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How much will $120 be worth in 20-30 years' time?


Marina's kids (aged three, five and 10) each have $120 in their bank accounts. If her kids continue to save $120 a year at 4% interest per annum, how much will they have by the time they turn 35?

  Three-year-old    Five-year-old   

10-year-old

Initial amount $120 $120 $120
Amount saved per year $120 $120 $120
Amount saved per month $10    $10 $10
Number of years 32 30 25
Interest payment frequency   Monthly Monthly Monthly
 

Amount saved

$3,960 $3,720 $3,120
Interest earned $4,237.66 $3,618.11 $2,346.95
Total amount saved $8,197.66 $7,338.11 $5,466.95


How much will a lump sum of $1,000 be worth by the time your child is 35?

Provided there are no withdrawals/deposits, the $1000 in the bank account would be worth:

  Three-year-old    Five-year-old   

10-year-old

Initial amount $1,000 $1,000 $1,000
Amount saved per year   - - -
Number of years 32 30 25
Interest rate 4% 4% 4%
 
Amount saved $1,000 $1,000 $1,000

Interest earned

$2,589 $2,313 $1,714
Total amount saved $3,589 $3,313  $2,714


Watch the video

Click here
to watch Rae, Nicci and Marina talk about how they're achieving their goals.



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Marina shares her tips on how to get kids excited about saving.

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How Westpac can help you and your kids save
Find out how Westpac can help both kids and adults save, including KiwiSaver options, savings games and online calculators.

What you need to know about KiwiSaver


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