Your family budget

Making ends meet to achieve family goals.

With any family budget, the first priority is to make sure that money going out doesn’t exceed money coming in. Once that basic rule is under control, you can fine-tune your budget and move towards family goals, such as buying or upgrading a house, getting a new car, or saving for a big holiday.

Creating a basic budget

Our managing debt section can help you work out where your money goes, identify your financial goals, create a budget and find ways to boost your income.

Reducing your family expenses

If money seems to melt away in your household, here are some strategies to keep you on the right path:

  • Plan the week’s meals around economical foods. Make a shopping list of what you need and stick to it. Buy house brands as much as you can
  • Look for specials and use coupons, but only for things you really need
  • Buy seasonal fruit and vegetables, so you’re not paying extra for imported produce
  • Make your own cleaning products – the internet is full of recipes for effective home-made cleaners
  • Encourage kids to make their own lunches instead of buying food at school
  • Be firm about pocket money – once it’s gone, there’s no more until next week
  • Shop when you really need something, not for entertainment
  • Get your reading material online and from the library, so that you won’t need newspaper and magazine subscriptions
  • Swap outgrown children’s clothing and toys with other families
  • Join a car pool and cut your petrol costs. Take a look at jayride.co.nz – a specialised transport-sharing site
  • Switch electrical appliances off at the wall. If there's a light glowing, you're using power even when you’re not using the appliance. You’ll find more power-saving tips at consumer.org.nz/powerswitch
  • Instead of eating out at a fancy restaurant for a special occasion, have a home gourmet evening. You'll gain new culinary skills and save money
  • Cut out the takeaway night and junk food – they're an expensive way to eat. Make home-made pizza and popcorn instead

Review your mortgage

Mortgage payments are a major expense for most families, and there could be times when repayment amounts are just too high for comfort. When money is tight, it could help to extend the term of your mortgage to bring payments down. Likewise, when you have extra in your budget it can help family finances if you increase repayments or make a lump sum payment to reduce principal and shorten the term of your mortgage.

Take a look at our home loans section for calculators and more information.

Financial help from the government

The government initiative ‘Working for Families’ is designed to make it easier to raise a family in New Zealand. It provides thousands of New Zealand families with various kinds of financial support. Check out workingforfamilies.govt.nz for information about:

  • Tax credits
  • Accommodation supplements
  • Childcare subsidies

Cheap family entertainment

Family entertainment doesn’t have to cost a lot. All you need to do is pack a picnic basket, a bat and a ball - parks and beaches are free, and New Zealand has some of the best in the world. Check out these other ideas for cost-effective family fun:

Toy libraries

There are toy libraries throughout the country and they solve two problems – the cost of buying toys and the risk of ‘toy boredom’. Toy libraries aren’t run for profit, so the rental rates are low. And by renting toys and puzzles for your children, there will always be something new to play with. Look for your nearest toy library at toylibrary.co.nz.

National parks

For a family holiday with a challenging difference, organise a hiking trip in one of New Zealand’s 14 national parks. From Te Urewera National Park in Eastland to Fiordland National Park at the bottom of the South Island, adventure is just waiting to happen. The Department of Conservation handles bookings for campsites and hikers’ huts, which can be very affordable. Visit doc.govt.nz for more information.

Free events

Your local council website can be a good place to find out about free events, concerts, exhibitions, skate parks, tennis courts and other sports facilities. Council sites also have information about cycleways, beaches and parks.

Libraries

For pre-schoolers, a weekly trip to the library is a treat that can encourage a life-long love of reading. Bedtime story sessions will be more fun than ever, because you’ll always have new books in the house. Many public libraries also have story-telling and holiday activity programmes for kids.

Playgroups

If you’re at home with little children, ask about playgroups at your local Plunket centre. Plunket playgroups offer the chance for children to gain valuable educational and social skills, while their parents get to make new friends and share experiences. Parents Centres NZ is another source to check out for playgroups – parentscentre.org.nz

Ideas for teens

It’s great practice for upcoming student years if teenagers can learn how to create entertainment for next to nothing. Instead of going to the movies, they could converge on one house and watch a DVD with homemade popcorn. Instead of hanging around in shopping malls, which encourage spending, they could take a rugby ball to the park for a game of touch. Instead of eating at fast food joints, they could shop for ingredients and make pizza or wraps at home. Instead of buying new clothes, they could arrange a clothes swap with friends.