Originally published: September 2023. Updated: May 2025 to reflect current economic conditions and tools.

With interest rates staying high and the cost of living still climbing, there's no better time than now to give your finances a 2025-ready health check. Here’s an updated seven-step guide to help Kiwis manage their money and build long-term financial resilience. 

1. Budgeting Tips for NZ Families

Inflation may be slowing, but its impact still lingers in everyday costs. Budgeting isn’t just a good habit anymore: it’s essential for New Zealand households.

A smart budget gives you control over your money, helping you prioritise spending, build savings, and weather financial shocks. If you haven’t updated your budget recently, now’s the time. We recommend following My Money Coach’s step-by-step process - it’s easy, practical, and effective.

2025 Tip: Set up automatic transfers to savings right after payday. It’s the simplest way to prioritise your goals before life gets in the way.

2. KiwiSaver Contribution Advice for 2025

Just signing up for KiwiSaver isn’t enough. With changing market conditions and life goals, your KiwiSaver settings may be due for a tune-up.

Ask yourself:

• Am I in the right fund type for my goals?
• Will my KiwiSaver balance cover the retirement lifestyle I want, or help me buy my first home?
• Could adjusting my contribution rate make a difference?

Use Kōura's digital tools to assess your KiwiSaver plan, forecast your future balance, and make changes that work for you.

2025 Tip: Consider whether your current KiwiSaver plan aligns with your risk appetite in a high-inflation, high-interest environment.

3. How Much Emergency Fund Do Kiwis Need?

New research shows that more than 1 in 3 New Zealanders still have less than $1,000 saved for emergencies, meaning they’re just one surprise bill away from debt.

While saving is harder than ever, even a small emergency fund can be life-changing. Aim for at least 1-2 months’ worth of essential expenses, stored somewhere safe and accessible (like a high-interest savings account or flexible term deposit).

2025 Tip: Look for bank accounts offering 4.5–5.5% interest to make your emergency fund work a little harder while staying liquid.

4. Review Your Mortgage NZ 2025 

Mortgage rates in New Zealand have steadied in recent months, but they’re still sitting well above the ultra-low levels we saw before 2022. If your fixed rate is coming up for renewal, take a proactive look at your options.

Consider:

• New fixed vs floating rates
• Term length that suits your income stability
• Whether you can afford to make lump sum repayments

Speaking with a mortgage adviser can help you build a strategy that balances flexibility and cost.

2025 Tip: Don’t wait until your fixed term ends. Reviewing your mortgage 3-6 months early gives you time to compare rates, plan your strategy, and avoid last-minute pressure.

5. Should You Save or Pay Off Debt? 

It’s a question many Kiwis face: should I keep money in savings, or use it to pay off debt?

Here’s the basic comparison:

• Credit Card Debt can cost you 15-20% per year
• Mortgage interest might cost you 5-8%
• Savings accounts usually earn just 3-5.5%

So, while it's great to have a savings buffer, you'll often save more money in the long run by paying off high-interest debt first. 

2025 Tip: If you have extra savings and any debt like a mortgage or credit card, plug your numbers into a debt vs savings calculator. It’s the easiest way to take the guesswork out of what’s best for your money.

6. Audit Your Household Bills in NZ

Small switches can bring big savings. Comparing your power, broadband, and insurance providers annually is one of the easiest ways to trim unnecessary spending.

Use:

• Powerswitch for power
• Broadband Compare for internet
• Review subscription services and cancel unused ones

2025 Tip: Redirect your savings into your KiwiSaver or emergency fund to make these wins work harder.

7. Talk About Your Financial Check-Up

Money is still one of the most taboo topics, but talking about it creates accountability and clarity.

Whether it’s with a partner, friend, or financial adviser, discussing your goals, debts, and habits helps align priorities and reduce stress. You don’t have to have all the answers - but starting the conversation is a powerful step.

2025 Tip: Use monthly budget catchups or goal check-ins to stay on the same page with your partner or household.