Tips to start saving
If you’ve got something you want to save up for – a trip, a car, a wedding or a fancy new TV – put a plan in place to make it happen. Take a look at your spending habits, set some goals and start saving for the future you want.
Tips for financial peace of mind
Building up a financial buffer can stop you from having to dip into debt if life throws you a curve ball. Putting aside money to help you cope with hard times or unexpected expenses is a big step on the road to financial peace of mind.
Tips to get you on the road (or in the air)
Whether you’re heading off on a holiday of a lifetime, or you’re chasing some winter sun, you need to budget for your trip and plan how you’re going to pay for things while you’re away.
Make sure you’re secure
The first thing you need to do is make sure that helping out your kids isn’t going to leave you in a financial lurch. Get independent financial advice before you commit to any major decisions and always make sure you understand what you’re signing up for and the potential consequences.
For example, guaranteeing a loan means that you'll be responsible for repayments if your children default on their payments. You might think ‘my child would never do that’ but it does happen – life has a habit of throwing curve balls, whether it’s job loss, illness or just bad luck, so make sure you consider how you’d cope with worst-case scenarios.
Teach them young
If your children are still young, then lay the groundwork while they’re still little and think you’re the fountain of all knowledge. Talk about money when you’re shopping or paying the bills and encourage them to save for stuff they want.
Most of all, set a good example. Your children will listen to what you’re saying, but they also watch what you’re doing. You could tell them all the right things they should be doing, but undo all that good work if you’re not being careful with your own money. Our Online Call account can help children save with no transaction fees and good returns.
Save for the future
If you’ve got young children and are able to put aside money for them, then look at setting up savings accounts, term deposits, a KiwiSaver account or even a Managed Fund in their name. If your child has access to these accounts and you want control over what happens to the money, you could set up a two to sign authorisation on every account withdrawal made. This means you'll need to approve any withdrawal from the account. Alternatively you can open these in your name, other than a KiwiSaver account. For more information about setting up savings accounts for your child, get in touch or visit your nearest branch.
Term Deposits could be a good option, with options to lock in competitive interest rates anywhere from 30 days to five years. Notice Saver is another possibility, if you’re after competitive interest rates and don’t need immediate access to your money. Read more about savings accounts and term deposits.
Managed Funds could also be worth looking at, and they’re not nearly as daunting as you might think. With Kiwi Wealth Managed Funds, you can start investing with as little as $100 and make further contributions of any amount you choose. These contributions can be one-offs, or you can set up regular payments.
With Kiwi Wealth you can open an account on behalf of your child, in their name, in which case once they turn 18, they’ll have authority over the account and can make withdrawals when they like. Or you can open an account in your name, in which case you’ll always be in charge of what happens to the money. Find out more at kiwiwealth.co.nz.
Living at home
To help your children transition into adulthood, you could encourage them to stay at home while they're studying or saving for a house. You could have a chat with them about what it may be like flatting and the expenses they may face.
You can also help them choose the best bank accounts for their age and stage.
Onto the property ladder
If you want to help your children into their first home, there are a few ways you could go about it. You might set up a KiwiSaver account for your child, which they could access for their deposit. You could also gift or lend them a deposit (or part of a deposit), guarantee their loan, or, if you have an investment property, you could use some of the equity you’ve built up in that property.
If you do want to help them out, talk to one of our home loan specialists about your options. It’s also important that you get independent advice, so you know exactly what you’re getting into and whether it’s the right option for you.
Create a financially comfortable retirement
New Zealand has a universal retirement pension that's paid to eligible Kiwis when they reach 65. While the pension provides a safety net, if you’re wanting a few creature comforts in your dotage, then you’ll have to save up a nest egg to supplement these payments.
How much you'll need
The amount of money you need to save to be comfortable in retirement will vary from person to person – what lifestyle you want, where you live, if you rent or own your home and if you’re single or coupled up. Although there’s no set magic number to work towards, there are ballpark figures out there to give you an idea.
One way to help build up healthy retirement savings is KiwiSaver, a voluntary, work-based savings initiative. With KiwiSaver, your money is usually locked in until you turn 65, the idea is that you won’t be tempted to dip into it for things other than retirement.
If you don’t want to have all of your money locked in until you’re 65, you can also save and invest outside of KiwiSaver. If you like the idea of a steady, reliable way to grow your savings, then consider Term Deposits. You can enjoy a fixed return on terms ranging from 30 days to five years. Your money is locked in for a set amount of time and your interest rate is fixed for that period.
Open & manage an investment
Whether you’re a seasoned pro, or a new investor, we’ve got savings accounts, term deposits and investment options to suit your financial goals.
Planning for future wealth podcast
Simran Kaur, Founder of Girls that Invest, is on a journey to empower women globally with financial literacy. Get a glimpse into the motivation, mindset and resilience of this remarkable wahine and learn from her wisdom and experience to help improve your own financial health. Listen to her full story on Spotify or Apple Podcasts.