Our latest research reveals schooling, public and private is the biggest expense with raising a child, with nearly half of respondents (48%) ranking it far ahead of all other costs. Despite acknowledging this, few families are saving for their children's education.
RaboDirect’s 2015 Saving & Spending Survey, which polled more than 700 parents online, shows after school fees, sports or hobbies are the next biggest expense (17%), followed by dentistry or orthodontics (14%), gadgets and technology (8%) and medical costs (4%).
Despite almost one in two parents recognising education as a significant financial hit, few families are saving for their children’s school fees, with only eight per cent reporting they put money aside.
Some of the per child costs of schooling include:
• Annual school donations, which range from $0 to over $1,000 in state schools.
• Activity fees, for activities that fall outside the curriculum.
• Photocopying charges.
• Stationery, which can easily be $200 to $300 a year if you buy everything on the list.
• Bus, train or ferry fares, especially once they get to secondary school. Fares of $2-$4 a day add up to a lot over a year.
• Project materials. Subjects such as woodwork and design often require additional fees for materials.
• Exam fees. Schools can and do charge for every subject sat at NCEA, International Baccalaureate (IB), Cambridge, ICAS and other exams. That can be $70 or more per subject.
Click here for more information on the real costs of a ‘free’ education.
How to get into a savings habit
Get into a strong savings routine for your children’s future by setting a specific and manageable amount to put aside on a regular basis.
With no branch network, low operating costs and minimal overheads, RaboDirect offers New Zealanders a range of on-call savings accounts and term deposits, all with very competitive interest rates as well as access to managed funds.
What’s right for you?
RaboDirect offers a range of clearly explained, competitive product so it’s easy to choose what’s right for you. Find out what’s right for you here.