We all want the best for our children, nieces, nephews, and young people we care about. Watching them grow from toddlers to teens to independent adults is one of life’s greatest joys, but it’s no secret that the journey can be expensive. While we wouldn’t trade the experience for anything, there’s a fine balance between giving them a great start and protecting our own financial wellbeing.
So how do we support their future without putting undue pressure on our own finances? Depending on the age of your young ones, we have a simple strategy across the ages. These small steps don’t require deep pockets, and they’ll ease the financial pressure on you later on too.
👶 Under 5s
We can all get caught up buying endless toys, which are fun for a while, but then break or get passed on. Instead, consider starting a “parent and grandparent fund.”
Open a savings account and invite loved ones to contribute a small monthly amount. Over time, this can grow into a meaningful fund for school costs, a laptop, or even university fees. If you’re able, set up a KiwiSaver account for them and put in some money each month, for a powerful head start towards their first home.
🧒 Ages 10–14
Kids at this age crave independence. Channel that energy by encouraging small chores for pocket money. Let them help set the rates, to teach negotiation, build a good savings habit, and understand the value of effort. They’ll begin to understand that money doesn’t just “appear,” and that their time and skills have worth. In the years ahead, they’ll be grateful they began early and had the freedom to make thoughtful spending choices.
👦 Ages 14–16
Now’s the time to support their first job. Maybe dishwashing at a café or helping a neighbour with gardening. These experiences build confidence, teach workplace etiquette, and help them understand employment basics like contracts and pay. Early work experience also boosts their chances of landing jobs after school or uni. The’ll also love the ‘pay rise’ from their previous pocket money!
🧑 Over 16s
Before they leave school, help them master the basics of money management. Help them set up two bank accounts for themselves: one for spending, one for saving. Encourage goals like keeping a few hundred dollars in the spending account as a buffer, and to transfer a small amount to savings each month. Teach them to compare interest rates and understand compound growth. If they want a credit card, and you believe they are ready for one, start with a low limit and stress the importance of paying it off monthly.
💡 The Long View
These small steps may seem modest now, but they compound over time. By the time your young person is ready to leave home, they’ll be equipped with financial confidence, discipline, and a sense of independence, all without compromising your own financial future.
Let’s raise financially savvy young adults, together.
The New Zealand Anglican Church Pension Board trading as Anglican Financial Care is the manager and issuer of Christian KiwiSaver Scheme, The Retire Fund and The New Zealand Anglican Church Pension Fund. Product Disclosure Statements and Fund Updates are available on the Documents page of the AFC website (Pension Fund and The Retire Fund) and https://christiankiwisaver.nz/documents/ (Christian KiwiSaver Scheme).
