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I'm travelling to New Zealand for one month's vacation and the New Zealand Immigration site has:

You must have at least NZ $1,000 for each month of your stay, or if you’ve already paid for your accommodation, NZ $400 for each month of your stay.

You may be asked for evidence you’ll have access to your funds when you check-in or arrive in New Zealand.

  1. What kind of evidence would they accept?
  2. If there are two of us traveling, do we each need evidence of NZ$1,000? (I'm thinking if we used cash as evidence).
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    Small warning, cash is never safe to travel with, pick-pockets and luggage thieves, and just the risk of misplacing it yourself. Border officials know this and will not insist on cash. Traveler cheques are more safe but a nuisance to get your money, besides being quite expensive in use. Best is to keep the money in your bank and bring statements and a credit card with a use limit over the minimum requirement. – Willeke Jan 29 '17 at 10:06
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What kind of evidence would they accept?

You seem to have decided on cash already. Frankly I don't know but given that NZ is no more specific than what you quote then cash would seem reasonable, or its near equivalent of travellers cheques. In addition I would expect a current, original bank statement showing a balance of at least the equivalent of NZ $1,000 should be acceptable, based on precedent for financial evidence requested by some visa issuing authorities.

If there are two of us traveling, do we each need evidence of NZ$1000? (I'm think if we used cash as evidence)

Yes. Such requirements are always per head unless there is specific mention otherwise (which I think there never is).

Related.

Backpackerboard has:

Evidence of funds can be in the form of traveller’s cheques, bank draft, letters of credit or a bank statement in your name. Cash or credit cards may be accepted as evidence of funds.

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Elsewhere on their website, and explicitly on the Visitor Visa information page when reporting particular citizenships or residencies, Immigration NZ provides a list of types of satisfactory evidence, which "can include"

  • proof of accommodation pre-payment, like hotel pre-paid vouchers or receipts

  • bank statements

  • credit card statements

  • bank drafts

  • travellers’ cheques

  • a 'Sponsorship Form for Temporary Entry' completed by an acceptable sponsor.

The page continues to describe evidence a sponsor can give, which varies to include

  • recent bank statements

  • pay slips

  • employment agreement

  • accommodation ownership or payment of rent.

It should be noted that cash is a reasonable evidence of funds, but for security reasons, carrying such amounts is discouraged.

In effect, you need to show that you can cover costs to the amount required without much delay by either having the funds immediately to hand or, in the case of your accommodation, having already paid for it.

These requirements are stated per person, so if you are planning for a group, you must multiply the amount stated by the length of your trip measured in months by the number of people going on the trip.

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