Understanding KiwiSaver

Lesson Overview

Subject: Business Studies
Year Level: Year 9
Curriculum Area: Social Sciences – The New Zealand Curriculum
Level: Level 4
Duration: 55 minutes
Topic: KiwiSaver – Advantages, Disadvantages, and Key Terms

This lesson introduces Year 9 students to KiwiSaver, exploring its advantages and disadvantages. Students will understand key terms, reflect on the benefits of starting a KiwiSaver account early, and discuss the consequences of their financial decisions.

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Lesson Objectives

By the end of this lesson, students will be able to:

• Explain the purpose of KiwiSaver.
• Identify the advantages and disadvantages of KiwiSaver.
• Define key financial terms such as contributions, employer match, government contributions, withdrawal rules, and investment growth.
• Analyse the impact of starting earlier vs. delaying KiwiSaver contributions.

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Lesson Structure

1. Introduction (10 minutes)

Engage – Brainstorm Activity (5 minutes)

• Pose the question to students: "If you were given $20 every week to save or spend, what would you do with it?"
• Write responses on the whiteboard, categorising them into spending vs. saving.
• Introduce KiwiSaver by linking to the concept of saving for the future.

Define KiwiSaver (5 minutes)

• Explain what KiwiSaver is, using simple language (voluntary savings scheme, employer and government contributions, long-term investment).
• Provide a real-life example: “Imagine putting away $10 a week at age 14, and how it could grow by the time you're 65.”

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2. Learning Activity (20 minutes)

Group Activity: KiwiSaver Pros & Cons (10 minutes)

• Split class into six groups (4–5 students per group).
• Assign each group one aspect of KiwiSaver (e.g., government contributions, employer match, contribution percentages, early withdrawal rules, investment risks, long-term benefits).
• Each group researches and discusses their KiwiSaver aspect (using provided worksheets with prompts).
• Students present findings back to the class in a 1-minute explanation.

Impact of Starting Early – Interactive Simulation (10 minutes)

• Display a graph showing savings growth over time using different start ages (e.g., starting at 14, 25, and 35).
• Ask students to predict who will have the most savings at 65 years old.
• Discuss:
  • Why does compound interest matter?
  • Would they start a KiwiSaver account today if they could? Why/why not?

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3. Reflection & Discussion (15 minutes)

Debate: Is KiwiSaver Worth It? (10 minutes)

• Split the class into two teams: Team A (Supports KiwiSaver) and Team B (Against KiwiSaver).
• Each team prepares two arguments supporting their viewpoint.
• Have a mini debate, with each side presenting their reasoning.

Quick Write Reflection (5 minutes)

• Students write a one-paragraph reflection answering:
  • What is one new thing you learned about KiwiSaver?
  • Would you start one today? Why or why not?

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4. Wrap-Up & Homework (5 minutes)

• Summarise Key Learning Points (KiwiSaver = long-term savings, pros/cons, government/employer contributions).
• Homework: Ask students to talk to a family member about whether they have KiwiSaver and what they think of it.

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Key Competencies Developed

1. Thinking

• Students analyse financial scenarios to determine the best savings approach and reflect on future consequences of financial decisions.

2. Managing Self

• Encourages students to consider their financial future, make informed financial choices, and discuss financial planning with their whānau.

3. Participating and Contributing

• Discussions and group activities allow students to engage with real-world financial literacy, contributing to informed decision-making about personal savings.

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Curriculum Principle: Future Focus

This lesson aligns with the Future Focus curriculum principle as it encourages students to think critically about long-term personal financial management. By learning about KiwiSaver, students gain insights into financial security, developing habits that will benefit their future lives, careers, and economic independence.

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Extra Challenge (For Early Finishers)

• Research: What happens to your KiwiSaver if you move overseas?
• Create a one-minute advertisement encouraging other 14-year-olds to start KiwiSaver early.

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This structured financial literacy lesson is engaging, real-world applicable, and fosters long-term financial awareness in students, making it a valuable addition to the Year 9 Business Studies curriculum. 🚀✨