Babies can be expensive! Obviously, how much you spend on a baby depends on your budget, what you buy new, what you borrow, what you are gifted and what you choose to buy second-hand. But here are some rough estimates of the upfront and ongoing costs you and your whānau may need to plan for.
- on a moderate-budget spend, parents may need around $390/week to raise a baby, or around $20,280/year
- on a higher-spend budget, this could increase to around $625/week
- food and nutrition supplies can cost around $1,650/year
- nappies, baby wipes and creams cost an average of $1,875/year
- childcare is by far the biggest cost, at an average of $16,000/year
- bedtime supplies are expensive, with an average of $1,600 upfront for a cot, mattress, mattress protector, sheets, baby monitor and portable cot
- a car seat, stroller and baby carrier average around $1,750.
For children aged one to three, costs often continue to grow, especially as food, clothing, shoes, childcare, activities and transport needs increase.
How having a baby can affect your income
When you're thinking about the cost of having a baby, it's not just about the things you'll need to buy. It is also about how your household income may change.
For many whānau, one parent may take time away from paid work after pēpi arrives. This can mean moving from a regular income to paid parental leave, or planning for a period where one parent has no income, if they are not eligible for paid leave or choose to take additional unpaid leave.
- the maximum paid parental leave payment is currently $811.05 per week before tax
- by comparison, median weekly earnings for women are around $1,247 before tax
- that's a difference of around $435 per week, or close to $11,300 over the 26-week paid parental leave period
- for parents who take a full year away from paid work, the second six months may be unpaid, unless they have other leave, savings or another source of household income to rely on
The good news is that planning ahead can help. Understanding both the upfront costs and the potential impact on your income can help you and your whānau feel more confident and better prepared as you prepare to welcome your baby.
Talking to a financial advisor can help you make informed decisions
