The cost of raising a child in New Zealand
They’re our greatest gifts, our most cherished treasures – our children. And yes, they come with their own lovable financial challenges.
There’s no sugar coating it, kids come with a price tag. In fact, some Kiwi parents are having fewer kids due to the financial pressures of raising them. It’s no surprise that our Kiwi Parenting Report found that financial stability and providing for our children’s future was the number one concern for parents.
It all begins with the cost of having a baby. But the question still remains – what is the average cost of raising a child in New Zealand? If you’re considering starting or growing a family, or are already expecting, it’s good to start with an idea of how much you might expect to spend over the coming years, so you can prepare accordingly.
The total financial impact of raising a child in New Zealand
The cost of raising a child isn’t set in stone, it depends on things like where you live, how you like to parent, and whether your family holidays look more like a quick roadie or a big overseas adventure.
Average cost of raising a child
While it’s well known that a child’s expenses change as they grow, understanding these stages can make planning easier. From the ages of one to three, parents spend an average of $16,000 per year.
Once those kids reach primary school age, they could cost somewhere in the vicinity of $8,000 to $16,000. However, that number is (a lot) higher for families who send their kids to private school.
Breaking down the costs: Key expenses for parents
So where is all of that cost coming from?
The key expenses for parents include basics such as childcare, housing, education, food, and extra-curriculars. And hopefully not replacing any expensive items they might break along the way.
Childcare
Our Kiwi Parenting Report found that the cost of childcare influences close to nine in ten households’ decision about returning to work and work hours. Unfortunately, we have some of the highest childcare costs in the world, with the average couple spending 23% of their income on childcare (for average wages and two kids).
Before subsidies, the average cost of childcare in New Zealand is estimated at $60 per day. That works out at a little over $300 per week, or approximately $15,600 per year. Of course those costs vary depending on your region, but are a good indication of one of the largest line items associated with having kids.
Education
Technically speaking, public school through the primary and secondary years is free for all New Zealand kids.
However, some schools will ask for specific donations each school year to help cover costs. These donations vary by school and by the number of children you have enrolled, but one study found that they averaged $358 per student per year in 2023. Of course, private schools will charge considerably more.
On top of potential school donation fees, education costs can also include uniforms, books and textbooks, backpacks, camp and excursion fees, extracurricular activities, travel costs, technology, and other fees.
Extra-curriculars
They say money can’t buy happiness, but have you ever seen a kid with an ice cream cone?
Extra-curriculars are just as important for a developing child, whether that’s for their physical health and fitness on a sports team, or their social development for group events.
It’s hard to put an exact price tag on extra-curriculars, but let’s just say that parents looking to save a few dollars should avoid hitting the slopes in winter – snowboarding is addictive!
Financial support for parents: What’s available in New Zealand?
Here’s what you’ve been waiting for – the good news. There is help available, and it comes in many forms.
Working for Families
One of the key supports for parents is Working for Families, which includes the Best Start payments. These are tax credit payments, and are determined by:
- How many dependent children you have
- Your total family income
- How many hours you and your partner work each week
- The type of income you get
You can use this calculator to get an estimate of how much you might be entitled to.
Childcare Subsidy
The Childcare Subsidy is available for parents to help pay for the cost of childcare for kids in preschool.
The amount of subsidy you can get will depend on:
- Your income
- The size of your family
- How many hours per week your child is in childcare
- The amount and type of childcare fee
Paid parental leave
New Zealand parents caring for new babies or young children can take a total of 26 weeks (6 months) of paid parental leave.
The maximum amount you can be paid is currently $788.66 per week, but the exact amount is determined by your ordinary income.
This leave can begin ahead of the expected birth date if necessary. And typically, the mother is the one entitled to the paid parental leave (as the primary caregiver), but she can transfer some of her leave to her partner if they are eligible.
Planning for the future: Budgeting tips for raising a child
Raising kids comes with a price tag, but also with the greatest gift you could possibly ‘buy’. For families who want nothing more than the pitter patter of little feet lighting up their lives, financial planning is key.
As well as carefully saving and planning for a family, another important step is to consider your life insurance options. OneChoice Life Insurance can provide financial support to your loved ones, should the worst happen.
3 Oct 2025