Kids can have a KiwiSaver account and take advantage of the tax-free $1,000 government kick-start too.  Pocket money does not count as “income” so they will not have to save anything until they are earning taxable income.  You will need to apply to get an IRD number for your child, but that can be done as soon as they are born.

As with all KiwiSaver schemes your child will receive the $1,000 payment for opening the account and will receive subsidised fees so, if opened when your baby is born, or whilst your child or children are still very young, by the time they are up to buying their first home there is a nice nest-egg built up with the help of compound interest.

Some KiwiSaver providers may require you to pay a minimum deposit, which will vary between providers, but is generally around $500.  Some may even require a minimum annual contribution but what better gift from grandparents at birthdays and Christmas?