GrownUps New Zealand

The Cost of Kids

 Read more Oily Rag articles by Frank and Muriel Newman 

Kids – we can’t do without them but they do cost a lot to keep! Exactly how much is something most of us would be too afraid to ask – and it’s not all that simple putting an exact figure on it because there are so many what ifs, and maybes. It seems how much we spend on our kids depends a lot on how much we have available to spend on them.

A number of studies here and overseas have tried to pinpoint a figure. Just taking the averages, it looks like the cost of raising two children to the age of 18 is between 20 to 25 percent of a two income household. In dollar terms that’s somewhere between $13,000 and $16,000 a year for the average New Zealand household income of $64,000 a year.

This percentage looks to be fairly consistent across the different income levels with accommodation, education, healthcare, childcare, and transport costs all increasing, with higher household incomes. The most expensive years are when the kids are between the ages of 12 and 14!

Here are a few oily rag tips for keeping the cost of kids down:

Share your tips on keeping the cost of kids down with others by visiting the oily rag website (www.oilyrag.co.nz) or write to Living off the Smell of an Oily Rag, PO Box 984, Whangarei.

* Frank and Muriel Newman are the authors of Living off the Smell of an Oily Rag in NZ. Readers can submit their oily rag tips on-line at www.oilyrag.co.nz. The book is available from bookstores and online at www.oilyrag.co.nz.