Have you thought about the upcoming expenses for your children?
RaboDirect recently commissioned independent research by TNS to better understand Kiwis attitudes and behaviours towards saving. One of the questions asked of parents was what their single largest cost would be for a child under 16. To help validate the results, we took a poll on Facebook asking the same question:
Both surveys showed that school fees and dental costs were by far the most significant expenses that parents expect to face for their children.
So this got us thinking, how much really are these expenses? After a few phone calls and some digging online, we found that for your son to attend a private school in Wellington for a full thirteen years, (and you may want to prepare yourself for this) the fees came in at around $208,000. That’s $16,000 per annum. For a Wellington girls' private school it was a little cheaper at around $195,000, or $15,000 per annum.
If you're in the Auckland area, fees for the boys and girls private schools we checked were about the same or slightly more expensive. We also found that on average, braces cost from $4,000 to $7,000 for children less than 14.
Let's not forget, these costs are per child, so you'll want to double, triple or even quadruple the costs depending on how many children you have.
The best no strings children's account in the market
At RaboDirect we offer children's accounts that have the same components as an adults account including market leading rates, full access to your money without terms, unlimited withdrawals and absolutely no fees or charges around your savings.
So, if you'e thinking about private schooling for your child, children or even future children or can see those new teeth are going to need some correcting in the future, you should consider opening your child a savings account. Our Children's Savings Account is the perfect fit and offers the same high interest rates as our other accounts, currently 1.25% with a % bonus for the first 4 months.
You may like to think about it this way; if you opened a children's savings account today and saved $12 per week, the same money as you would spend on a Lotto ticket, by the time your child becomes a young adult, you'll have banked only just over $11,000 towards their education.