KiwiSaver for Children
Give your kids a financial head start. Children can join KiwiSaver as soon as they have an IRD number, with a parent or guardian signing up anyone under 18. One of the most common goals Cam hears from parents is: "I'd love to help my children buy their first home." KiwiSaver can help - and the earlier you start, the more powerful the result.
When are children eligible to open a KiwiSaver account?
As soon as they have an IRD number - technically the day after they are born. The same application process is used for children and adults, but for under-18s at least one parent must have the child's account linked to theirs and supply ID with the application.
Government contributions from age 16
The government member tax credit of up to $260.72 per year begins when a child turns 16. From 1 July 2025, eligible members aged 16 and 17 can receive it - previously it started at 18. From age 16, any child who contributes at least $1,042.86 in a KiwiSaver year is eligible for the full government credit.
Employer contributions for working teenagers
If a child under 18 starts working, employer KiwiSaver contributions are mandatory for children over 16 enrolled in KiwiSaver - it is a legal requirement. For under 18s to enrol one parent must sign them off - it is not automatic enrolment. For working children under 16, employer contributions are discretionary. This makes enrolling working teenagers in KiwiSaver especially worthwhile.
The right fund for children
Because children have a very long investment timeframe - often 15 to 20 years before they need the money for a first home, and 50+ years before retirement - growth or aggressive funds are typically the best choice. Short-term market fluctuations matter much less when the money has decades to recover and grow.
Who can contribute?
Parents, grandparents, and other family members can all make contributions directly into a child's KiwiSaver account at any time. Regular contributions, birthday gifts, and Christmas contributions are all valid ways to build the balance over time.
What a child's KiwiSaver could look like
Cam uses projection software with clients to model future KiwiSaver balances across different scenarios. Here is a simple example to show how powerful compounding can be for a young person.
Start at age 5 - before employment
$100 initial deposit, aggressive fund, $80/month from parents
~$36,500
projected balance at age 19 (~$27,500 in today's dollars)
Before your child even starts working, they already have a meaningful KiwiSaver balance building towards a first home deposit.
Age 25 - after 5 years of work
Same child, starts working at 20 on a modest income
~$100,000
projected balance at age 25 (~$67,000 in today's dollars)
Adding employer contributions and their own contributions on top of the early start produces a near six-figure first home deposit by their mid-twenties.
The cost of waiting
Same contributions, starting at age 18 instead of 5
Tens of thousands less
the earlier you start, the more compounding does the work
Every year you delay starting a child's KiwiSaver is a year of compounding lost. The difference between starting at 5 and starting at 18 is substantial.
Get grandparents involved. Make KiwiSaver contributions birthday and Christmas gifts. Get kids engaged and teach them why this matters - because one day, it really will. Imagine being 19 years old and knowing you already have $27,500 going towards your first home. That is incredibly motivating.
Projections are illustrative and based on an aggressive fund with market-average returns, 2% annual inflation adjustment. Past performance does not guarantee future results. Watch Cam run through it below, or read the transcript.
Read the transcript instead
If you’re a parent, one question you might have asked yourself is, “Should I start a KiwiSaver account for my children?”
A lot of parents come to me and say, “I’d love to help my children buy their first home when they’re adults.”
That’s a really solid goal.
So, can KiwiSaver help?
In short - YES, IT CAN.
I’m going to walk you through some software I use with clients to project future KiwiSaver balances. It allows me to factor in many different variables, including the impact of starting at different ages.
I’ll show you an example on the video - push play in the link at the top of the page.
BTW, I need to be clear - this is not personalised financial advice.
If you want personalised advice, book a session with me. For now, I’ll use simple numbers to show how powerful compounding can be for a young person.
(Here's the video transcript if you can't play the video:)
Let’s assume you open a KiwiSaver account for your child at age five.
You put in an initial $100 to get started and choose an aggressive fund, because they’ve got plenty of time before the money is needed.
At age five, your child obviously isn’t earning anything yet, but you contribute $80 per month - about $20 a week.
We’ll then assume that when your child turns 20, they start working in a minimum-wage job. Today, minimum wage is just under $50,000. If we inflation-adjust that out by 15 years, that’s roughly $80,000.
Now let’s see what happens.
There’s no income coming in until age 20, but regular contributions from you are building momentum. With an aggressive fund and time on their side, by age 19 - before they even start working - their KiwiSaver balance is around $36,500.
If we inflation-adjust that back to today’s dollars, that’s just over $27,500.
Imagine being 19 years old and knowing you already have $27,500 going towards your first home... That’s incredibly motivating.
It also opens the door for real conversations between parents and children about money, compounding, and how wealth actually builds over time - not just in theory, but in practice.
And realistically, this dramatically improves the chances of that young person buying a home. As we know, house prices have been rising faster than incomes for a long time.
Is it worth starting a KiwiSaver account for your child?
Absolutely! The earlier the better.
This example hasn't even factored in the extra they would have at 20 from part time work done as teenagers, or starting full time work at an earlier age.
If your child then works for five years on a modest income, by the age of 25 they could have a balance of almost $100,000 - or around $67,000 in today's money - towards a first home deposit!
Get grandparents involved. Make contributions birthday and Christmas gifts. Get kids engaged and teach them why this matters, because one day, it really will.
If you’d like personalised financial advice, head to my website and book a session - the “Book Now” buttons make it very straightforward.
I’m Cameron Steele from Solid Steele Advice.
Hope to meet you soon.
This video expands on our full KiwiSaver for Children guide.
