Having a child is one of the most significant financial events in a person’s life — and one where preparation makes a meaningful difference to how stressful the transition feels. This checklist covers what to sort financially before your baby arrives.
Before having a baby in NZ, confirm your Paid Parental Leave eligibility and rate, calculate the income drop during leave and build a buffer to cover it, check your childcare costs and subsidy eligibility for when you return to work, and update your will, life insurance, and KiwiSaver nominations. Build at least 3 months of living expenses as a buffer before the due date.
1. Confirm Paid Parental Leave Eligibility
Paid Parental Leave (PPL) is available to the primary carer if they have:
- Worked for an employer (or been self-employed) for an average of 10 hours/week
- For at least 6 months before the due date (or adoption date)
PPL rate (2026):
- Up to $754/week gross for 26 weeks (or your actual salary if lower)
- Minimum: Linked to minimum wage for those with lower weekly earnings
Self-employed PPL: Available if you’ve been self-employed for at least 6 months; payment based on average weekly earnings from the last 6 months.
Partner/secondary carer: Up to 4 weeks of the primary carer’s PPL can be shared. Additionally, partners can take 2 weeks of paid partner leave (funded by government, separate from the primary PPL).
Apply through IRD via myIR — apply from 3 months before the due date.
2. Calculate the Income Drop
If PPL replaces only part of your income, calculate the gap:
| Situation | Weekly income impact |
|---|---|
| Salary of $60,000 (~$1,000/week after tax) | PPL covers most of this — small gap |
| Salary of $100,000 (~$1,500/week after tax) | PPL at $754 gross (~$620 net) — gap of ~$880/week |
| Salary of $150,000 (~$2,000/week after tax) | PPL at $754 gross (~$620 net) — gap of ~$1,380/week |
| Self-employed (variable income) | PPL based on 6-month average — often lower than expected |
Buffer needed to cover the income gap:
| Income gap | 3-month cover needed | 6-month cover needed |
|---|---|---|
| $500/week | $6,500 | $13,000 |
| $900/week | $11,700 | $23,400 |
| $1,400/week | $18,200 | $36,400 |
Build this buffer before the due date — it’s much harder to save while on parental leave.
3. Check Your Employer’s Parental Leave Policy
Some NZ employers top up PPL to full salary — many do not. Ask HR:
- Does the company offer employer-paid parental leave on top of government PPL?
- For how long and at what rate?
- Is there a return-to-work obligation (clawback clause) if you don’t return for a minimum period?
This significantly affects your financial planning.
4. Best Start Payments
Best Start is a universal payment for all newborns in the first year:
- $73/week for the first 12 months (for all families)
- Continues to age 3 for lower-income families (income-tested at $79,000 household income for Year 2–3)
Apply via myIR as soon as your baby has an IRD number (you’ll need to register the baby separately).
5. Research Childcare Costs and Subsidies
For most parents, childcare is the largest ongoing baby cost once they return to work:
| Child age | Typical full-time daycare cost/week (NZ, 2026) |
|---|---|
| 0–1 year (infant) | $500 – $620/week |
| 1–2 years | $450 – $580/week |
| 2–3 years | $400 – $540/week |
| 3–5 years | $350 – $500/week (partly offset by 20 Hours ECE) |
20 Hours ECE: Free for 3–5 year olds (up to 6 hours/day, 20 hours/week). Most ECE centres provide this but may charge top-up fees.
Childcare Subsidy: Income-tested subsidy for families who meet the work test. Check Childcare Costs NZ 2026 for full details and thresholds.
Apply for the Childcare Subsidy well in advance of returning to work — processing takes 4–6 weeks.
6. Update Your Will
If you don’t have a will, make one before the baby arrives. If you have one, update it:
- Name guardians for your child — this is the most important clause when you have young children
- Review asset distribution — does your estate go to your partner, or directly to children?
- Name an executor
Without a named guardian in your will, the Family Court decides who cares for your children if both parents die — this may not align with your wishes.
7. Update KiwiSaver Nominated Beneficiary
KiwiSaver passes outside your will to your nominated beneficiary. Update this with your provider to reflect your new family situation. If your child is too young to be a beneficiary, nominate your partner and ensure your will covers the intent.
8. Review Life Insurance
After having a child, the financial impact of one parent’s death is significantly greater:
| Life insurance consideration | Action |
|---|---|
| Do both parents have cover? | Review — a stay-at-home parent has significant economic value |
| Is the cover amount sufficient? | Typically needs to replace 10+ years of income |
| Is cover through employer (group life)? | This may lapse if you change jobs |
| Trauma / critical illness cover | More important with dependants |
Getting life insurance after a health event is harder — take out cover before the baby arrives if you don’t have it.
9. Income Protection Insurance
If you can’t work due to illness or injury during the baby’s early years, income protection becomes even more important:
- Ensure your income protection policy covers parental leave periods
- Check whether the waiting period (typically 4–13 weeks) is manageable given your savings buffer
- Self-employed people are particularly vulnerable — ACC covers work accidents but not illness
10. Budget for the First Year
See Baby Costs First Year NZ 2026 for a full breakdown. As a quick summary:
| Category | First year cost |
|---|---|
| One-off gear (second-hand where possible) | $600 – $3,000 |
| Ongoing monthly costs × 12 | $2,300 – $10,400 |
| Healthcare | $0 – $500 |
| Income gap (if any) | $0 – $35,000+ |
11. Relationship Property — De Facto and Married Couples
If you are not married and in a de facto relationship, the Property (Relationships) Act 1976 applies after 3 years together (or with a child). This means:
- The family home, KiwiSaver growth during the relationship, and other property is treated as jointly owned
- If you separate, most assets accumulated during the relationship are split 50/50
This applies whether or not you’re married. Having a baby together accelerates this — it’s worth understanding your position. See Combining Finances as a Couple NZ.
Final Checklist Summary
- PPL eligibility confirmed and application submitted via myIR
- Income drop during parental leave calculated and buffer savings built
- Employer top-up policy checked
- Best Start payment applied for (after birth)
- Childcare costs researched and Childcare Subsidy eligibility checked
- Will updated (especially guardian nomination)
- KiwiSaver beneficiary nomination updated
- Life insurance reviewed and updated
- Income protection insurance confirmed
- First-year baby budget built
- Relationship property position understood