Budgeting with a new baby.

A new baby is a cause for celebration, but you’re probably aware they do require some pretty big adjustments to your life. Suddenly you’ll face a list of brand-new expenses, including nappies, strollers, toys, car seats and more. A baby typically costs a New Zealand family between $8,000 and $16,000 each year. That can be particularly tough if your family is on a reduced income. But careful spending and money management can make an enormous difference.

What do your finances look like now?

To meet extra baby costs, the first step is to know your current financial position. Budget calculators can assess your income and expenditure, so you know where your money’s going and there are plenty to check out online, including ours. Think about those regular spends that you might be able to cancel or adjust like subscriptions or switching utility suppliers to save money or watch our video tips for more ideas.

Embrace hand-me-downs

It feels lovely to buy everything new for your beautiful baby. But babies don’t care if they’re in a new stroller or a second-hand one. Some items are best bought new for safety reasons, such as car seats. However, there are plenty of other items where buying second-hand saves money without compromising on performance – clothes, toys and books are great examples. There are many websites that can guide you on what you really need, and what is recommended to buy new rather than second hand, such as The Parenting Place. Once you’ve got your list together, use our savings calculator to figure out how much you need to regularly save to reach your goal.

Support your career

If you think you'll return to work at some point then keep up-to-date with what’s happening in your industry and take any opportunities to upskill, such as webinars or online courses. If you are on parental leave from your job, stay in touch with your workplace. While this won’t help with your immediate cashflow, by supporting your career you are potentially boosting your future earnings.

Financial help from the New Zealand Government

As well as paid parental leave, after the birth of your child you may be able to access the Best Starts payments or Working for Families payments. There’s also help for sole parents, young parents, parents of multiples and babies that need ongoing medical care. Find out what you are eligible for with an online questionnaire on the SmartStart website.

We can help.

Setting up a savings account in your child’s name

Having a bank account for your child allows you to set aside money for them, and one day can become a great tool to teach them how to save.
Savings account options

Westpac KiwiSaver Scheme

Consider if you can continue contributing to your KiwiSaver account, as this is a great way for you to ensure your future. The more you contribute, the more your money grows.
Westpac KiwiSaver Scheme

Protect your family

Having a baby tends to give you a new perspective on life. It’s a great time to ensure your family and your assets are protected. You might be reviewing existing life or contents insurance cover levels or taking insurance for the first time.

Insurance options

Flexible mortgage repayment options

Our home loan management options could help you manage your cashflow, from reducing your repayments to paying off your loan faster. 

Managing your home loan

Things you should know.

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