Budgeting Stress Over Summer: How Holiday Costs are Hitting Kiwis

As schools break for summer, many New Zealand families feel the pinch of extra bills. Holiday programmes ($50–70 per child per day), extra meals, travel, gifts and outings can quickly add hundreds of dollars to a week’s expenses. Cost-of-living is already the top concern for many Kiwis, and one NZ Herald report found that for a family with two school-age children, two weeks of typical holiday programmes and increased home costs can easily top $1,000. A Westpac survey in late 2024 found 72% of respondents were extremely or moderately concerned about living costs, and nearly half planned to spend less on holidays than the year before. All this adds up: about 1-in-5 New Zealanders expect the summer season to be more financially stressful than last year.

Financial pressure can affect whānau well-being. Studies show that worrying about money is strongly linked to stress, anxiety and depression. In fact, a recent U.S. study found that higher “financial worries” predict significantly more psychological distress. And locally, insurer AIA reports that 70% of Kiwis now worry about money regularly (daily, weekly or monthly), the highest rate since 2020. It’s no surprise that many parents feel anxious as inflation and interest rates bite. The good news is that even small changes can ease the strain. A financial planner suggests saving in advance and setting a clear holiday budget rather than relying on credit cards. Likewise, experts (including the Mental Health Foundation) emphasise simple self-care: a short walk, a chat with a friend, or focused budgeting can lift mood and cut worry.

Small Steps to Ease Financial Pressure

If you’re feeling stretched this summer, you’re not alone. The good news is there are practical, low-stress ways to manage holiday costs without cutting the joy out of the season. Here are some simple, effective strategies:

1. Plan early and involve the whole whānau
   Set aside a little each week for summer costs, if you can. Track the essentials first, like groceries, petrol and any bookings, then look at what’s left. Financial advisers recommend creating a shared holiday budget with your family. This helps avoid last-minute spending or the dreaded post-holiday debt hangover. Even modest savings can reduce pressure and give you peace of mind.
2. Focus on low-cost fun
   You don’t need pricey outings to make memories. A picnic at the beach, a backyard game, a bushwalk or a library visit can be just as rewarding. Local councils and community groups often run free summer events for tamariki; keep an eye on newsletters and noticeboards. One expert suggests that getting outdoors is one of the best free options families can turn to as costs rise.
3. Re-think gifts and extras
   Gift-giving can be joyful, but it doesn’t need to be expensive. Consider Secret Santa, homemade treats or setting a dollar limit. Westpac suggests talking openly with whānau about budgets and expectations. You might also swap presents for shared experiences like a board game night or a family picnic; these cost less and bring people together.
4. Make the most of support
   If holiday care is stretching the budget, check whether you qualify for the OSCAR Subsidy through Work & Income. This can cover up to 50 hours of holiday care per week for eligible families. Some churches or community organisations also offer one-off grants or food support. And when it comes to spending, using saved cash is usually better than buy-now-pay-later schemes, which often carry hidden fees.
5. Don’t carry the stress alone
   Money worries are common, and sharing the load can make a big difference. Shaun Robinson from the Mental Health Foundation reminds us that “connecting with a friend and opening up to someone you trust can lighten the load significantly. Even a short kōrero on the phone or a walk with a mate can ease tension. If things feel overwhelming, budget advice services and free mental health support like 1737 are there to help. Talking to your GP is another good first step as these services are confidential and free.

Looking After You and Your Whānau

It’s understandable to feel worried when money is tight. Try to keep routines as normal as possible, regular meals, bedtime and simple daily rhythms help children feel secure and give you a sense of control. Focus on what you can do: plan meals to avoid overspending, encourage kids to help with simple chores or creative play, and schedule free family time. These steps show your whānau that fun doesn’t have to cost a lot.

Finally, remember that many Kiwi families share this struggle. You’re not alone, and the pressure will ease when the holidays end. By planning a bit, choosing low-cost activities, and leaning on support networks, you can help protect your family’s finances and your peace of mind this summer.

References: 

1. Smith, C. (2025). School holiday costs adding to stretched household budgets, families face extra $1000 bills. [online] NZ Herald. Available at: https://www.nzherald.co.nz/business/school-holiday-costs-adding-to-stretched-household-budgets-families-face-extra-1000-bills/KWYOFEMGCJDUZA6TC2YDQ25GNM/ [Accessed 22 Oct. 2025]
2. Westpac NZ. (2024). Westpac NZ shares tips for mindful summer spending as cost pressures persist. [online] Available at: https://www.westpac.co.nz/about-us/media/westpac-nz-shares-tips-for-mindful-summer-spending-as-cost-pressures-persist/
3. Ryu, S., & Fan, L. (2023). The Relationship Between Financial Worries and Psychological Distress Among U.S. Adults. Journal of family and economic issues, 44(1), 16–33.
4. Friedline, T., Chen, Z., & Morrow, S. (2021). Families’ Financial Stress & Well-Being: The Importance of the Economy and Economic Environments. Journal of family and economic issues, 42(Suppl 1), 34–51. 
5. Work and Income (2025). Moving from Childcare Subsidy to OSCAR – Work and Income. [online] Govt.nz. Available at: https://www.workandincome.govt.nz/on-a-benefit/childcare/moving-from-childcare-subsidy-to-oscar.html [Accessed 22 Oct. 2025]
6. Aia.co.nz. (2025). Kiwis Face Rising Financial and Mental Strain. [online] Available at: https://www.aia.co.nz/en/onelife/plan-well/financial-stress-is-taking-a-toll-on-new-zealanders-mental-health.html
7. Martin, M. (2022). Ways to help your clients cope with financial stress. [online] Mpamag.com. Available at: https://www.mpamag.com/nz/news/general/ways-to-help-your-clients-cope-with-financial-stress/431367 [Accessed 22 Oct. 2025]