Why addressing child poverty is an investment in New Zealand’s productivity

Sir Ian Taylor's recent call (Otago Daily Times) for Kiwis to share even a portion of their superannuation with charities tackling child poverty is more than just a generous gesture, it’s a strategic move to strengthen New Zealand’s future. Poverty isn’t something most of us see in our daily lives, but its effects are felt across the whole country. When children miss out on basics like healthy food, stable housing, and decent schooling, it’s not just a burden on them, it’s a burden on all of us.

Poverty as an economic drag

If we treat child poverty as a niche concern, someone else’s problem, we miss a truth that NZIER’s latest research highlights (Business Productivity in New Zealand, 2024) - underinvestment in human capital is a key factor behind New Zealand’s lagging productivity. When we allow deep pockets of disadvantage to persist, we shrink our talent pool, weaken our pipeline of future leaders and skilled workers, and limit our economic potential.

Investing in children at risk of poverty directly addresses these issues. Helping more young people achieve higher levels of education is one of the clearest ways to lift national productivity. When these young people enter the workforce with strong qualifications and skills, we gain a more innovative and adaptable economy, exactly what NZIER says we need.

The reality behind the statistics

Anyone who’s looked at our tertiary-entry data knows there’s a stark gap between students from high decile and low decile schools (now replaced by the Equity Index which estimates how much socio-economic barriers affect students' ability to succeed in school). At some schools with students with greater socio-economic barriers (higher Equity Index schools), only 15% of students gained University Entrance last year, compared to 70% at lower Equity Index schools.

This educational gap means fewer doctors, engineers, and teachers coming from our most under-resourced communities. Research shows that many scholarships end up going to students who already have numerous advantages, which only compounds the cycle of inequity. Worse still, families living in poverty often can’t see beyond the next bill, which puts any long-term investment, like tertiary study, out of reach.

A broader vision for support

Elizabeth Greive MNZM and the team at Share My Super have shown the power of collective giving, channelling superannuation from those who can afford to share it into organisations working on the frontline of poverty. Their model ensures that every cent goes directly to impact-driven charities like First Foundation, which provides scholarships, mentorship, and work experience to young people who would otherwise struggle to access higher education.

Sir Ian’s suggestion is one way individuals with financial security can make a meaningful difference right now. But it doesn’t absolve government of its responsibility to ensure all children get the support they need to thrive. Child poverty can’t be solved overnight, it’s a long-term, complex challenge that requires careful policy, sustained leadership, and well-coordinated community efforts.

Still, private initiatives are powerful catalysts. First Foundation, like Share My Super, ensures that philanthropy is more than just financial assistance, it’s an investment in people. Our model provides financial support, but crucially, it also offers mentorship and professional experience, equipping young Kiwis with the networks and skills to succeed in the workforce. The ripple effect of this is profound, as these students graduate, enter organisations, and become leaders, they uplift not just themselves, but their families and communities as well.

Breaking the cycle, boosting productivity

International studies point to the power of economic connectedness, the relationships and networks that help people rise out of poverty. When young people from disadvantaged backgrounds have the chance to make friends, learn from mentors, and access the same opportunities as their lower Equity Index peers, the long-term gains can be huge. They’re less likely to fall through the cracks, and more likely to contribute to New Zealand’s future as skilled professionals, entrepreneurs, innovators, and community leaders.

This isn’t just about charity. It’s about investing in our collective potential. Every dollar we put into eliminating child poverty, through direct donations, targeted scholarships, better housing, or more robust healthcare, has a ripple effect across the whole economy. We reduce the social costs of poor health, unemployment, and crime, and we boost productivity by growing a workforce that’s healthier, more educated, and more creative.

A call to action

Sir Ian’s approach is Kiwi pragmatism at its best. “We can whinge and moan and complain to the government, or we can do something about it.” The truth is, we need both, bold policy and bold communities, to fix child poverty. If even a fraction of those who can afford it decide to share some of their super, we will unlock resources that can keep more kids in school, support them through tertiary study, and prepare them to lead.

At First Foundation, we believe philanthropy should be personal, transformative, and focused on impact. Our supporters don’t just fund scholarships, they invest in a student’s full journey, helping them break through barriers and into careers where they can give back. This isn’t about handouts, it’s about creating a highway to a high-wage economy, ensuring that all young Kiwis, no matter where they start, have a fair shot at success.

Poverty is complicated. But it’s our shared responsibility to address it. With a mix of government commitment, private giving, and community-led solutions, we can tackle the injustice of child poverty in a way that also lifts New Zealand’s productivity and wellbeing.

For those of us who don’t need every cent of our super, this is our chance to back the talented, resilient young people who are keen to succeed, thrive, and lead.

Because in the end, investing in our children, especially those in our most invisible communities, is an investment in Aotearoa’s future success.

Sir Ian (Ngāti Kahungunu, Ngāti Pahauwera) is sharing his Super to give New Zealand’s forgotten moko the same chances in life that his own grandchildren have. If you don’t need your Super, join him and invest it in our future generation. https://vimeo.com/1055434970

https://www.sharemysuper.org.nz/