School holiday costs adding to stretched household budgets, families face extra $1000 bills

Finding the balance between keeping school children entertained during the holidays and not overstretching the budget can be tricky. Photo / 123rf

School holidays can become a financial stress test for parents, particularly in a cost-of-living crisis.

Holiday programmes, trips to the zoo or movies and extra food can easily add up into the hundreds of dollars per child.

Lighthouse Financial wealth director James Blair told the Herald school holidays often come with a heavy price tag for parents.

“It’s death by a thousand cuts a lot of the time when the kids are at home,” he said.

“It’s all the $20 and $30 amounts that add up during the week ... the groceries, there’s little costs that add up there. By having the kids at home, the heating bill is more, the electricity bill is more, it’s all those little things that end up adding up to be quite a bit.”

Blair said the cost can be steep no matter who looks after the children.

“Holiday programmes are pretty common in New Zealand, but they cost like $50 to $70 a day, so that can be like $300 a week.

“If you’ve got a couple of kids at school and they’re on school holidays for two weeks, it can easily be over a thousand dollars you’re paying.

“Or you’re having to take time away from work ... you still need to entertain the children during the day.

“It does get pretty expensive.”

Blair said parents can help to soften the financial blow by planning ahead.

“Make sure that you’re saving in advance and structuring what you can afford within those holidays.

“Have a budget in place, [as] opposed to paying for these things on credit cards or using [buy now, pay later platforms].”

Blair said there were also lots of good resources around free activities that can be done with kids.

“Especially as we start to head into summer, going to parks, playgrounds, going to the beach. All of those things are really good options as well,” he said.

The Government also offers support through its Out of School Care and Recreation (Oscar) subsidy for low- or middle-income families who can’t take care of a child.

The subsidy helps with the costs of before- and after-school care for up to 20 hours a week, and school holiday programmes for up to 50 hours a week.

Blair said that was quite good support from the Government.

“For a family with two children, those earning under $1264 a week before tax can get the highest rate – $326 per child, per week.”

Cameron Smith is an Auckland-based business reporter. He joined the Herald in 2015 and has covered business and sports. He reports on topics such as retail, small business, the workplace and macroeconomics.