“In Term 2, they invest in a managed fund. This introduces the idea of risk. In Term 3, they can invest in New Zealand equities. This introduces the idea of companies. In Term 4, they are able to invest in assets from around the world. Exchange rates suddenly matter.”
Seymour indicated there would be regular tests of students’ knowledge, which would establish whether they could progress to more risky investments.
He suggested any returns could be placed in a student’s KiwiSaver, a credit on their student loan or be given to them in cash.
He proposed the initiative, which would cost about $30 million, could be funded from the roughly $600m KiwiSaver annual subsidy.
Seymour acknowledged some may be surprised to see Act supporting a policy giving teenagers money, but he argued the benefits would be realised.
“It’s also not a handout, but an investment in young Kiwis to grow their own wealth.
“In the long run, it will get our country out of its financial funk more powerfully than any policy of remotely comparable cost.”
Seymour said the idea wasn’t Act policy and he was hoping for feedback on how it could be fine-tuned.
Adam Pearse is the Deputy Political Editor and part of the NZ Herald’s Press Gallery team based at Parliament in Wellington. He has worked for NZME since 2018, reporting for the Northern Advocate in Whangārei and the Herald in Auckland.