By Maraea Gowens

Real talk: talking about money can be awkward as. For many of us, it is easier to talk about who is hot or not at Te Matatini than to talk about investing, savings and all the financial jargon… But here is the secret: our tīpuna were investors long before Pākehā even set foot onto Aotearoa. Even though they didn’t have a clue about stock markets or portfolios, they did know how to invest in resources that would benefit the entire hapū and iwi, ensuring that their people had the skills and means to thrive. Building generational wealth for our mokopuna doesn’t have to be reserved for the finance bros and rich investors yelling at lines on a TV; it can start with small steps that compound, building your money over time.

So let’s talk pūtea – Māori style.

Investing 101

Chances are if you have a Kiwisaver set-up, you are already an investor. Congratulations! KiwiSaver is a savings and investment scheme that helps people all over Aotearoa save for their retirements. You choose how much percent you want deducted from each pay, and your workplace will also match a minimum 3% that goes right into your KiwiSaver account. Providers then take your KiwiSaver money and invest it into national and global companies and assets to get you a better return on your money. Over time your money grows and compounds to hopefully ensure that you have some pūtea to cover you at retirement.

Although KiwiSaver is a great start to joining the world of investing, there are some other small steps that we can take (even as poor students) to make our money grow; this is called diversifying our investment portfolios.

New Zealand has a lot of investment platforms; each platform has a unique collection of shares and funds that you can buy. Sharesies and Kernel are popular investing platforms for New Zealand companies, and Hatch offers access to US companies as well. When you buy shares, you will sign up for your preferred investment platform, choose what company you think will create the best return for your money, and buy! Shares will rise in value when a company is doing well and fall in value when the company is doing poorly. Sometimes companies will pay you back a portion of profits; these are called dividends.

There are two main ways to invest: buying shares and buying ETFs. A share is a tiny portion of a company. Imagine that the company is a giant boilup pot, when you buy a share, you are essentially buying a little section of the boilup, you now own that portion. If the company performs super well, they can add more bacon bones, doughboys, and watercress; the value of your boilup portion then increases. This means when you eventually sell your portion, it has increased in value, so you earn money on your original investment.

ETFs (Exchange Traded Funds) are like a big pool of shares and assets squished into one. You can invest money into an ETF, and it will spread it across a range of different companies/shares (eg. if you invested $10 into an ETF with 50 companies, it would invest a portion of your $10 into each company). ETFs are a good way to diversify your portfolio, as your money is split across a range of different investments rather than just a singular company.

To summarise,
Shares = little ownership stakes of a company that you now own
Funds or ETFs (Exchange Traded Funds) = a diversified portfolio packaged into a single investment product
Dividends = company profits that are paid back to the shareholders

Now that we have the basics explained, how can you start wealth building? #landback

Start Small
With platforms like Sharesies and Kernel, you can set up automatic payments that go out each week and automatically invest into a share/ETF of your choosing. Simply research what investment aligns with your personal uara, set up a payment that fits within your means and let your money grow, baby!
Let’s be real, I am in the trenches of student life and do not have hundreds of dollars to be throwing at investments. My AP is set up for $10 a week (less than I spend at Sues) and goes straight out and into my favourite ETF. I don’t notice it going out, and it manages itself for me. My money is growing, and I don’t have to lift a finger! This is called passive income, and it’s how millionaires make their money grow by itself.

We in it for the long run fam (not the get-rich-quick)

You know that one cousin who swears they know a crypto scheme that can double your money in a week? Yeah, nah, that isn’t what I am getting at here. For most of us building generational wealth is about planting seeds to grow over time, kinda like how we all wish we bought a house fifty years ago when they were cheap as, except this time we are thinking ahead so in fifty years we only get to grow our investments for the next reanga. Generational wealth isn’t a race. Māori have been devastated by the imposition of a capitalist society for hundreds of years; it is time to turn the tables and work the system.

There is a saying that goes, “Never invest any money you can’t afford to lose,” and whilst this is true, when we can create a diverse portfolio made up of a range of different shares and ETFs, we have a greater chance of our money slowly working and growing over time. Investing in small amounts that fit within our lifestyle means that in twenty years we can look back, and our $5 weekly investments now have the potential to grow to thousands of dollars with time.

Tikanga of investing

Investing with a tīpuna-led, mokopuna-driven lens means that your investments won’t just build assets for yourself and future whānau but also ensure that your pūtea is going towards funds that align with your values. There are so many different choices when it comes to deciding where we want our money to go, so it is crucial that you make decisions that align with your personal values and beliefs.
A way that we can exercise our mana motuhake within the realm of investing is ethical funds and ETFs. This means that your money goes to companies that combat environmental degradation, social harm, and corporate governance issues. Most investment platforms have ethically conscious shares and ETFs that invest in companies and projects that promote positive impacts on our society and environments. Ethical funds can align with the value of kaitiakitanga, staying away from harmful industries like fossil fuels, weapons, tobacco and alcohol.

Leave your legacy

Ko ngā wheako te kaiako matua, experiences are the most important teacher. Rangahau will only take you so far in the world of investing; it is through actioning the rangahau that you can learn what works and what doesn’t work as you embark on your generational wealth-building journey. Creating assets and building passive income is not a far-fetched dream for the rich and wealthy; it is achievable with knowledge and patience. The great feats of our tīpuna were done with the collective hapū and iwi in mind. They traversed oceans and fought to retain their mana motuhake against all odds. Financial knowledge is power; it may be your key to breaking cycles of generational poverty and building a meaningful and lasting legacy.

For our babies.

Disclaimer: I am not a financial advisor, this article is not financial advice. Please don’t be koretake and do your own research before putting money anywhere.