Josh Hoskin Smart Money [email protected]

I continue to be amazed that many people believe KiwiSaver is some type of bank account. That many people still view this as being the case, is evidence our education system needs to include more about financial matters as soon as possible.

Let me clarify: KiwiSaver is not a bank account, it is a retirement investment.

To be fair, more often than not, people will refer to KiwiSaver as an account. The use of the word account has bank connotations, hence some misunderstanding. Financial education would help remove this misconception. I think promoting the idea of saving through primary school banking, which still happens in some areas, is still a great idea. The children get used to saving and they get to watch their account balance increase over time. At intermediate and secondary school, you can extend this concept.

Cash flow management sometimes called budgeting should be compulsory in some form or another. From here, you can start to discuss investment and retirement.

Investing and saving are positive for our community and our young people, so why not spend some time on these areas. That way, we can avoid misunderstandings like people thinking KiwiSaver is a bank account of some description.

The article is based on personal opinion and may not be representative of the views of Goldridge Ltd. Josh Hoskin is an authorised financial adviser with Goldridge Wealth Management. A copy of his Disclosure Statement is available free on request. This article is not personalised advice under the Financial Advisers Act 2008. Readers should not act on any suggestions in this column without taking professional advice that takes into account their current circumstances and appetite for risk.