A Kiddy Saver Scheme?

When I was involved with South Auckland Middle School and Middle School West Auckland – I calculated that that the schools providing uniform, stationery and IT (without asking for a donation) saved the families approximately $1,200 per student per year.

My epiphany was that is each family banked that at $30 per week over the 40 week school year – after the four Middle School years they would have $6766.56 based on 5% compound interest injected monthly.

Brilliant … I thought. A great start to financing the child’s last 3 years of high school – or leaving the money in for tertiary study.

So … I asked bank after bank and none were interested (I did wonder if their approach would have been the same if I was still head of business at St Cuthbert’s). They all told me that their lack of time and resources made it difficult to come out and open 180 accounts. They also told me that conglomerating accounts would be an issue because of “money laundering” – clearly an issue when a 10 year old is putting in $30 per week.

The new policy to add financial literacy into NZ’s education is a good thing.

Even better would be a well-administered savings/investment scheme for children.

Any ideas people?

Alwyn Poole
[email protected]