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STYLE | finance

1. PERSONAL FINANCE BOOKS AND BOARD GAMES Teaching your children financial literacy is a gift that can outlive you – and best of all it’s not too early to start discussing big-picture concepts such as saving and liabilities versus assets with children as young as six or seven. Classics such as Rich Dad, Poor Dad are a great way to instil a financially savvy and entrepreneurial mindset; opt for the board game version if you have younger kids or the hardcopy book for teens. As they get older, New Zealand-born Martin Hawes’ Financial Secrets and Mary Holm's Get Rich Slow make great gifts. 2. BUY HEALTH INSURANCE You can ensure your children and grandchildren’s continued wellbeing by taking out health insurance for them, often from approximately $300 per year. One of the major benefits of gifting them a health insurance policy at a young age is that the cost of a premium is determined by the age of the policy holder which, given if they are healthy, will be a lower rate the younger they are. The younger the child the more likely the policy is to have fewer exclusions, too. This also means your grandchild or child can use a private hospital if required and not have to go on waitlist within the public system.

3. A KIWISAVER TOP-UP Gifting $500 directly into your child’s Kiwisaver is a powerful way to invest in their future. Not only does it boost their financial standing at retirement, it teaches them to plan ahead and introduces the concept of delayed gratification. If you wanted to, for other gift-giving occasions, you could add a little more money to the fund. Who knows? Over time they may be in a position to withdraw a deposit for their first home. If you encouraged all close family and friends to contribute, the fund will soon grow. 4. STOCK MARKET COURSE FOR TEENS Demystify the stock market by sending your teens on a course to teach them how financial markets operate. Part of your gift could include $100 for them to invest directly online from their mobile phone once they’ve completed the course so that they can put their newfound knowledge to the test. By teaching them about the ups and downs of the stock market, you’re reinforcing the active role they need to take in growing their money. 5. INVESTMENT FUND TO HELP THEM REALISE THEIR DREAMS A clever way to help your children squeeze out the very best experiences once they reach adulthood is to open an investment

account for them when they’re young for them to use at 18 or 21. With an annual contribution of $1000 or less a year, you could essentially fund their gap year, or a post-graduate degree overseas. It might encourage your child to squirrel away their pocket money or holiday job earnings to save even more, and teaches them about the power of compound interest. 6. TRAVEL INSURANCE FOR THEIR GAP YEAR Paying for comprehensive travel insurance that covers both their belongings and health is a great gift to give your 17-year-old embarking on his/her first trip overseas. Not only may it keep them safe, it offers you peace of mind knowing they are protected. 7. THEIR FIRST INCOME PROTECTION POLICY To a 20-something who would much rather be spending their spare cash on entertainment and new clothing, taking out an income protection plan can seem like a drag. By taking it out for them for the first year once they’ve secured their first job, you are instilling great financial habits that will benefit them in the long run and demonstrating to them the necessity of protecting income.

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Final Edition Lancer delivers the signature driving experience you expect, plus many luxury features to send this legendary name off in style. Only 400 sedans available nationwide. Call 03 379 0588 or visit christchurchmitsubishi.co.nz to book a test drive. *Price listed is for Lancer Final Edition sedan. Price excludes On Road Costs, which includes WoF, Registration and a full tank of fuel. See www.mmnz.co.nz for Diamond Advantage terms and conditions.

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