Financial Knowledge and Remittances Study Final Survey 1. Last month did you use a newspaper, website or other source of information to compare the costs of sending money overseas? Yes go to Question 2 No go to Question 3 2. What sources of information did you use last month to compare costs and features of methods of sending money overseas? (mark as many as apply). Friends and other informal sources Newspaper, published articles or advertisements Radio or television Internet Other (please specify) 3. How many times did you send a remittance during the last two months? Zero Question 7 Twice Once Three or more times 4. Please provide details on the FIRST remittance you sent in the last two months: Amount (including any fees you paid) Method of sending the money Destination country Type of recipient (e.g Parent, Sibling, Church, Temple) How much local currency (e.g. Pa'anga, Rupee, RMB) do you think they got? 5. Please provide details on the SECOND remittance you sent in the last two months: Amount (including any fees you paid) Method of sending the money Destination country Type of recipient (e.g Parent, Sibling, Church, Temple) How much local currency (e.g. Pa'anga, Rupee, RMB) do you think they got? 6. Please provide details on the THIRD remittance you sent in the last two months: Amount (including any fees you paid) Method of sending the money Destination country Type of recipient (e.g Parent, Sibling, Church, Temple) How much local currency (e.g. Pa'anga, Rupee, RMB) do you think they got? Page 1
7. Have you sent more than one remittance to the same person within the last six months? Yes No Question 9 8. If you have sent more than one remittance to the same person within the last six months, why didn't you send it all as one transaction? (Tick all options below that apply) I was unexpectedly asked for money on more than one occasion during this period I was worried that if I sent the total all in one go, the receiver wouldn't be able to save it until they needed it I had to wait until I had earned enough to send It was cheaper or just the same cost to send it like this in smaller amounts rather than all in one go 9. What is the name of the remittance method, that in your opinion, is the cheapest way of sending $200 to someone in the overseas country that you remit to most often? IF YOU NEVER SEND REMITTANCES PLEASE SKIP TO QUESTION 14 10. Did you use the method you think is cheapest, the last time you sent a remittance transfer? Yes Question 12 No 11. What is the MAIN reason why you did not use the method that you think is cheapest, the last time you sent a remittance transfer? The method I used is more convenient for me The method I used is more convenient for the receiver The method I used gets the money there faster than the cheapest method I don't know how to use the method I think is cheapest The savings in using the cheapest method aren't big enough to make it worth switching from something I know I trust the method I use more than other methods Other (please specify) 12. On average it costs about $20 $25 to make a typical remittance transaction of sending $200 $300 overseas. By how much would the cost per transaction have to be lowered for you to switch to using a different method of sending money? Amount by which cost per transaction needs lowered: $ Page 2
13. If you saved $100 per year by paying lower fees for sending remittances, how much of this extra money would you spend on each of the following: Sending more money to the remittance receiver Household spending needs Donations to church or other organizations Leisure spending Paying off debt Other 14. How likely is it that you will be sending remittances in the future? In the following boxes please give the percent chance (on a scale from 0 to 100) that you will send money overseas in: One Year's Time: Five Year's Time: Ten Year's Time: 15. In the last two months, have you applied for any of the following? Yes No A pay day loan A hire purchase loan A credit card The Westpac Express Prepaid Card A bank overdraft Any other type of loan or credit 16. For each of the following statements tick the circle that most closely reflects YOUR current views about banks and money. Strongly Neither agree Strongly Agree Disgree agree nor disagree disagree I feel welcome in a bank I would feel comfortable asking a bank employee for financial advice Banks don't want to do business with people like me I prefer to use an ATM than go to the bank teller I always keep track of how much money I spend each month I am confident in my ability to manage money Page 3
17. Consider a time of the year when your household finances are tightest (e.g. at the start of the school year, or Christmas, perhaps). Suppose a major household item like your TV or fridge breaks and needs replacement. How would you finance it? Credit card Payday loan Hire purchase Bank overdraft Personal savings Loan from family and friends 18. Financial actions taken in 2011: Have you taken any of the following financial actions in 2011? (tick all that apply) Paid off a debt Started keeping a household budget Re financed a loan at a lower interest rate Opened a retirement saving account Changed the method used to send remittances Started saving for other future needs (e.g children's education) Changed the frequency with which you remit money Increased the amount of debt you owe Increased the amount of money you send as remittances Reduced the amount of debt you owe Decreased the amount of money you send as remittances Purchased life insurance Page 4
Your Financial Understanding 19. Suppose you want to send $200 to someone overseas. Which would cost you more, sending it all at once as $200, or sending it at two different times of $100 each time, or is the cost the same either way? Cheapest to send $200 all at once The same cost either way Cheapest to send $100 two times I don't know 20. When a remittance is made by sending money to someone overseas, what are the various costs that the bank or money transfer operators charge? Yes No Don't Know A fixed fee imposed on the sender A fixed fee imposed on the recipient An exchange rate commission An interest rate charge 21. Which do you think would give you more money in two years time: Receiving $1200 in two years time, or putting $1000 in a bank account today, and leaving it there for two years along with the 10% annual interest earnings that are added to the account each year. Receiving $1200 in two years time Both would give the same Putting $1000 in an account with 10% annual interest Don't know 22. A consumer takes out a payday loan for $100 which has a $15 fee. After 2 weeks, the consumer pays back the full $115. What do you think is the annual percentage rate (APR) charged on this loan? (select one option below) 15% 315% 115% 390% 23. In your opinion, which type of loan or credit will generally have the HIGHEST annual interest rate? Credit card Hire purchase Payday loan Page 5
24. In your opinion, which one of the following credit card users is likely to pay the GREATEST dollar amount in finance charges per year, if they all charge the same amount per year on their cards? Ann, who pays at least the minimum amount each month and more, when she has the money Bridget, who only pays the minimum amount each month Jane, who always pays off her credit card bill in full shortly after she receives it Sarah, who generally pays off her credit card in full but, occasionally, will pay the minimum when she is short of cash * 25. Unique Code/Identifier: Thank you very much for taking the time to complete this survey and for participating in the overall study. The information that you have provided is very useful to us, and we appreciate very much your help. We hope the findings of this research will help inform the Government in making policies to better serve your financial needs. Page 6