Buying a first home is a huge milestone, but with rising house prices, it can feel out of reach for many young New Zealanders.
As a parent, you might be wondering how you can set your child up for success and help them get onto the property ladder. The good news? Teaching them smart saving habits early can make all the difference.
1. Start the conversation early
Financial literacy isn’t often taught in schools, so it’s up to parents to help kids understand money. Talk to them about saving, spending wisely, and the importance of planning for big financial goals—like a home deposit. The earlier they develop good habits, the better prepared they’ll be.
2. Encourage smart saving habits
Helping your child develop a strong savings mindset from a young age can set them up for future success. Here’s how:
Set Up a Bank Account – A dedicated savings account can teach them about managing money and watching their savings grow.
Pocket Money with a Purpose – Encourage them to save a portion of their allowance or earnings from part-time jobs.
Goal Setting – If they have a goal (like buying a car or funding their education), they’ll learn the discipline of saving, which can later be applied to a home deposit.
3. Teach the power of compounding interest
One of the best lessons in saving is understanding how interest works. Even small savings can grow significantly over time with the right account or investment plan. Help them explore options like:
High-interest savings accounts
Term deposits
KiwiSaver (more on this below!)
4. KiwiSaver: a key tool for hirst-home buyers
Encourage your child to join KiwiSaver as soon as they start earning. Their contributions, along with employer and government contributions, can build up a solid first-home deposit over time.
Some key benefits:
They can withdraw most of their KiwiSaver savings (except government contributions) to buy their first home.
If they meet the criteria, they may be eligible for the First Home Grant, which provides up to $10,000 per person toward a first home.
5. Consider a ‘family boost’
If you’re in a position to help financially, there are different ways to support your child:
Gifting Money – A lump sum toward their deposit can give them a head start (but be clear about whether it's a gift or a loan!).
Guaranteeing a Loan – Some parents act as a guarantor to help their child secure a mortgage.
Co-Buying – Some families choose to purchase a home together, allowing their child to enter the market sooner.
6. Help them understand the home buying process
Even if they’re not ready to buy just yet, teaching them about mortgages, interest rates, and property costs will prepare them for when the time comes.
Final thoughts
Helping your child save for their first home doesn’t have to mean giving them money—it’s about setting them up with the right mindset and tools to succeed. Whether it’s through KiwiSaver, smart saving habits, or financial education, the steps you take now can make homeownership a reality for them in the future.
Need personalised advice on how to support your child’s homeownership journey? Get in touch today!
