How $20 a Week Could Grow Into $100,000

How $20 a Week Could Grow Into $100,000

Why Starting KiwiSaver as a Teen Is a Game-Changer

When you’re a teenager — or the parent of one — retirement isn’t exactly the hot topic around the dinner table. There are part-time jobs, schoolwork, social lives, and decisions that feel far more immediate. But here’s a thought worth pausing for: what if your teen could quietly set themselves up with more than $100,000, simply by starting early with a small, consistent habit?

That’s not a gimmick. It’s the real, long-term impact of something called compound interest and KiwiSaver is the perfect vehicle to make it work.

The quiet power of compound interest

Compound interest is often described as one of the most powerful forces in finance. It means your money earns returns, and then those returns start earning their own returns. Over time, that snowball effect can turn modest weekly contributions into a serious long-term nest egg.

Take this example: if an 18-year-old puts just $20 a week into KiwiSaver, and sticks with it until they’re 65, they could end up with well over $100,000. That’s assuming average long-term returns — and no windfalls or big investments. Just consistency and time.

What’s remarkable is that they’ll only have contributed around $48,000 themselves. The rest? That’s compound growth quietly doing its job.

Why starting young changes everything

Time is the one thing young people have in abundance. And when it comes to saving and investing, time is a powerful advantage. The earlier someone starts, the more years compound interest has to work — and the less they need to contribute to achieve the same results.

That’s why starting in your teens or early twenties is such a game-changer. It’s not about being wealthy — it’s about being wise, early.

KiwiSaver is a head start, not just a savings account

For teens earning a part-time income, KiwiSaver is straightforward to join. A small percentage of their pay is automatically set aside — and in many cases, their employer contributes too. Even if they’re not working yet, parents or caregivers can help by contributing small amounts regularly. Think of it as planting seeds for the future.

Better still, KiwiSaver isn’t just for retirement. It can also be used to help buy a first home, giving teens even more motivation to get started now and grow their savings with purpose.

The role parents can play

Most teens won’t stumble across these ideas on their own. Parents and caregivers are often the spark that gets the conversation going. Explaining how a small weekly habit could one day unlock a first home or a comfortable retirement is a powerful message.

If you or your teen are ready to get started, we’re here to help. Our advisers can guide you through the options, help you choose the right fund, and show you how to make the most of this opportunity.

Book a no obligation chat

Disclaimer: This article has been prepared for the purpose of providing general information, without taking into consideration any particular person's objectives, financial situation or needs. Any opinions contained in it are held by the author as at the report date and are subject to change without notice.