Book in a free KiwiSaver advice meeting with me here
Download the free ebook: How to Make Your Kids Better with Money
Money skills come before KiwiSaver
A KiwiSaver account works best for kids who understand what it's for. If you want the full picture on raising money-smart children - pocket money, saving habits, teaching teens to budget and invest - I've written a complete age-by-age guide: Teaching kids about money: a Kiwi parent's guide. You can also grab the free Kids & Money eBook to work through it together.
Setting up your child's KiwiSaver the right way
Many people are surprised how much difference the right KiwiSaver setup makes over time. Getting it right from the start - the right provider, the right fund, the right contribution approach - maximises every dollar put in.
Choose the right provider and fund
Not all providers offer the same funds or the same fee structures for children's accounts. Some, like Fisher Funds, have a children's account with no management fees. Cam compares the options and recommends the best fit for your child's situation.
Explain risk and fund types in plain English
Cam explains what aggressive, growth, balanced, and conservative funds actually mean for a child's account - and why the long timeframe typically makes a higher-growth fund the right starting point for most children.
Work out a contribution approach that fits
Cam helps you think through how much to contribute and how to structure it - whether that is a fixed monthly amount, occasional lump sums, or involving extended family. Even small consistent contributions compound into a meaningful result over 15-20 years.
Plan for the first-home milestone
As children approach adulthood, Cam helps transition the strategy from pure growth to planning for a first-home withdrawal - including reviewing fund type, understanding withdrawal eligibility, and timing the transition correctly.
KiwiSaver is only part of it. Financial literacy in New Zealand covers why the habits a child builds around money tend to matter more over a lifetime than the balance you start them with.
Trusted by Kiwis like you
"Not only did he sort myself and wife out with our KiwiSaver but he also sorted out our 4 and 7 year old with an account each - giving them a great head start. He explained how KiwiSaver worked and made it extremely easy to understand. We are very happy and highly recommend him."
"As a young fella with very little knowledge he was a great chat and made everything I wanted to know easy to understand. Highly recommend - he has definitely helped set me up for KiwiSaver."
"Cam has been fundamental to myself and my partner not only understanding our KiwiSaver but helping it grow to more than we could ever imagine. Highly recommended."
KiwiSaver for children, answered
Can children have a KiwiSaver account in New Zealand?
Yes. Parents or guardians can open a KiwiSaver account for a child as soon as the child has an IRD number - technically the day after birth. For under-18s, at least one parent must have the child's account linked to theirs and supply ID with the application. The account stays in the child's name and continues growing over time.
Is it worth starting KiwiSaver for children?
Absolutely - the earlier the better. A child who starts KiwiSaver at age five contributing $80 per month in an aggressive fund could have around $36,500 by age 19, before they even start working. After five years of employment on a modest income, that could grow to close to $100,000 towards a first home deposit. Time and compounding are the most powerful tools in investing.
Can I enrol my child in KiwiSaver, and is there any point doing it when they're young?
Yes, you can enrol a child of any age - you just need to go directly through a KiwiSaver provider rather than through an employer, and a parent or guardian handles the enrolment (the child doesn't need to sign anything themselves). The upside of starting early is time - compound growth over 50-plus years can make a genuine difference to a first home deposit or retirement nest egg. And once a teenager aged 16 or 17 starts a part-time job, they'll pick up compulsory employer contributions from day one, so being enrolled early means they don't miss out. One thing to know: once enrolled, there's no opting out of KiwiSaver entirely, so it's worth having a quick chat with Cam before you sign up.
Can parents contribute to a child's KiwiSaver?
Yes. Parents, grandparents, and other family members can make contributions into a child's KiwiSaver account at any time. Regular monthly contributions, birthday gifts, and Christmas contributions all add up significantly over a long timeframe. Consider making KiwiSaver contributions part of your gifting tradition.
What KiwiSaver fund should a child be in?
Most children benefit from a growth or aggressive fund because they have a very long investment timeframe before the money is needed. Short-term market fluctuations matter much less when the money won't be touched for 15-20 years or more. Cam reviews the options and recommends the right provider and fund in your free session.
Can children use KiwiSaver to buy their first home?
Yes. KiwiSaver savings can be used towards a first-home deposit when the time comes, subject to eligibility criteria. Starting early means a child could have a significant balance built up long before they are ready to buy - dramatically improving their chances of getting on the property ladder.
Do children get government KiwiSaver contributions?
Government contributions (the member tax credit of up to $260.72 per year) begin when a child turns 16. From 1 July 2025, eligible members aged 16 and 17 can receive it - previously it started at 18. From age 16, a member who contributes at least $1,042.86 in a KiwiSaver year and meets the conditions - mainly living in New Zealand, with annual taxable income of $180,000 or less - receives the full government credit. Contribute less and the credit is 25 cents for each dollar contributed.
Do children get employer KiwiSaver contributions?
If a child under 18 starts working, employer contributions are mandatory for children over 16 enrolled in KiwiSaver - it is a legal requirement. For under 18s to enrol one parent must sign them off - it is not automatic enrolment. For working children under 16, employer contributions are at the employer's discretion. This makes enrolling working teenagers in KiwiSaver especially worthwhile.
How much should parents contribute to a child's KiwiSaver?
Even small regular contributions make a meaningful difference over long periods. $80 per month ($20 per week) from age five is enough to build a substantial balance by the time a child is ready to buy their first home. Consistency and starting early matter far more than the size of each contribution.
Why is compounding so important for children's KiwiSaver accounts?
Compounding means investment returns earn further returns over time. The longer money is invested, the more powerful this effect becomes. A child who starts KiwiSaver at age five has decades of compounding before they need the money. Even modest contributions made early can grow into a life-changing amount.
Reviewed by Cameron Steele, Financial Adviser (FSP1010212) - updated July 2026.