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    The development of a complementary financial capability index : a thesis presented in partial fulfilment of the requirements for the degree of Doctorate of Philosophy in Finance at Massey University, Manawatu, New Zealand
    (Massey University, 2024-06-11) Wedlock, Meg
    Achieving behaviour change only through improved financial knowledge levels is difficult when taking into account other factors which influence an individual’s decision-making such as psychological factors, financial attitudes, and socio-demographic influencers. A deeper understanding of the relationship between psychological factors and financial capability levels provides educators and policymakers valuable insights to generate progression. Psychological biases are often innate, meaning individuals are usually not aware of the influence they may have on financial decisions. Education programmes which educate individuals on psychological influences as well as improving financial knowledge may collectively generate confidence and self-efficacy in one’s decision-making abilities. Therefore, a better understanding of financial decision-making is a critical investment in the social capital of society both today and in the future. Financial capability is an important behavioural element which contributes to the development of financial wellbeing at the individual and household level, as well as improving economic stability. Consequently, financial capability remains high on the priority list for governments seeking to improve retirement wellbeing and reduce reliance on debt funding and government funded benefits, thereby improving financial stability. This research seeks to investigate the influence of psychological factors on financial decision-making, providing findings which confirm the relationship between psychological factors and financial capability levels. Within a New Zealand context, this thesis proposes a complementary financial capability index developed in support of the financial wellbeing conceptual model developed by Kempson and Poppe (2018) and to further strengthen existing behavioural finance models. The complementary financial capability index is developed using data from the Australia and New Zealand Banking Group, and particularly focuses on incorporating measures of time orientation, self-control, locus of control, impulsivity, social status, and action orientation. Results of this study confirm the statistical significance of psychological factors independent of financial behaviour when measuring financial capability levels. The robustness of the proposed complementary financial capability index is tested on two different datasets under variable conditions. Significant results in both applications highlight the sensitivity of the index to changes in data inputs, while also confirming the ability of the model to produce financial capability scores despite changes in data inputs. To further investigate the relationship between psychological factors and financial decision-making and to understand the factors which influence financial behaviour in practice, a mixed methods study was undertaken on fourteen participants. The collection of survey data enables further applicability testing of the complementary financial capability index while thematic analysis of the one-on-one interview transcripts results in six key behavioural finance themes which further support the research objectives addressed in this thesis and provides valuable practical insights supporting existing behavioural finance literature. This investigation confirms the significance of psychological factors on financial capability levels, over and above what may be captured by traditional factors such as financial knowledge and financial behaviour. The findings of this thesis inform policymakers and education providers on the elements of the financial decision-making process that can be targeted to generate progression in the financial capability levels and consequent financial wellbeing of New Zealanders.
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    Framing the financially literate subject : an analysis of financial literacy discourse in New Zealand : a dissertation presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in English at Massey University, Palmerston North, Manawatū, New Zealand
    (Massey University, 2022) Chapelle, Peri
    The purpose of this study is to analyse the discursive framing of the financially literate subject and their needs within New Zealand. The first part of the study identifies and traces key themes within the framing of the financially literate subject, using documents derived from OECD publications and NZ governmental institutions. Working with the critical conjunction of rhetorical analysis and critical discourse analysis informed in part by the work of Foucault, the role of financial literacy in contemporary New Zealand society is addressed through analysis of a case study based on a public debate in New Zealand about the ethics of investment in munitions by providers of the government-supported pension plan, KiwiSaver. The first part of the thesis puts KiwiSaver in a broader policy context by examining documents from the OECD that were influential in setting the framework, rationale and approach for the New Zealand government’s initiatives to restructure pension plans and encourage a change in the population’s savings habits and citizens’ grasp of financial principles. As it happened, the introduction of KiwiSaver in 2007 coincided with the onset of the global financial crisis, which saw a shift in the framing of the validation of the financially literate subject from a saving imperative to a need to manage individual risks and protect the market. These capabilities of managing risk and protecting the market, depicted as inherent to financially literate populations, manifest through the expectation that all those who participate in the market would preserve it through informal regulation based on informed consumer choice. The second part of the thesis presents a case study of public reaction to the media exposé of a financial scandal that broke in August 2016 when it was discovered that KiwiSaver funds were being invested in companies manufacturing illegal munitions. Through analysis of selected newspaper articles and Twitter commentary, the thesis emphasises the complexity of the relationship between the expectations of financial literacy on the part of the government, OECD and financial sector, versus the realities of the financial marketplace. In tension with the emphasis on individual responsibility within official and institutional discourses of financial literacy, the exchanges via Twitter reveal the desire for, and partial practice of, a more civic-focused, collective way of interacting via the financial markets. The case study serves to illustrate the apparatuses of power operating in the field of financial literacy. Analysing the discursive production of the financially literate subject and the imperative rhetoric surrounding financial literacy will provide a fuller understanding of the construction and conceptualisation of the financially literate subject, the social power relations inherent in the drive towards improved financial literacy, and the strategic goals being pursued. Ultimately, the thesis will contribute to our understanding of financial literacy as an ideological framework.