Helping your teen learn to handle their own money is important, but let’s be real—giving money advice to teenagers isn’t always easy, and sometimes you’ll just get an eye roll in return for your efforts.

However, with the new changes to KiwiSaver that started on 1 July 2025, now is the perfect time to talk to your 16- or 17-year-old about setting up their account—and setting themselves up for life.

So, we’ve framed the conversation in a way that might pique their interest! If you’ve got a 16- or 17-year-old at home, why not grab some snacks and talk about opening a KiwiSaver account? It’s a great way to help them get set for whatever the future brings.

Here’s how you can guide the conversation.

Chatting with Your Teen About KiwiSaver: A Parent’s Playbook

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1. “Did you know the government gives free money for saving?”

Let your teen know that if they contribute $20 a week to KiwiSaver, they’ll receive $260.72 a year from the government—just for saving. That started from 1 July 2025. It’s a great way to show them how small habits can lead to big rewards.

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2. “Guess what? Soon your boss will chip in too.”

From 1 April 2026, employers will be required to contribute to KiwiSaver for 16- and 17-year-olds who are enrolled and contributing. That’s extra money going into their account—without them doing anything more.

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3. “The sooner you start saving, the more your money can stack up.”

Use this example: If your teen starts saving $10 a week at age 15 and earns an average return of 5%, they could have $110,000 by age 65 (providing they have had no withdrawals). If they wait until 25, they’d only have $63,000. That’s a $47,000 difference—just by starting early.

4. “How much you put in is going to change soon, which means you’ll save more.”

Let them know that from April 2026, the default contribution rate will increase from 3% to 3.5%, and then to 4% in April 2028. They can opt down to 3% temporarily if needed, but it’s good to plan for the increase.

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5. “KiwiSaver isn’t just for old people—you can use it to help buy your first house.”

After just three years of KiwiSaver membership, those funds can be used for a first home deposit. So, if your teen starts early, they could be eligible before they even hit twenty, right around the time many start thinking about a path to home ownership.

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6. “KiwiSaver is an awesome way to boost your money skills and confidence.”

KiwiSaver teaches teens about:

• Starting investing early

• Deciding what funds to invest in

• Making regular contributions

• Watching their money grow with compound interest

• Reading account statements

• Planning for the long term

It’s a hands-on way to build financial literacy and independence.

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7. “I can help get you started.”

There’s no minimum contribution. You, grandparents, or other family members can contribute birthday money or set up small weekly transfers. Some families treat KiwiSaver like a long-term gift account.

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Start small, build smart. KiwiSaver is the foundation for future financial confidence and first-home success

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Bring Your Teen In to Get Set Up for Life

Starting KiwiSaver early can be life-changing—and it’s easier than you think.

Here’s how you and your teen can take the first step together:

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Talk to Our Team

Book a free KiwiSaver consult for you and your teen with one of our advisers. We’ll guide your teen through:

• Choosing a provider that aligns with their values (e.g. socially responsible funds)

• Selecting a fund type that suits their risk profile and goals

• Setting the right contribution rate

• Confirming their tax rate to maximise their investment

We’ll make sure they’re set up correctly from day one.

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Apply Together—with Support

Teens aged 16–17 must sign up with a parent or guardian. We’ll walk you both through the process and answer any questions along the way.

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Start Small, Grow Big

Even $5–$10 a week can make a meaningful difference over time. It’s not about how much—they key is starting early and building the habit.

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Make a Time to Make it Happen

At Velocity we believe that KiwiSaver is the foundation for future financial confidence and first-home success and we can help you and your teen get set up for life. Our team can assist with tailored fund selection, contribution planning, and tax guidance. Our free KiwiSaver consults ensure teens can maximise government and employer contributions, giving the best start from day dot.

Start small, build smart!

Book your Teen a KiwiSaver catch up with us here

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Final Thoughts

KiwiSaver isn’t just another savings account; it’s giving them a massive leg up for their future. Getting started is super simple, and the real benefits add up fast. For your teen, it’s a real chance to get ahead.

So, why not chat about it with them today, and make a time to talk to us about getting them set up? You might be surprised how easy it is to help your teen kick off their journey to financial independence!

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Giovana

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About Giovana

Hola, I’m Giovana, a Client Services Manager and Financial Adviser at Velocity. With 12 years in the industry, I’m passionate about delivering excellent customer service and smooth processes. Outside work, I’m a mum of two girls and love dancing—especially Peruvian cultural dances.

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Disclaimer

Giovana Paulin (FSP1007277) is a Financial Adviser with Velocity Financial (FSP95466). No financial decision should be made based on this blog alone. Please see our disclosure statement on our website.

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Always Get Professional Advice

This post is a general guide. For important financial decisions, seek independent advice tailored to your situation. Talk to a financial adviser, lawyer, and accountant—they’ll help you find the best solution.

Visit our website for more on our advisory services and disclosures:👉 https://www.velocityfinancial.co.nz/disclosure-statement