The cost of raising a child by age and stage
This article was created in collaboration with Rupert Carlyon, the founder of KiwiSaver provider Kōura Wealth and father of three.
In today’s world, raising a child to the age of 18 costs us somewhere near $280 - $300K. That can seem like a scary lump sum, but if we break it into annual costs by age and stage, it’s more palatable - and makes for much more realistic and achievable budgeting for parenthood.
There are also a few surprise expenses that can catch first-time parents off guard. With a bit more visibility about what you can expect, you can soundly plan for tackling these.
The first year (age 0-1)
Childcare: $7,800
Based on the average cost of $300 per week for 50 hours of care for 6 months.
Top tip: How much you’ll actually spend on childcare in the first year of your child’s life depends on if/when you return to work. Childcare costs can range from free to over $100 per day, and many centres have waitlists, so it’s worth looking into this while you’re pregnant if returning to paid work is on the cards.
Looking for childcare? See Crayon Conversations: the cost of childcare.
Not sure about going back? See The economics of returning to work.
Baby gear: $4,500
Based on mid-range spend for essential and useful-to-have items.
Top tip: Becoming a new parent can be overwhelming, and it's hard to figure out what you truly need. Your child will likely outgrow most of their baby gear within the first 1-2 years. In the case of clothes, your baby will likely cycle through at least three sizes in the first 12 months alone. Be thoughtful about what you need and consider buying second-hand (here are Plunket’s safety tips for used baby goods).
Baby stores often have sales, but avoiding unnecessary purchases is still better than taking advantage of a “30% off” deal. For items you’re unsure about, do the research while you’re pregnant, note down your preferred model, and if it turns out you’d like to buy it later, it can be at your doorstep within a couple of clicks.
Nappies and wipes: $1,600 per year
Based on mid-range disposable nappies and wipes.
Top tip: you’ll be changing around 6,000 to 7,000 nappies until your child is potty trained, generally between 2 and 3 years of age. Consider the all-in cost of reusable diapers and/or wipes, which can collectively save you $3,000 over this period of time, although you have to trade that off against your time.
Common surprise expenses
A bigger house and a larger car: new parents often want more space for their growing family or to move into a more family-friendly area. SUVS are also cars of choice for families to cart baby gear around and avoid bending down whenever they get their child in and out of the car. Read our article, Find your family home: A wish list for parents, which provides information on what to look for if you’re hunting for a new family home.
Life and income insurance: The weight of financial responsibility for a baby can lead parents to put financial safety nets in place.
Classes: These are an increasingly popular way for new parents to socialise and engage their child. They can add up quickly, too. For example, Baby Sensory classes cost $175-220 per term, and swimming classes are $10-20 per lesson. Many free playgroups are available.
You’ll find more detail on the hidden and surprise costs of having a child in this article.
Toddlers and Preschool (age 1-4)
Childcare: $15,600 a year
Based on the average cost of $300 per week for 50 hours of care for 12 months.
Top tip: You may be eligible for:
The 20 Hours ECE subsidy once your child turns three
FamilyBoost if your family income is below $180,000 a year combined before tax
For a more detailed breakdown on childcare costs, read our article on The Cost of Childcare.
Housing: $7,800 per year
Based on a $150 weekly difference in median rent due to moving from a 1-bedroom to a 2-bedroom flat. We note the cost of raising a child can vary significantly depending on where you live in New Zealand.
Top tip: You may not need to upgrade your digs in the first year, as parents can share their bedroom with their baby for 6 to 12 months. However, as babies become more aware of their surroundings, many parents move them into their own room, at which point, an extra bedroom is required. Our article Find your family home: A wish list for parents provides information on what to look for if you’re hunting for a new family home.
If you have more than one child, you may want them to share a room while they are young. Generally speaking, the recommended age for each child to have their own room is between 8 and 10, although we know that’s not an option for everyone.
Investigate government support options, such as Accommodation Supplement if renting, or First Home Grants and KiwiSaver withdrawal options if buying. Consider whether the stability of homeownership or the flexibility of renting better suits your growing family's needs.
Food: $2,700 per year
Based on the University of Otago’s New Zealand Estimated Food Costs 2023 for a child aged between 1 and 4 on a moderate budget of $53 per week.
Top tip: It pays to do some due diligence on grocery-saving tips (example here).
Common Surprise Expenses
Babysitting fees: You might need extra coverage because you need child-free time. For example, you need to work, but your child is sick and can’t go to daycare. And yes, this can also make your date night extra expensive.
Breakages: Those little tykes can be surprisingly destructive, whether they break gadgets, draw on walls, or damage the floors while hooning around on a scooter.
