Family advice on your finances might seem free, but could cost you far more in the long run. File photo Photo: 123rf.com
Relying on family for advice is contributing to high financial fear, with more than a quarter of New Zealanders concerned their financial position is out of their control, according to a new survey.
The survey by Fidelity Life indicates more than half (53 percent) of people under 35 were always worried about money, with a majority (55 percent) not feeling confident about their financial decisions until they reach 55 years.
Fewer women (28 percent) than men (44 percent) feel confident about their financial outlook, with a reliance on amateur advice affecting their emotional wellbeing.
"Despite this, we're continuing to go to family rather than professionals for financial advice, failing to recognise money missteps throughout our lives which can have a significant impact on our overall wealth," Fidelity Life chief executive Campbell Mitchell said.
"Evidence shows most New Zealanders aren't seeking financial help, either through regular financial health checks or at key life stages, until they're nearing retirement - when it may be too late."
While the research indicated nearly nine out of 10 (88 percent) thought financial advisers were the most trustworthy source of financial information, just 22 percent had consulted one, while 36 percent sought help from family.
Almost a third (31 percent) of those who had not consulted a professional adviser said they did not see the relevance of advice, and 29 percent preferred to manage their own money.
"As a result of seeking amateur advice, we get stuck in the same old ways of doing things and can't see a way forward - especially when the people we most often turn to for advice, our parents, have experienced different conditions," Mitchell said.
"Baby Boomers who have achieved financial success via the traditional route of buying a home and an investment property may consider themselves financially savvy, without taking into account the fact they've lived through one of the greatest property booms in our history, and that as the world changes, a different approach might work better today."
Mitchell said financial education was essential, particularly for younger people.