New findings from Kiwibank’s 2026 State of Savings Index, now in its third year, show saving remains challenging and budgeting and saving habits are holding steady.
Kiwibank Chief Executive Steve Jurkovich says: “Three years of research shows that despite ongoing financial pressures, Kiwi continue to budget, save and find ways to make progress, from cutting spending to trying new tools.
“One of the interesting insights this year is around the usage of AI and open banking, particularly for younger Kiwi. As awareness of open banking increases, more Kiwi will unlock new ways to track spending, build savings and improve their financial wellbeing.”
Kiwi are saying that the cost of living, particularly the monthly grocery bill, is the biggest barrier to savings, with some taking on debt such as Buy Now Pay Later or loans from family and friends to help.
The research also shows some groups face greater pressure than others, and Māori, Pacific Peoples, renters and women are more likely to say they struggle to save.
The findings highlight the importance of the systems and products that help Kiwi to save. For example, only half of respondents said they were aware that savings accounts often require specific conditions to be met so they can earn the headline interest rate.
“When Kiwi are working hard to budget and save, they shouldn’t have to jump through hoops and hurdles to get the best value. Savings products should be simple, transparent and designed around how Kiwi actually manage their money.
“Banking should not feel like something you have to work around. It should be something that helps you move forward.”
The research found:
- Of those experiencing saving challenges (61%), 74% cited cost of living as their biggest saving barrier.
- Of the 59% of Kiwi that have a budget, 85% of them broadly stick to it (1 point up on last year), and those regularly saving now (44%).
- 39% made deliberate changes to improve savings, such as reducing discretionary spending (28%), changing grocery shopping habits (14%) and cancelling subscriptions (10%).
- 40% have taken on debt to cover increased living costs with Buy Now Pay Later (19%) and loans from friends or family (12%) being the most common.
- Kiwi say the best savings accounts offer competitive interest rates (52%), no fees or conditions (37%), and flexible access to their money (33%).
- 52% have some understanding of open banking with 42% seeing it as relevant to them.
- 12% have used AI for budgeting and savings advice, with 64% of those finding it helpful.
Table 1. Over three years, budgeting and regular saving are consistent
|
Measure |
2024 |
2025 |
2026 |
|
Monthly budget |
59% |
60% |
59% |
|
Regularly save |
41% |
43% |
44% |
|
Save from time to time |
38% |
37% |
37% |
|
Have a specific savings goal |
35% |
51% |
43% |
|
Cost of living biggest barrier* |
73% |
69% |
74% |
|
Can cover an unexpected $500 expense |
67% |
68% |
68% |
* For those who say it’s challenging to put money aside (63% in 2024, 63% in 2025 and 61% in 2026)