BusinessDay.co.nz 26 Sep 2011
IRD came up with a round figure in 2009 for raising a child until the age of 18 of $250,000, or about $14,000 per year. And more recently a group of researchers produced some interesting statistics about the price of procreation which were presented to an official statistics forum last year, ostensibly to help the Government to review the formula being used by Inland Revenue to calculate child support payments. The paper Costs of Raising Children found that the average costs of children vary widely depending on the age of the child, households’ income and the number of children per home. But despite the different factors which altered the costs up or down, the study turned up a final figure of an average spend of $403 a week, for two children, in a modest income home. That equates to about $10,478 per child annually. The study used a formula which compared the expenditure of households with no children against those with children.
….And while more children in a house meant more money was spent on average, economies of scale were found by the Costs of raising children study, with each new child costing less than its predecessor. Ad Feedback The study estimated a low income household would spend about $480 per week on four children ($120 a week per child), about $390 on three children ($130 a week per child), and about $280 on two children ($140 a week per child). By contrast, high income earners would push the boat out and spend about $1100 per week on their four kids ($275 a week per child), just over $900 on three kids per week ($300 a week per child) and over $700 on two kids ($350 a week per child).