealanders Target population of “All New Zealanders” Target Group Identity: “Folk ‘Kiwi’ identity” Q: How can highlighting sorted-supportive components of the broadly appreciated folk ‘Kiwi’ identity shift overall financial management stereotypes associated with ‘being Kiwi’ in a positive direction to promote increased normalization of sorted behaviours and ultimately the achievement of the Retirement Commission’s vision: “New Zealanders are Financially Sorted”?

7. Strength of a Group Identity-Based Approach An identity component-based approach may shift the current perception of: “Through hard work, change, and sacrifice I can be sorted”, to: “As a Kiwi, being sorted is part of who I am.” More likely to normalize behaviour in a sustainable way. Social Confirmation disseminates ‘group identity’ based messages broadly

8. Execution of the ModelMaking ‘the Sorted Kiwi’ Salient What does “being Kiwi” say about New Zealanders abilities and inclinations to “be Sorted”? What are the common stereotypes? Which ‘Kiwi’ Identity Components are ‘Sorted-Supportive’? How can ‘Sorted-Supportive’ Components Be Made Salient?

9. Q: 1 What are the ‘Kiwi’ IdentitySorted-Related Stereotypes? There is room for improvement in terms of what ‘being Kiwi’ means to New Zealanders about their abilities, inclinations and likelihood to achieve financial well-being.

10. Financial Management:Not ‘Sweet As’ Financial Management… Does not fit with ideal ‘Kiwi’ life. Money is not supposed to be a priority. "Oh! But he was a tight-fisted hand at the grind-stone, Scrooge! a squeezing, wrenching, grasping,scraping, clutching, covetous, old sinner! Hard andsharp as flint, from which no steel had ever struck out generous fire; secret, and self-contained, and solitary as an oyster..."  - A Christmas Carol

11. Money is Grubby. Historic economic events result in negative perceptions about money Anti-Capitalist, Anti-Profit Sentiments Big Business = Bad Dodgy/Shady Impressions Bernard “Bernie” Madoff

12. Massively Difficult/Impossible Financial Management: Requires Expert Help Complicated Someone’s Day Job Impossible - There isn’t enough money to save and it’s not worth worrying about Being financially sorted and still being able to have fun are not compatible.

13. Government will Provide For some, this is true For others – New Zealand just not a scary place Stereotype Origins: NZ Super Other Social Welfare Supports

14. Kiwis are “Bad Savers” Savings not “flash” “No culture of saving” “Why bother?” Kiwis are ‘unsophisticated’, not money savvy and risk averse Stereotype/Myth Origins: “Can’t save”, Instability of Retirement Policies = futility, “She’ll Be Right” Philosophy, Government Supports NZ Government Financial Services Industry Is the ‘Bad Saver’ myth True?

15. Q2: The Kiwiana EffectA ‘Sorted Supportive’ Identity What components of the ‘Kiwi’ identity, if highlighted and made more salient might contribute to a more positive ‘Kiwi’ identity –effect on financial performance?

16. ‘Kiwi’ Identity Components What are called ‘Pioneering’ Characteristics Quality of Life Priority (vs. $ accumulation focus) Tall Poppy Syndrome She’ll Be Right attitude The Good Generous Kiwi Bloke Number 8 Wire & DIY Culture Punching Above our Weight

17. Key Components (cont.) ‘Don’t Tell Me What to do, Mate!’ attitude Love of Land & ‘Go Outside & Play’ ethos Value Shifts Youth – Decreased independence? Increased consumerism? Effect of financial crisis? Different Values among different groups – age, ethnicities, education, income…

18. Benefits of being“Last in the World” ‘Short History’ = Perseverance of Strong Pioneering Values Practical/Pragmatic Sensible/Grounded/ Down to Earth Stoic/Strong Determined/Tenacious Responsible Sense of national identity quite consistent Some people began to suggest that the tough conditions of the New Zealand frontier and the ‘bracing climate’ of the country were character forming. Some people began to suggest that the tough conditions of the New Zealand frontier and the ‘bracing climate’ of the country were character forming. - Te Ara (1874 Sheep Farmers Camp)

19. “Quality of Life Priority” “The Price of Living in Paradise” Kiwi ‘Ideal’ expectations about what is important doesn’t require a preoccupation with money. Quality of Life values are ‘down to Earth’ and sorted-supportive

20. Tall Poppy Syndrome Aversion to ostentation thwarts flash consumption Thwarts entrepreneurship? & holds people back? Stimies ‘money talk’? “We don’t care for loud, colourful flourishes of wealth.”

