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It’s never too early to start teaching kids about money. To celebrate Money Month, we asked some of our accountants across the country what they’ve been teaching their children. This is part one of a two-part series…
Time to read: 6 mins
Keryn Jarvis – Business Advisory Services associate – Baker Tilly Staples Rodway Tauranga
My six-year-old Jacob is boat mad. He’s wanted to buy a boat since he was about three. I’m currently teaching Jacob about needing to save your money for big purchases such as a boat or a house. We recently went to ANZ to bank his life savings into a Serious Saver account. Each month we now log into internet banking to see how much interest he earned on his deposit and what his balance has grown to. If I can teach him early about compounding interest and making your money grow faster by investing, then maybe when he is old enough, he can buy his dream boat!
Daniel Merckle – Tax director – Baker Tilly Staples Rodway Auckland
While brainstorming Christmas gifts one year with our son (who was six years old at the time), he suggested that we get him his own credit card. We laughed and asked why he would like a card. He replied, so that he could buy unlimited things.
In the modern digital world, it is so important to teach kids about both physical money and digital currency – that although the money might take a digital form, it still represents “real” value. Our son’s request started a more intentional, broader approach to teaching our kids the foundational basics of what money is, what it does, where it can be stored, how it can be earned, and different ways it can be spent.
We try to incorporate lessons into different aspects of life; whether that is sometimes using cash for purchases and letting the kids hand it over and receive the change; or adding to story lines while playing. That particular Christmas our daughter received a play kitchen; both kids loved to “pretend cook” and take orders. We made them an order pad and soon their pretend café was launched. At the end of a meal, a bill was presented. The kids used their toy cash register to add up the items and take payment – both cash and card were accepted. It was a fun way to incorporate money lessons into play time.
Our kids are still young, but we are trying to teach them foundational financial skills so that as they grow, they will be able to make their money work for them. It is all about balance; spending, saving and sharing.
Daimon Stewart – Business Advisory Services managing director – Baker Tilly Staples Rodway Taranaki
We set up shares accounts for our boys (aged 13 and 15). We tip in some pocket money monthly for them to invest. It gives them an idea of investment, how the sharemarket works, what dividends are and how you can make dollars work for you!
I think it’s been beneficial as they get excited about the $1.00 dividend they’ve received and about the gains they’re making. Overhearing discussions about who’s up and who’s down in the markets and whose “portfolio” is the best is quite cool! Although they blame me for encouraging them to invest in KFC (Restaurant Brands), which has since tanked!
Nigel Stratton – Business Advisory Services associate – Baker Tilly Staples Rodway Christchurch
My wife and I met at a young age and made some decisions which have set us up in a relatively good financial position. In hindsight the decision to buy our first home, and then trade up possibly had a greater impact on our current lifestyle than our incomes. Key points of the discussions with my children are:
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