Kōkiri Learn

Background reading · Social Sciences

Cards, interest, KiwiSaver and scams

Some ways of paying spend your own money and some are borrowing. Interest can work for you or against you, and scammers are always looking for a way in.

There are more ways to pay than ever. Knowing which ones use your own money and which ones borrow someone else's is one of the most useful money skills you can learn.

Ways to pay

  • Cash: notes and coins. When it's gone, it's gone.
  • Debit card: takes money straight from your own bank account.
  • Credit card: borrows money from a bank. If you don't pay it back on time, you pay interest, often around 20% a year.
  • Buy now, pay later: splits a price into payments. Miss one and you may pay a late fee.

    • Interest works both ways

    Interest is the price of borrowing money, or the reward for saving it. When you borrow, interest is added to what you owe, and then interest is charged on that interest too. That is why debt can grow quickly. When you save, the same thing happens in your favour, only more slowly.

    KiwiSaver

    KiwiSaver is a savings scheme to help New Zealanders save for retirement. When you work, a small part of your pay goes in, your employer usually adds some, and the government may add a little each year. The money is invested, so it can grow over many years. You usually can't take it out until 65, except to help buy a first home.

    Scams

    A scam is a trick to steal your money or personal details. Warning signs include a prize you never entered, pressure to act fast, requests for passwords or codes, and payment by gift card. If you're unsure: stop, check with a trusted adult, and report it to Netsafe or Scamwatch.

    Sources and further reading

    Written for Kōkiri Learn students in our own words. Check facts against the sources.

    Used in: Our Money, Our Community