Classes: Ballet, soccer, gymnastics, art…the list can go on.
Travel: Up until age 2, your child can ride on your plane ticket. From that point onwards, you’ll be buying them their own seat.
Middle Childhood (age 6-12)
Housing: $7,800 (plus another $7,800 if you have two kids by now)
Based on a $150 weekly difference in median rent due to moving from a 1-bedroom to 2 2-bedroom flat and then from a 2-bedroom flat to 3 3-bedroom house.
Top tip: See our top tip for Toddlers and Preschool above.
After-School Care and School Holiday Programs: $5,500
Based on the average after-school care fees ($20 per day for 5 days/wk for 40 school weeks/yr) and the average school holiday program costs ($50 per day for 5 days per week for 6 weeks of the year). This assumes you and your partner use 6 weeks of annual leave between you for the other 6 weeks of school holidays.
Top tip: You may be eligible for OSCAR subsidies to help with after-school care costs. Alternatively, consider whether you can work flexibly some or all of the week, band together with other parents, or get grandparents or whānau involved.
Food: $4,100
Based on the University of Otago’s New Zealand Estimated Food Costs 2023 for a child aged between 5 and 10 on a moderate budget of $79 per week.
Top tip: See our top tip for Toddlers and Preschool above.
Common surprise expenses
Entertainment: This might include extra subscriptions (hello, Disney Plus) or family activities.
Christmas, birthday parties, and gifts: Even for parents who aren’t extravagant, the cost of attending birthday parties regularly, hosting one once a year, and buying presents under the Christmas tree can add up quickly.
Activities: In addition to the price of classes (sports, music, dance, drama, or art), there’s also the equipment and materials, plus petrol costs to get there.
Private education: Catholic schools charge compulsory attendance dues of $402.50-$626 per year for primary school students, depending on your region, plus donations on top of $500-$1,000. Independent primary schools charge fees between $10,000 to $25,000 per year.
School-related costs: Uniforms, stationery, class trips and camps, teacher/class gifts, random supplies for school projects, etc.
The Teen Years (age 13-18)
Housing: $7,800 plus another $7,800 if you have two kids now
Based on a $150 weekly difference in median rent due to moving from a 1-bedroom to a 2-bedroom flat and then from a 2-bedroom flat to a 3-bedroom house.
Top tip: See our top tip for Toddlers and Preschool above.
Food: $5,700 per year for an adolescent child
Based on the University of Otago’s New Zealand Estimated Food Costs 2023 for an adolescent child on a moderate budget of $110 per week.
Top tip: See our top tip for Toddlers and Preschool above.
Transportation: $1,500 to $2,500 per year
Based on driving lessons, vehicle maintenance, fuel, and higher car insurance premiums for teen drivers.
Top tip: Getting your teen to carpool or take public transport can reduce costs. You may also want them to fully fund or contribute to a car purchase, which is a good way to build that savings muscle.
Common surprise expenses
Medical expenses: Common procedures include tonsillectomy ($4,000-$5,600), endometriosis surgery for young women ($9,800-$18,000), and braces ($6,000-$10,000).
Private education: Catholic schools charge secondary school students compulsory attendance dues of $626-$1,500 per year, depending on the region, plus donations of around $1,200. Independent secondary schools charge around $25,000 per year in fees.
Extra school-related costs: In addition to any tuition fees, parents should also budget for:
Uniforms: Costs can range from $300 to $600 annually, depending on the school.
Class trips and camps: Multi-day camps, international trips, or specialised programs can range from $500 to $1,500 annually
Extracurricular activities: Sports, arts, and academic programs can add an additional $500 to $1,000 per year.
School donations and fees: Many schools request annual donations, ranging from $100 to $500, to support facilities and programs.
Devices: The school might require a device.
Tutoring: You may find that your child needs extra assistance outside of the classroom. Tutors cost $20-80 per hour.
Clothing: Suddenly, your tween is in adult clothing and shoes, which are generally more expensive than kid stuff.
Final note on financially planning to have a child
This article was not intended to scare or put you off, but to help you position your family for less financial. Research shows that despite the significant expense, children have "a very small impact upon wealth accumulation" over the long term. With thoughtful planning and awareness of available support systems, managing the financial aspects of raising children is possible.
Now for the important legal part: The information we provide is general and not regulated financial advice for the purposes of the Financial Markets Conduct Act 2013. Please seek independent legal, financial, tax or other advice in considering whether the content in this article is appropriate for your goals, situation or needs. The information in this article is current as at 16 May 2025.
Stephanie Pow
Founder & CEO of Crayon
Rupert Carlyon
Founder & Managing Director of kōura