21. She’ll Be Right Is there any worth in worry? A Rule of Thumb Capitalizing on the positive confidence of “She’ll Be Right” “I’ll get along better if I don’t worry…sometimes I think worrying is a waste of time”

22. Number 8 Fencing Wire & DIY“The feeling that we can put it together in the back shed and it will come out right” Kiwi Ingenuity. Adaptable, self-reliant, resourceful, make-do, naturally talented. Kiwis want to manage their own money. Strengths: make do sensibilities admired, confidence to do things themselves John Britten’s Motorcycle

23. Go Outside & Play, Love of Land, Kiwis Save through Homes. Love of Land & Outdoors Key Value Homeownership & Property Ethos

24. Accountants Wear Shoes How Financial Management fits with ‘Go Outside and Play’ High ‘cost’ Kiwi-ize Financial Management

25. Q: 3 How can ‘Sorted-Supportive’ Components Be Made Salient? Capitalize on Identity-Strengths to promote the idea of ‘The Sorted Kiwi.’ Test the ‘Kiwi Identity’ Salience Effect on Financial Behavior and Performance Test the ‘component’ Salience Effect on Financial Behavior and Performance

26. Note: Retirement Commission Philosophy Retirement Commission has a ‘Sorted Kiwi’ philosophy: If given appropriate financial management information, New Zealanders will act rationally and responsibly to achieve financial well-being. Could “tell” people ‘why’ in a more obvious way. An identity approach would benefit from others in NZ having more confidence in Kiwi abilities.

27. Identity-Component Salience Model – 5 Strategies Identity Based Strategies to Promote Benefits or Threats Highlight Identity Components Supportive of Behaviour Positive, strength-based messages Identity Based Strategies to Lower Perceived Cost Unique Identity Based Messages i.e. appeal to unique key ideals, national pride, etc. “Highlight & Prove” Identity – Behavior Connection Positive messages & success-demonstrating information Use Identity “Ideal” Representations Use People, Places and Things that are reflective of key values

28. “Highlight” & “Prove” Identity Strengths Define ‘Saving’ in a ‘New Zealand, Inc.’ Way Combat the ‘Bad Saver’ Myth Prove ‘Sorted Kiwi’ connection Kiwis are Too Sensible for Problematic Debt Highlight ‘Practical & Sensible’ Financial Management Strategies (vs. “debt averse”) Promote ‘For the Greater Good’ Entrepreneurial Enthusiasm

29. Identity-Based Benefits & Threats Keep identity in mind with ‘benefits’ and ‘threats’ approach ‘Lifestyles of the Rich and Famous’ not likely to resonate. NZ not a scary place - No Lions, Tigers and Bears.

30. Lower Perceived Cost Kiwi-ize Financial Management – show how financial management can fit within the ‘ideal’ Kiwi life and can be: Easy Fun – or at least not horrid Quick Integrated into the ideal Kiwi lifestyle Work with Financial Institutions to make basic financial management ‘easy’

31. Use ‘Ideal’ Messengers Use popular messengers who epitomize the Kiwi ideal (or images) All Blacks, other sports figures Great outdoors, active lifestyles People who have put NZ on the map, exhibited strength of will, independence, and self-assurance, etc…

32. Unique Identity Components Small country ‘pride’ – “small, but perfect” First in the world – Nationalistic – KiwiBank Punching above weight, tall poppy, quality of life priority, No. 8 wire… key identity components in which Kiwis take price

33. Sum Up – Thoughts Highlight Key Appreciated S.S. Components/Characteristics of which Kiwis are Proud Highlight History of Sorted Behaviours – No She’ll Be Right attitude about finances First in the World to be Sorted? Sorted as a Tool for Clever Kiwis

34. Questions & What’s Next