I think about my kids all the time. What they’ll have in their lunchbox, whether their PE shirt is clean, if I remembered to buy that birthday present, or the toothpaste they ran out of last night. As a mum of three, the emotional workload is never-ending. But lately, my thoughts have delved deeper than their current state of play. I keep wondering: how can I better provide for their futures? With everything getting more expensive — housing, education, even groceries — I find myself asking how my kids will afford those big-ticket items when they grow up. I had thought about opening investment accounts for them, but the paperwork and long-term commitment seemed overwhelming.

Then, over coffee one day, someone said something that caught me completely off-guard: “Why don’t you open a KiwiSaver account for them?” I didn’t even know you could. So I went straight to someone who would know: Jennie O’Donovan, head of communications and education at Simplicity – New Zealand’s nonprofit, low-fee KiwiSaver provider.

“There’s no minimum age,” O’Donovan told me. “Children can join KiwiSaver from birth (well, their parents or legal guardian can enroll them, of course!). The real advantage of starting early is time. The longer the money is invested, the more you benefit from compounding returns — a really powerful way to grow savings over your child’s earlier years.”

As someone who knows more about Chanel than compounding, I appreciated her breakdown. “Compound returns are when your investment earns returns — and then those returns start earning returns, too. It’s like a snowball,” she explained. “Start with $100 at a 5 per cent return. That’s $5 earned in year one. In year two, you earn 5 per cent on $105, not just $100. It adds up significantly over time.”

So, what’s the catch? Surely there’s something that makes KiwiSaver less appealing for kids? One of the biggest misconceptions, O’Donovan says, is that you need to contribute a lot for it to be worthwhile. “Not true. Even $10 a week from birth can grow into thousands by age 18,” she says. “Another myth is that KiwiSaver is inflexible. While it’s true the money is generally locked in until retirement or a first home1+ purchase, that’s kind of the point. It’s protected from being spent on short-term wants.”

If you’re weighing up KiwiSaver versus a traditional savings account, the key difference is returns. Savings accounts are low risk but often barely keep up with inflation. KiwiSaver, while less accessible, is a long-term investment with higher potential for growth — especially if you choose a growth or high-growth fund, which O’Donovan says are usually best for kids and looking at long-term horizons.

To set up KiwiSaver for a child, all you’ll need is their IRD number, birth certificate, and ID for guardians — but once it’s done, it’s largely a “set and forget” investment. Contributions can be automated, and you can review performance once or twice a year. O’Donovan says KiwiSaver can also be a great learning tool. “It opens up conversations about saving, investing, and delayed gratification. Watching the balance grow can teach patience and long-term thinking.”

What if you’re not in a position to contribute much? “Absolutely start small,” O’Donovan reassures. “Even $5 a week can grow into thousands. It’s the consistency that matters, not the amount.” She shared some example strategies that show how powerful modest investments can be. For instance, a $5000 lump sum at birth could grow to $11,000 by 18, or regular $10 weekly contributions could result in about $14,000 (assuming a modest 4.5% annual return, not inflation adjusted) — thanks to that aforementioned compounding returns. 

“There’s no perfect time or perfect amount — just start where you can. Small steps can lead to a big difference.”As someone navigating the chaos of family life, that’s advice I can work with — I logged onto Simplicity and started the process for my kids.