Baby On The Move's Guide to Preparing Financially for Your Baby in NZ
Welcoming a new baby is an exciting journey, but it’s also a time for crucial financial planning. The cost of raising a child in New Zealand can be significant, and we understand the importance of making smart financial choices without sacrificing your child’s safety and comfort. In this guide, we’ll provide essential tips to help you prepare financially for your baby’s arrival, drawing insights from reputable sources and offering our expertise at Baby On The Move.
Understand Your Current Financial Situation
Before embarking on your parenting journey, assess your current financial position. Budget calculators can help you track where your money is going. Identify regular expenses that could be adjusted or cancelled to free up funds for your growing family.
Embrace Hiring Over Buying and Versatile Products
Instead of buying certain baby equipment, consider hiring. Our hire services allow you to rent brand-new or well-maintained products at a fraction of the cost, without compromising on safety and quality. Babies quickly outgrow items; for example, capsules with bases are among our most popular hire items as they’re used for around six months. Additionally, opt for versatile baby products that adapt as your child grows, such as all-in-one car seats, adjustable high chairs and multi-functional gear.
Workplace Support for New Parents
If you plan to return to work after your baby’s arrival, workplace support can be invaluable. Although not mandatory, flexible work arrangements, continued KiwiSaver contributions, and professional development opportunities can ease the transition. These initiatives help you maintain industry skills, strengthen your value in the workplace, and reduce potential income gaps or interruptions to retirement savings, ensuring a more secure financial future for yourself and your family. Your workplace should be your partner in this journey, providing the support you need to thrive both professionally and personally.
From 1 July 2024, if you choose to make KiwiSaver deductions from your paid parental leave payments, Inland Revenue will also make 3% employer contributions.
Tap into Government Assistance
In New Zealand, the government offers various forms of support for new parents, including paid parental leave, Best Start payments, and Working for Families payments. These programs can ease financial pressure during early parenthood. Check your eligibility on the IRD website.
As of 1 July 2024, FamilyBoost was introduced to help eligible households pay for early childhood education (ECE). Eligible parents and caregivers can claim up to 25% of their weekly childcare fees, with a maximum of $975 every three months. You’ll need to pay upfront, keep receipts, and submit a claim to receive the refund.
Create a Baby Budget from our Baby Checklist
Follow our comprehensive baby checklist that outlines all the essential items you’ll need for your baby. Consider the guidance from our in-store experts, experienced parents and professionals to ensure you have everything required. You can refer to Baby On The Move’s Baby Checklist to help you with your planning.
Explore Money-Saving Strategies
Here are some creative ways to save as you prepare for your baby’s arrival:
- Consider hiring baby gear that your baby will quickly outgrow.
- Time your purchases to take advantage of sales and discounts.
- Use cloth nappies to save over $2000 over 2.5 years—they’re eco-friendly and reusable across multiple children.
- Cook and freeze meals in bulk to cut down on takeout.
- Breastfeeding, if possible, is both healthy and cost-effective.
- Focus on essentials and assess which products are worth it to you for the added convenience.
Plan for the Future
Think beyond immediate expenses and consider long-term goals. Assess if you’ll need a bigger car or home as your family grows. Review insurance policies to ensure family security in unexpected situations. Update or create a will, designating a legal guardian for your child if necessary.
Childcare Considerations
Childcare can be a significant expense for working parents. Explore various options and check for government support. Family members may also play a crucial role in reducing childcare costs.
Preparing financially for your baby’s arrival in New Zealand involves thoughtful planning and informed choices. Baby On The Move is here to support you, offering a range of baby gear and expert advice. Parenthood is a rewarding journey, and we’re committed to helping you make the best financial choices without compromising on safety and quality. Feel free to ask about our price-matching policy and Airpoints Partnership, as we’re eager to provide you the best value and rewards as you embrace this exciting chapter.
Congratulations on your upcoming bundle of joy!
