Parents and grandparents often want to set aside funds for their young children so they can be used to help further their later education or for some other worthwhile purpose.
Here are some useful tips on how to do it in the best possible way.
First, consider the investment time frame. When is the earliest point you would wish the child to have access to the funds? If there is at least a five-year time frame then some of the funds should be invested in assets that will grow in value over time, such as shares.
For a shorter period, more stable assets such as term deposits may be more appropriate.
Putting funds into KiwiSaver is an option, however, the funds will only be accessible if they buy a first home, reach the official retirement age, leave the country or suffer hardship.