Setting your children up for financial success

Parents want the best for their children, including a strong financial start. While the future is uncertain, the right tools today can set them up for long-term success.

There’s no magic formula for securing your child’s future, but there are a few powerful steps you can take now that will pay off later.

Protecting them starts with protecting yourself

Making sure you have the right health and life insurance or income protection in place for yourself means your family stays secure – no matter what life throws your way.

Kickstart their KiwiSaver early

Thanks to recent changes in the Government Budget, your children can now receive government contributions to their KiwiSaver accounts from age 16. That means their savings could grow faster than ever.

Let’s put it into perspective: if they start contributing at 16 and stick to it regularly, by the time they turn 25 they could have up to $30,000 saved.* That’s a huge leg-up when it comes to buying a first home, or simply building a financial buffer for their retirement.

But if they choose not to withdraw those funds for a first home and leave their KiwiSaver untouched until retirement at 65, their balance could grow to more than $500,000 (Te Ara Ahunga Ora Retirement Commission).

That’s the power of time, compound interest, and consistent contributions, all starting with a small decision today.

Check their insurance coverage

Did you know health cover for your child ends when they turn 21 if they’re on your policy? If they don’t move to their own policy in time, they could lose cover for things like pre-existing conditions.

Continuing their coverage with their own policy keeps their cover going without any gaps. It’s an easy way to make sure they stay protected as they step into adulthood.

Support independence with the right cover

As your children grow older and become more financially independent, it’s time for them to have their own insurance policies – such as health insurance, income protection and life insurance. Having cover in place means they’re safeguarding their future, even as they venture out on their own.

The bottom line?

The earlier you act, the better their future looks. Whether it’s setting up KiwiSaver, reviewing insurance, or simply having the right conversations, it all starts now.

Complete the form below to book a free KiwiSaver or Insurance review with one of our friendly financial advisers, and you’ll go in the draw to WIN a $250 Prezzy card.* A brighter financial future for your family and a chance to win? That’s a win-win.

*Terms and conditions apply.