SavY Workshop at Level 3 Finance
On Wednesday 4 June, our Level 3 Finance students had the privilege of attending a dynamic and insightful workshop delivered by SavY — a student-led initiative from the University of Auckland. This free workshop was tailored specifically for Finance and Accounting students and covered a range of essential financial literacy topics, including investments, banking, savings, and KiwiSaver.
Understanding Investments: Risk and Reward
The session began with an engaging overview of different types of investments. Students learnt about:
- Shares (Stocks): High-risk, high-reward investments where individuals buy ownership in companies.
- Bonds: Generally lower risk than shares, bonds are essentially loans to governments or corporations with fixed interest returns.
- Managed Funds: A pooled investment managed by professionals, offering diversification but varying in risk depending on the fund type.
- Property: A tangible investment with potential for long-term growth but also associated with high entry costs and market fluctuations.
- Term Deposits: Low-risk savings options with fixed interest rates over a set period.
The workshop emphasized that while higher-risk investments can yield greater returns, they also come with the potential for significant losses — a crucial concept for budding investors.
Banking and Savings: Choosing the Right Account
Students explored different types of bank accounts and their benefits:
- Everyday Accounts: Designed for frequent transactions, often with low or no interest.
- Savings Accounts: Offer interest on deposits, encouraging long-term saving habits.
- Term Deposits: Lock in funds for a fixed term with a guaranteed interest rate — ideal for disciplined savers.
The importance of comparing interest rates, fees, and accessibility was highlighted to help students make informed banking decisions.
Demystifying KiwiSaver
A major highlight of the workshop was the deep dive into KiwiSaver, New Zealand’s voluntary, work-based savings initiative.
Key takeaways included:
- Employee Contributions: Individuals can contribute 3%, 4%, 6%, 8%, or 10% of their gross salary.
- Employer Contributions: Employers are required to contribute a minimum of 3%.
- Government Contributions: The government matches 50 cents for every dollar contributed by the employee, up to a maximum of $521.43 per year.
Students learnt how KiwiSaver can be a powerful tool for retirement planning and even for purchasing a first home.
Wrapping Up with a Quiz
To reinforce the learning, the SavY team wrapped up the session with a fun and interactive quiz. This not only tested students’ understanding but also sparked lively discussions and peer learning.
A Grateful Acknowledgment
We extend our heartfelt thanks to the University of Auckland and the SavY team for delivering such a valuable and engaging workshop. Our students walked away, not only more informed, but also inspired to take control of their financial futures.
~ Mrs G Kaur