As part of our series exploring how New Zealanders live and our relationship with money, a solo mum explains how her financial outlook has changed post-divorce.
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Gender: Female.
Age: 42.
Ethnicity: Chinese (New Zealand born).
Role: Teacher. Divorced solo mother with two children, 7 and 11.
Salary/income/assets: $103,000k, which is the limit a teacher can earn. So I have to ensure money comes from elsewhere. I own a house which is still co-owned with the ex until next year. I have been investing for 1.5 years via a financial advisor, and the managed funds are doing really well (28% since inception). $75,000 in KiwiSaver (I had to start again twice: I used some funds to buy the house 13 years ago, and had to give 50% to the ex husband when we separated four years ago).
My living location is: Suburban.
Rent/mortgage per week: $749 a fortnight. I’m the sole earner and children live mainly with me.
Student loan or other debt payments per week: None. I can’t stand debt. I’ve never had a student loan – I worked when I was in high school and paid for three university qualifications myself (plus some scholarships). I don’t even own a credit card.
Typical weekly food costs
Groceries: $100 – $110 for us three. I am a bit of a foodie and love to cook, so I make most of my meals from scratch. It’s much cheaper to make your own stock, pasta sauces, soups and casseroles.
Eating out: About $30-$60 a week. This includes the odd ice cream or treat (to bribe the kids!)
Takeaways: Rare, sometimes fish and chips for around $30.
Workday lunches: I make all my lunches or take leftovers. It’s healthier and cheaper.
Cafe coffees/snacks: I’ve only just started drinking coffee to stay awake! Maybe $6 once a week or less.
Other food costs: I grow some of my own vegetables. Items like lettuce, spinach and herbs cost a lot to buy, yet are so easy to grow and cut what you need. I belong to a local monthly Crop Swap group where I share my crops or surplus pantry items and swap for bread, eggs, fruit, vegetables, seedlings, all sorts of gardening and foodie related items. Last time I got wine!
Savings: I have very organised bank accounts. Every fortnight I automatically put: $100 into an account for my daughter’s future braces (which will be around $15,000! but the costs will be halved with her father); $200 into a travel account; $200 into an education account.
I also have a reserve funds savings account which is $20,000 – about 3-6 months living costs saved in there. However I had to use some for my house, contents and car insurance so I’m working on building it back.
Plus $200 into income protection insurance, $150 into managed funds investments and I also have an account for utilities.
Last year my girls and I treated ourselves to a trip to Bali for one week. It cost $3,800 and included flights and amazing accommodation. It felt good to pay for it six months in advance, continue saving, and come back and still have money in that account.
I worry about money: Always.
Three words to describe my financial situation: Organised, goal-driven, flexible, frugal, future-focused.
My biggest edible indulgence would be: Quality dinner out with wine and dessert. For me, quality can be “high-end” Italian or the cheap Chinese kitchen type eatery. You often get quality and quantity and far more veges at these Asian eateries.
In a typical week my alcohol expenditure would be: $13 a fortnight.
In a typical week my transport expenditure would be: About $60. I never have less than a third of petrol left. I drive an economical Nissan Wingroad and use the Pak’nSave discount vouchers, and the Gaspy app.
I estimate in the past year the ballpark amount I spent on my personal clothing (including sleepwear and underwear) was: $250? I love opshopping and almost all my clothes are second hand. When I was a younger I used to sew a lot of my clothes, or do up second hand finds into something unique.
My most expensive clothing in the past year was: Quality hiking boots. I can’t remember how much I paid for them as I got them on a discount, plus another discount…
My last pair of shoes cost: $10 genuine 1980s jellies still in their original box, unworn. Score!
My grooming/beauty expenditure in a year is about: It’s very very cheap. I pay around $40 for my hairdresser friend to cut my hair once a year. I still use The Body Shop makeup that has lasted me ages. I bought some make up in Bali for super cheap, less than $10. I get my eyebrows threaded for $12 once a month.
My exercise expenditure in a year is about: Free. I run, hike and do yoga from YouTube. These activities are flexible for me to do, and cost nothing but my time and energy. This is very important to me, as a solo mum. I have fantastic premium running and hiking shoes – I forgot their prices, but I managed to get on major discounts.
My last Friday night cost: Dinner $30 (entree and mains) and a rosé for $13. Free live music at a local pub. I don’t need to spend heaps to have fun.
Most regrettable purchase in the last 12 months was: A pair of high heels that I only wore once and got blisters from. They cost $110.
Most indulgent purchase (that I don’t regret) in the last 12 months was: Massages. I get a voucher for myself when they go down to $65 on sale, and when my life is in need of pampering. It includes a foot spa, hot rocks, oil massage, facial and special tea. Sometimes I get one to reward myself for my savings goals.
One area where I’m a bit of a tightwad is: Big ticket appliances. I research for best quality with a mid-range price on Consumer magazine reports. Then I bargain the price right down. I use websites like pricespy.co.nz to compare which retailers sell it cheaper. I take note of any discount clubs, or discounts for teachers or a specific group of people (birthday discounts!) and any freebies, like free installation, delivery or to take the old appliance away. Using evidence of competitors’ prices, I then use my savvy buying skills and target a seller, stating I need to buy the item today (they hear: $$ commission!) We negotiate the best deal I can get. I’ve done it for my iPhone, oven, range hood, bathtub… the list goes on. Sometimes I loyally go back to the same staff member, and I’ve even written positive feedback to their bosses.
Five words to describe my financial personality would be: Empowered, goal-driven, savvy, organised, flexible.
I grew up in a house where money was: Always there, but limited. My parents owned a Chinese takeaway, owned rental properties and shares. We kids did jobs to earn pocket money around the takeaway. We never ran out of money, but occasionally they had to borrow and pay back.
When I grew up I often saw friends’ lives with flasher houses, overseas trips, fancy clothes and parents with other “more interesting” occupations. Now I can see the benefits of hard work, saving hard and investing. We didn’t rely on benefits. My mum taught me to always save.
The last time my Eftpos card was declined was: I honestly can’t remember; and when it did, I simply forgot to transfer money from my incoming account to my spending account. I check my banking app every day, often multiple times a day, to ensure money is where it needs to be.
In five years, in financial terms, I see myself: Living in another house I own independently. I’ll aim to privately sell my current house. My long term diversified investments will continue to grow. I want to own rental properties too. I use a financial planner who keeps me focused on my goals. I found him not long after I became a solo mum and had found my feet again.
Five years ago, I relied on my then-husband to manage finances, as he just assumed this role. But it was disorganised and reactive with limited financial literacy; now, I am in charge of my goals, plans and momentum. And I’m teaching my kids that when they earn their pocket money, they must split it into savings (bank accounts, with 50% interest!), spending (wallets) and give (a jar for gifts).
I would love to have more money for: Building a dream house of my own, and rental properties. It’s important I make my money work for me. Also money to regularly invest for each child, as the earlier the money gets invested, the better returns.
Describe your financial low: Last year I had a huge life challenge that meant I had to stop working for awhile, or do limited hours. I had to rely on some Winz support. This was new for me, the only benefit I had was a student allowance when I was 18-19. The great thing was that I never went backwards – I still paid my mortgage, investments, and always had food, petrol and a roof over our head. I didn’t need to touch my reserve funds. I’m actually proud I got through it.
I give money away to: Cancer Society and Women’s Refuge.
