Financial literacy is not taught in most NZ schools — it’s something parents pass on. Or don’t. Children who grow up with money conversations, practical experiences, and age-appropriate responsibilities consistently handle money better as adults. The research on this is clear.
Here’s a practical, age-by-age guide to building money skills for New Zealand children.
Start with pocket money and a physical piggy bank around age 5–6. Open a youth bank account around 9–12. Introduce KiwiSaver when they start work (you can join KiwiSaver at any age). Talk about student loans before Year 12 — understanding them before applying is far better than being surprised.
Ages 5–8: Coins, Saving Up, and the Concept of “Enough”
At this age, children are concrete thinkers. Abstract concepts like interest and inflation mean nothing — but physical cash, counting coins, and saving up for a specific thing works very well.
Key concepts for 5–8 year olds
- Money is earned, not infinite. Let children see you pay for things, and explain where money comes from (you go to work, you get paid).
- You can’t have everything. Introduce trade-offs: choosing one thing means not choosing another.
- Saving up works. If there’s something they want, help them save for it over weeks rather than buying it immediately.
Pocket money for 5–8 year olds
A common NZ guideline: $1–$2 per year of age per week. A 6-year-old might get $5–$6/week.
The three-jar method:
- Jar 1: Spend (immediate spending money)
- Jar 2: Save (medium-term saving goal — something they’ve chosen)
- Jar 3: Give (charity, a gift for someone)
Don’t give pocket money on demand — give it on a consistent schedule (weekly) and let them manage it. Running out before the next payment is a valuable lesson.
NZ resources for this age
- Sorted Money Go-Round: sorted.org.nz/tools/money-go-round — interactive financial education for children
- BNZ Young Saver account: Available from age 0 (parent-managed initially)
Ages 9–12: First Bank Account, Savings Goals, and Value
At this age, children can handle more abstract concepts. A real bank account — with a card they can see their balance on — is a powerful learning tool.
Key concepts for 9–12 year olds
- The difference between price and value. Does something expensive mean it’s worth more to you?
- Compound interest — introductory. If you save $10/week for a year, you have $520 plus interest. Show them a savings calculator.
- Debit vs credit. A debit card spends your money. A credit card borrows money you have to pay back (with interest).
- Online vs physical money. Numbers on a screen are real money. Explain online banking.
Opening a youth bank account
Most NZ banks offer youth accounts from age 9–13 (requirements vary):
| Bank | Account name | Min age | Notes |
|---|---|---|---|
| ASB | ASB Young Saver | From birth (parent managed), teen use from ~13 | No fees, good online access |
| BNZ | BNZ YouMoney | From 13 | Full-featured youth account |
| ANZ | ANZ Go | From 13 | No fees |
| Kiwibank | Kiwibank Youth Account | From 13 | No fees |
| Westpac | Westpac Youth | From 13 | No fees |
For under 13: Most NZ banks require parental consent and some require a parent to be present in-branch to open. ASB has the most accessible options for younger children.
Savings goals for 9–12 year olds
Teach them to set a specific savings goal (a toy, a game, a trip) and work backwards: “This costs $80. I save $10/week. That’s 8 weeks.”
Matching contributions (you match what they save) is a powerful motivator — and teaches them how employer KiwiSaver matching works later in life.
Ages 13–16: Part-Time Work, Tax, and Real Money Skills
Teenagers in NZ can legally work from age 13 in some roles (with parental consent and restrictions on hours/type of work), and more broadly from 15. Most start with supermarkets, fast food, or retail.
Key concepts for 13–16 year olds
- A payslip. Show them what PAYE deductions look like. Why is their take-home less than their rate says?
- Tax codes. Their first job = tax code M (primary income). Explain why the right tax code matters.
- KiwiSaver. They can join KiwiSaver at any age. From their first job, they’ll be automatically enrolled. Explain employer contributions (employer pays in too — it’s free money).
- Spending vs saving decisions. Part-time income creates real choices. Help them set a structure (not a lecture — show them, not tell them).
- Student loan awareness. Start talking about tertiary education costs. Student loans have no interest in NZ (if you stay in NZ) but still reduce take-home pay in the future.
KiwiSaver for teenagers
Children can join KiwiSaver at any age. Once they start working:
- Their employer automatically enrols them
- They can opt out within 56 days (generally shouldn’t — employer contributions are genuinely free)
- Employer contributes minimum 3% on top of their pay
- Their contributions at a young age have 40+ years to compound
Even small contributions at 15–16 have a massive long-term impact due to compound growth. This is worth explaining with a compound interest calculator.
Ages 17–18: Full Budget, Student Loans, and Leaving Home
Before a teenager leaves home — for university, a flat, or work — they should have practical skills in running their own budget. This is where parental financial education either pays off or reveals gaps.
What they need to know before leaving home
Budgeting:
- How to calculate their income after tax
- How to pay rent on time
- What utilities actually cost
- The difference between a “want” and a “need” in practice (not theory)
Student loans (if going to university):
- Student loans in NZ are interest-free while you live in NZ
- Repayments start when your income exceeds $24,128/year (as at 2026 — check current threshold at ird.govt.nz)
- Repayment rate: 12 cents per dollar above the repayment threshold
- Going overseas: interest applies (currently 3.5% — confirm with IRD)
- Living costs loan: available alongside tuition fees loan
Practical skills to have before leaving:
- Can set up automatic bill payments
- Understands how to read a bank statement
- Has a KiwiSaver account set up
- Knows their IRD number
- Can file a tax return (simple cases — or use myIR’s easy process)
- Understands how credit cards work and why minimum payments are expensive
First flat budget example (Auckland 2026)
| Expense | Per week |
|---|---|
| Rent (shared flat, per room) | $200 – $350 |
| Groceries (shared or individual) | $80 – $150 |
| Power (shared) | $20 – $40 |
| Internet (shared) | $10 – $20 |
| Transport (bus pass or fuel) | $30 – $60 |
| Phone | $20 – $40 |
| Estimated minimum | ~$360 – $660/week |
NZ Financial Education Resources
| Resource | What it is | Link |
|---|---|---|
| Sorted Money Go-Round | Interactive financial games for schools | sorted.org.nz |
| Commission for Financial Capability | Resources for teachers and parents | cffc.org.nz |
| ASB GetWise | Financial education programme for NZ schools | asb.co.nz/getwi |
| BNZ Money in the Classroom | Resources for secondary school | bnz.co.nz |
| Banqer | NZ-made classroom banking simulation tool | banqer.com |
Pocket Money by Age — NZ Reference Guide
| Age | Suggested weekly pocket money |
|---|---|
| 5 | $3 – $5 |
| 6 | $4 – $6 |
| 7 | $5 – $7 |
| 8 | $6 – $8 |
| 9–10 | $8 – $12 |
| 11–12 | $10 – $15 |
| 13–14 | $15 – $25 |
| 15–16 | $20 – $30 (or part-time work instead) |
These are general guides — what matters more than the amount is the consistency and the learning opportunity.
Next Steps for Parents
- Start with a conversation, not a lecture — ask your child what they’d like to buy and help them work out how long it would take to save for it
- Open a youth bank account when they’re ready — around 9–12 is typically the right window
- Use Sorted Money Go-Round for interactive, NZ-specific financial education content
- Talk about student loans before they apply — this is a decision that affects them for a decade
See also: Relationships hub · KiwiSaver guides · Personal Finance hub · Income guides