Set your family up for the future
There are plenty of easy ways you can ensure your family is financially prepared for the future.
From good financial habits, to setting up long-term saving schemes, or even helping your kids onto the property ladder - these are all simple ways for you to help others.
Encourage good financial habits
Instilling good money habits in your kids now will help them in the future, as effective budgeting and saving behaviours will be familiar to them as they grow up. You could:
- provide an incentive by contributing $1 for every $2 they save
- teach them budgeting and savings habits from a young age, and demonstrate them yourself
- share stories about saving experiences, such as saving for your first home.
Get your kids into KiwiSaver
Setting your kids up with a long-term savings scheme, like KiwiSaver, makes great financial sense. Even better, you can apply for an account for your child before they even celebrate their first birthday.
Opening a KiwiSaver account for your child means they may receive:
- future assistance for buying their first home
- government and employer contributions as they age and begin working.
Whether you want to help your child grow their savings, learn great financial habits, or get help to buy their first home, it is generally simple to join KiwiSaver.
Help your kids onto the property ladder
There are many ways to help your children take their first step onto the property ladder, such as:
- By paying off your home loan, the equity in your home builds. This equity may be combined with the equity gained from any potential increases in the value of your home. You can then release the built-up equity by borrowing against it, and use this money to help your children.
- Gifting a deposit, which will reduce the amount of money your children need to borrow and reduce the amount of interest paid over the life of their home loan.
- Using the equity in your home for you to act as a guarantor to help your child qualify for a home loan (however if your child fails to repay the debt, your home could be at risk).
- Signing as a joint borrower on your child’s home loan. This isn’t for everyone – although you’d technically own only half of the property, you’d have full financial responsibility if your child didn’t pay their part.
You need to think about your own circumstances before deciding if and how you can help your kids. Seek financial and legal advice to help you fully understand the risks and benefits.
Important informationShow more
AMP Wealth Management New Zealand Limited is the issuer and manager of the AMP KiwiSaver Scheme (the 'Scheme'). The Supervisor of the Scheme is The New Zealand Guardian Trust Company Limited.