The Duke and Duchess of Sussex have a few things going for them that average new parents don’t: baby gifts from around the world. Magazines are asking for photos of the newborn. Staff.
But as Windsor’s new baby hits the headlines, hundreds of thousands more are also becoming parents and facing greater financial burdens because of it.
The exact cost of having a baby is the subject of fierce debate – in Britain the ‘total’ cost of a child over 18 for a two-parent family has been estimated to be £ 150,753 ($ 299,126).
In New Zealand, studies have suggested that a low-income family would spend $ 280 per week for two children or $ 480 for four. Those with higher incomes would spend $ 700 per week for two children or $ 1,100 for four.
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A 2014 study by Plunket, BNZ and Massey University found that the average parent spent $ 13,644 on a baby in the first year of life and $ 18,765 per year on toddlers, including child care. children.
This included $ 2,000 per year for a toddler’s food, $ 800 for clothing, and about $ 11,500 for child care.
Other things such as bedding cost over $ 1,500 and car seats, strollers and other accessories added hundreds to the bill.
Financial adviser Martin Hawes said a new baby usually requires a household budget overhaul.
Some new parents would need to reset their mortgages if their household income declined significantly, he said.
“If you only have 19 years left on your mortgage because you’ve been paying it off for six years, you can bring it down to 25 or just pay interest. It’s not desirable, but people are faced with pretty difficult choices at this point. “
He said that even when income returned to something more normal, there would be additional child care costs.
But he urged parents not to give up on KiwiSaver because of the government’s “free money” available in the Membership Tax Credit. Even those who were not working could get $ 521 per year in their accounts if they contributed $ 1,042.
Research firm IBISWorld estimates that childcare, clothing and footwear were the fastest growing areas of spending for New Zealand parents, up 60% between 2013/2014 and 2018/2019.
The company suggested that Kiwi families spent an average of just over $ 5,028 per baby last year on these expenses, up from $ 3,034.
Topping the list for revenue growth was the child care industry, which IBISWorld said earned $ 1.1 billion, nearly double the $ 582.6 million it earned there. five years ago.
Hawes said new parents should also think about their children’s future.
They could create a KiwiSaver account – some programs offer free accounts for people under 18 – and ask grandparents and other family members to contribute a few dollars a week. “It’s a time of great joy and excitement and it’s time to hit the family members.”