David Farrar: 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.

David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition.