"At the time I decided, Harrison was still around and the plan was to raise money for him and his family."
After Harrison's death, Mr Knox approached Mr and Mrs Mundy to see how he could help and the idea to put it towards the trust fund was agreed on. Mr Knox said it was great to support developing surf lifeguards.
"In the light of recent events, training up new lifeguards seems more important then ever."
Mr Mundy said: "Harrison has passed on and Hayley and I thought it would be great to get some money and put towards something positive, like a legacy of sorts.
"We committed to doing it ourselves. There are other clubbies who have made noises about helping out and then Callum came on the front line and has just taken it on."
Mr Knox, who achieved the highest honour for surf lifeguards with the Advanced Lifeguard Award, will cycle more than 950km in eight days, finishing at the Mount Maunganui Surf Club.
The scholarship is aimed at helping aspiring young lifeguards reach their goals, whether that be financial assistance to buying a wetsuit or helping fund trips to Australia where they could learn from some of the best, Mr Mundy said.
Part of it was also continuing Harrison's memory.
"When Callum mentioned it to me, he was lucky he told me on the phone because I teared right up. It's these things when someone is doing this for you and they don't have to, they understand the importance of it, it's humbling," Mr Mundy said.
For Harrison
• On November 8, 2014, former Mount Maunganui lifeguard Callum Knox will cycle more than 950km from Christchurch to Tauranga in eight days.
• People can donate or find out more about the Riding Home for Harrison fundraiser on Givealittle.
• As of 3pm yesterday, more than $520 had been raised.
• All donations go directly to the cause.
• Harrison Mundy was 10 when he was diagnosed in July 2013 with Ewing sarcoma, a rare form of cancerous tumour that grows in bones or soft tissue around them.
• Harrison died in February this year after major community events including a race up Mauao were formed to help raise money for him.