FYI.

This story is over 5 years old.

Money

What Young New Zealanders Would Spend Their Free Money On

The Opportunities Party wants to give all 18 to 23-year-olds $200 a week, no questions asked.

In the pre-election scramble for media oxygen, New Zealand's political parties are dropping policies all over the place. The Opportunities Party's (TOP) announcement that it intended to provide young adults aged between 18 and 23 with $200 every week did exactly what it was intended to do: cut through and get the country talking about a different economic model.

TOP, and leader Gareth Morgan, are proponents of the Unconditional Basic Income (UBI), and this was the third announcement pertaining to it, following earlier policies aimed at babies and the elderly. The weekly $200 would replace existing benefits, including the student allowance, which currently tops out at $177.03 after tax. It would mean an extra $10,000 a year for those eligible, and would cost the country $3.39 billion per annum, which Morgan says he would fund by cancelling National's tax cuts. "This is a revolution," Morgan says. "We are saying that people in an affluent society are owed the ability to live their life with dignity."

Advertisement

VICE wanted to know what those affected by the policy made of it, so we hit the streets of Auckland to find out.

Nathan Lee, Jared Malvgrin, Danny Song, Luke Roberts (from left), all 18

Would you want that money?
Jared: Ew, that sounds like communism.

Luke: I guess I'd save it to pay off my loan or things like New Years. I think most people would use it on things like alcohol or travel.

Do you think it'd affect our general mental health as young people?
Luke: I think it could go 50/50 eh. I think there'd be some kids who'd use it really well and then others that would absolutely waste it.

So are you saying none of you would want it?
Luke: Nah, we'd all want it. I mean it's free money. It'd probably have a lot of negative effects though. I feel like it'll put kids off of trying to get jobs. Like we don't really need it as such but like, I'll take it. I mean if it actually happened it's not like I'm gonna say no. It'd help with traveling too and also our debt after Uni. Maybe it'll help take the pressure off of constantly thinking about a career too. It'd de-stress people definitely because you'd actually have a little pocket cash. It's just a matter of what people would be spending it on. I mean like down in Otago.. it'd be a different story.

Christina McDonald, 22

What do you think about the policy? Would it change your lifestyle?
I think it would make life a lot easier for me because I'm only getting 170 bucks through student loan anyway. So this is stuff I'm going to have to pay back eventually. I guess it'd be good to have that money coming into my account without worrying about how I'm going to have to pay it back.

How would you spend it, specifically?
I don't know. I'd probably continue to spend it the way I've been spending my money anyway. On things like car bills and petrol costs. I'd probably still put some of it away.

Advertisement

Do you think it'd affect your financial situation after the benefit years?
Part of me would probably panic if I'd had it for a long period of time and then just didn't have it anymore. I know this is an attempt to stop mental health issues but it might cause some to not have the benefit anymore. Just later in life. I'd probably prefer it was given to me in my time of need than given to me over a particular period of time. There might be people in great situations getting that money where it could be used for people who need it more.

Hamish Jamandas, 18

How would you use that money?
I'd probably give it to my parents because they're building a house right now and I'm still living at home.

Will you move out of home while you're in Uni?
I won't move out until I graduate when I'm 22.

You'd have a year of the benefit left. Do you think it'd be beneficial to you after uni?
Yeah, definitely. I'd pay off some student loan. Probably spend some of it recklessly, too.

What do you mean by recklessly?
Just like random purchases. Like maybe clothing. Or save to go overseas if the Government won't ask you what you're doing with the money.

Do you think it'd affect your mental health having this money in this age bracket?
Not mine personally. Because I'm not in a place where my mental health is in a negative state. But for people who are, it might benefit them.

Ryan Eastown, 21

What would you do with that money?
Being at university I would use it in my day-to-day, like parking, petrol, food. That's probably where the majority of it would go.

Do you think it'd have continued effects on your financial situation later in life?
Yeah, I think it would. I have to have a part-time job but I guess if I was being given that money, too, I could save it for later. Maybe I'd use some of it for disposable purposes—you know like buy clothes. It's hard to say that it would all go towards uni things because it wouldn't be being monitored.

Advertisement

Do you reckon this policy would affect the mental health of young people?
I think that's a hard question to answer. Mental health issues aren't necessarily related to money problems. I could understand there being some kind of correlation and then if there was a correlation I could see it lessening that. Overall, I'm not sure. Like, potentially.

Charlotte Seto, 21

Do you think an extra $200 a week would change your lifestyle very much?
Yeah, I think it'd change the way you eat, specifically. Because I know that's a large element of not only physical health but also mental. Also the cost of living in Auckland is so high that if you had an extra $200 to put toward actually eating well I think it would affect your lifestyle.

Do you think the money would have continued effect on you once it's discontinued?
Well after I finish my degree at around 23 I will be making a living wage so I shouldn't be depending on a supplement. So, yeah, until then I do see how it could be helpful. If it was being subsidised from other funds like pensions or something though I wouldn't want it because as a young, able person I am much more physically able to work. If funds are going to be reassigned for that then it definitely shouldn't come from any vulnerable populations. Students have a lot more resources around for them than I think they realise already. Plus, you can already get money from the Government if you really are in need. But yeah, it would be really helpful.

Advertisement

Horim Choy, 18

What do you think about getting the $200?
Is this on top of student loan? I'd probably just chuck it into my savings account then maybe use it to pay off my loan.

So it wouldn't really affect your spending lifestyle in your university years?
It probably would if I wasn't getting student allowance. But I am and I'll be over 23 when I finish. I'm living in a hall and so I guess the extra money could go to those expenses.

Adrian Holland, 20

How would you spend your money?
I'd spend that money on tuition and fees and everything. I think it'd help because you wouldn't have to spend time worrying about getting jobs and covering everything. I know that with my parents, their university was completely covered by the Government. I think that was an amazing policy they used to have. It shouldn't have been discontinued.

Would you spend any of it on entertainment?
Yeah, like eating out or going to concerts.

Could you see any potential issues if everyone within that age range gets the $200?
Yeah. I think the money would be better spent if it was for university students. Just because if it goes to everyone it could be a bit of a disincentive to go to university or try to become a productive member of society.

Additional reporting by Hannah Bates.