A BNZ survey found nearly a third of people who said they had start-of-year expenses this year had trouble deciding what to pay, how to pay and when to pay. Photo: Supplied/123rf
Mother of two Jane says the start of the school year is always tough financially.
"The holiday period stretches us to the limit and there is just no let-up right through the first term of the year, with most school costs hitting then."
She said she paid for school uniforms for her children, both of whom are at intermediate, with a loan from Work and Income, and put school sports shoes on Afterpay.
"The school costs are stressful every year so I cut the family budget further and further and then borrow the least I can manage with.
"I know Afterpay is a real millstone around my neck, but when you can't just go out and buy everything your kids really need whenever they need it, it does make things possible that otherwise wouldn't be doable at all.
"When your only choice is between relentlessly crushing and completely impossible, then crushing feels like the most positive move, or at least the least negative."
A BNZ survey found nearly a third of people who said they had start-of-year expenses this year had trouble deciding what to pay, how to pay and when to pay.
Of them, 37 percent turned to buy now pay later (BNPL) services, credit cards and other high interest lending.
"The financial pressure at the start of the year is very real for some households, especially after the holiday period when budgets are already stretched," executive for personal and business banking at BNZ Anna Flower said.
"For some, these pressures led to difficult sacrifices - 14 percent of affected households reported selling things to help meet these costs," she said.
The biggest start-of-year expenses were stationery, followed by transport, school and work uniforms and technology-related costs.
General manger of North Harbour Budgeting Service Claudette Wilson said it reflected what her organisation was seeing too.
"2025 has been challenging for parents, with many turning to BNPL schemes and other high-interest credit options that can create longer-term financial strain.
"Perhaps most concerning is seeing children excluded from essential school activities because their parents simply can't afford them," Wilson said.
"We're witnessing families forced to choose between paying rent, putting food on the table, or covering basic school costs like technology, books and camp fees. With the ongoing cost of living pressures, some families simply can't stretch their budgets to cover all these necessities.
"We've also identified a concerning trend that's often overlooked - a significant increase in seniors over 65 seeking our support because they're raising grandchildren.
"These older New Zealanders, who should be enjoying retirement, are instead navigating school uniform purchases and technology requirements, creating substantial financial pressure on fixed incomes."
Flower recommended saving a small amount each month to help with the cost in the new year.
"Putting aside a little each month can ease the financial pressure when these costs come around. Even better, using a dedicated high interest savings account can help these funds grow with interest throughout the year, giving families a bit extra when costs arrive."
But Jane said that wasn't easy.
"There is also a program at the local uniform to drip-feed in advance for the next year but when you're paying off one year you can't also save for the next. It's one or the other."
She said the school lunch provider change had also been a struggle, because her children had stopped eating at school.
"They're both good students, avid readers and enjoy sports. One takes a leadership role at school. They're well liked, get good grades, look clean and tidy and get along with others. There just isn't enough money.
"I know people often say you shouldn't have kids if you can't afford them but people's circumstances can change in unexpected ways quite out of the blue.
"You can't necessarily predict experiencing a sudden marked change in health or becoming a solo parent, you just do your best when circumstances change with the options available. Having and maintaining a loving family shouldn't be a luxury exclusive to the fortunate."
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