the sorted kiwi. the effect of identity on the achievement of financial well being in new zealand...

The Sorted Kiwi.The Effect of Identity on the

Achievement of Financial Well Being in New Zealand

Robyn Dupuis2009 Ian Axford Fellow

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

The Identity EffectAsian- 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’?

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.

Vision – Goal to AchieveNew Zealanders are Sorted

Target PopulationAll New Zealanders

Identify Desired BehaviourSorted-Supportive Financial Management

Group Identity Stereotypes Related to Behaviour/Performance

Components of Group Identity Explore Behaviour Relationships

Values, Folk Ideals, etc.

Make Salient Supportive Identity Components

Show how identity supports Behavior

Evaluate Desired Behaviour Adoption & Progress of Vision Achievement

Normalisation of BehaviourIdentity & underlying components

support desired attitudes and behaviours

Vision – Goal is Achieved

The Identity-Component Salience Model

Population’s Common ‘Group Identity’ ‘Kiwi’ identity

Applied to New Zealand Financial Well Being

Vision: Financial Well Being for New ZealandersTarget 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”?

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

Execution of the ModelMaking ‘the Sorted Kiwi’ Salient

1. What does “being Kiwi” say about New Zealanders abilities and inclinations to “be Sorted”? What are the common stereotypes?

2. Which ‘Kiwi’ Identity Components are ‘Sorted-Supportive’?

3. How can ‘Sorted-Supportive’ Components Be Made Salient?

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.

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

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

Massively Difficult/ImpossibleFinancial 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.

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

Kiwis are “Bad Savers”• Savings not “flash”• “No culture of saving”• “Why bother?”• Kiwis are ‘unsophisticated’, not

money savvy and risk averseStereotype/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?

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?

‘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

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…

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)

“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

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.”

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”

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

Go Outside & Play, Love of Land, Kiwis Save through Homes.

• Love of Land & Outdoors Key Value

• Homeownership & Property Ethos

Accountants Wear Shoes

• How Financial Management fits with ‘Go Outside and Play’

• High ‘cost’• Kiwi-ize Financial

Management

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

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.

Identity-Component Salience Model – 5 Strategies

Identity Based Strategies to Lower

Perceived Cost

Highlight Identity Components Supportive of Behaviour

Positive, strength-based messages

Use Identity “Ideal” Representations

Use People, Places and Things that are reflective of key values

“Highlight & Prove” Identity – Behavior

ConnectionPositive messages & success-

demonstrating information

Identity BasedStrategies to Promote

Benefits or ThreatsUnique Identity Based Messages

i.e. appeal to unique key ideals, national

pride, etc.

“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

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.

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’

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…

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

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

Questions & What’s Next