The article below was in the New Zealand Herald today and is good common sense … “KiwiSaver is an excellent way to start your children’s savings habit,” said ANZ Wealth managing director John Body. “It allows you to contribute as little or as much as you want into the account while your child is growing up. “For those under 18 and outside the work force the main benefit for joining is the $1000 kick start. “Once you reach 18 years old you become eligible for the Government annual contribution, also called the member tax credit,” he said. The member tax credit is worth an extra $521.43 each year and does not count as taxable income. To get the full member tax credit automatically you have to chip in at least $1,042.86 a year. That’s 50c kicked in by the government for every $1 you contribute up to the maximum payment of $521.43 per year. Lower income earners may fall short of the contributions needed to get the whole $1042, but it is possible to make a top-up payment directly to your KiwiSaver provider. For example, if you earn $35,000 before tax and are contributing the minimum 3 per cent from your salary you would add $1050 to KiwiSaver over the course of the year and automatically get the $521 member tax credit. But, someone earning $26,000 and paying 3 per cent would only make $780 worth of contributions. That would earn them $390 worth of member tax credit, but by voluntarily chipping in another $262.86 they could get an added … Continue reading KiwiSaver for kids … yes or no?