A good idea

Radio NZ reports:

The ACT Party leader David Seymour has floated dishing out $500 to every year 11 student for an investment account, to promote investing at a younger age.

It was not an ACT policy “yet”, he said.

Seymour said the idea could be funded by taking about five percent, or $30 million, of the $600 million annual KiwiSaver subsidy – the government’s $260 contribution to people’s KiwiSaver accounts.

“I think most people would say that’s a bargain,” he said.

“For a relatively modest amount of money, we could give a generation a practical introduction to saving, investing, ownership, and financial responsibility.”

Using actual money, rather than a simulator, means students have “skin in the game” and would be more motivated, Seymour said.

I think this is a great idea. I already chat to my kids about the benefits of saving, and even give them an incentive that if they have any chore money unspent at the end of the month, I will match them dollar for dollar if they save it rather than spend it.