$1.1 billion-dollar cost of summer holidays for parents

$1.1 billion-dollar cost of summer holidays for parents

Wallet feeling a little empty these summer holidays? The “Bank of Mum and Dad” handed out $368 million in spending money to kids over the Christmas break, according to Commonwealth Bank research. 

Commonwealth Bank (CBA) also revealed that kids aged 5 – 7 received a whopping $1.1 billion in spending money in total over the break. 

For many parents, it comes as no surprise that the six-week long break “can present a stressful financial burden for parents paying for additional activities.”

The true cost of summer holidays

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According to CBA research Aussie kids are typically receiving an average of $509 over summer holidays, with the figure increasing by age. 

  • 73 per cent of kids receive money through Christmas gifts
  • 72 per cent also receive handouts from their parents
  • 58 per cent had to earn their way through chores
  • 45 per cent of kids dipped into their savings
  • 42 per cent continued receiving pocket money
  • 65 per cent of teenagers aged 16-18 worked part time over the summer 

The most lucrative way for under-18’s to make money over summer comes from part-time jobs, with those old enough to work earning an average of $198 over the six-week period. 

For those too young to work, Christmas cards brought them on average $137 and handouts from parents around $111. Chores, however, earned kids an average of $32 and pocket money an average of $31. 

What do kids spend their money on? 

A question posed by many Aussie parents this summer, CBA research has found that more than half (55 per cent) of school children chose to spend their money on sweets and lollies. 58 per cent also spent their money on activities such as going to the cinema. 

Girls were also more likely to spend their money on shopping for clothes (54 per cent) than boys (39 per cent), with boys more likely to fork over their summer cash on video games (36 per cent), books (21 per cent) and sports (14 per cent). 

Children asked their parents for money on average eight times over the six-week summer break. Half of parents found the extra financial commitment to be stressful and that by the end of the summer they are “running low on money for activities”. However, a savvy 42 per cent of parents made a holiday budget at the start of the break to manage the extra financial pressure. 

School Banking and Youth General Manager, Irene Rowlands, told CBA that with two weeks of the holidays left to go, “there’s still time to help kids make the most of the summer holidays and ease the pressure on parent’s purses.” 

 “The long, hot days of the summer holidays offer kids the chance to enjoy some well-earned time out from school. 

“But keeping kids entertained doesn’t always come for free and, for many families, the financial burden of funding extra activities, on top of taking time off from work, can be stressful. 

“With two weeks to go, there’s still time to ease the financial load off your mind. Set up a summer budget, opt for low cost or discounted family activities, and keep a track of your spending using handy personal finance apps.

“Given the influx of cash kids receive over the Christmas break, the summer holidays are also the ideal time to talk to your children about managing their money and establishing good savings habits,” said Ms Rowlands.

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What do I need to open bank accounts online?

Opening a bank account online is a simple process and only takes between five to 10 minutes to complete. To get started you will need a computer or smartphone with internet access.

Information to have available when you’re ready to apply is:

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There are some types of bank account that you can apply for only in a branch. However, most bank accounts can be applied for conveniently online.

Can I find my bank account number online?

Yes, you can find your bank account number by logging into your online banking and clicking on the relevant account.

What do I need to open a company bank account?

To open a company bank account, you will probably have to provide 100 points of ID, an ABN and an ACN. You will probably have to provide the details of all signatories as well.

Can I open bank accounts for my children?

A common question for new parents is, ‘Can I open a bank account for my child?’

The short answer is yes – as a parent you can open a bank account for your child.

Once you’ve compared your options and found a bank account that suits your needs, the process is relatively simple.

As the bank account is for your child, you’ll need to provide some documentation such as proof of ID, including your tax file number.

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Can I have a PayPal account without a bank account?

You don’t need a bank account to send or receive money through PayPal. However, you do need a bank account if you want to withdraw money from your PayPal account.

Can I close my bank account over the phone?

In most cases, you can close a personal or business bank account over the phone. In fact, this is the best way to ensure you’ve closed an account properly.

By speaking to a banking representative, you can capture and close out any pending transactions, or interest owing/payable on the account being closed.

In the instance where the account is a joint account, or you have multiple bank accounts you want to close, your bank may send you a form that you need to fill out and return.

Either way, you would be advised over the phone of the steps you need to take. Calling your bank ahead of closing an account is often a smart course of action.

How do you open a bank account in Australia?

Opening a bank account in Australia is usually a straightforward process. Some banks give you the option of opening an account online, while others require you to visit a branch.

Different bank accounts offer different features, so it’s best to compare your options to find one that suits you.

All banks require you to pass an identity check to open a bank account. Australia uses the 100-point identification system, which means you’ll need to show a number of forms of ID that, together, add up to 100 points.

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Can foreigners open bank accounts in Australia?

Many Australian lenders allow foreigners to open bank accounts in Australia. Often, this can be done before you arrive in the country – with no Australian address required. When you get to Australia, you can pick up your debit card, using your passport as identification.

How can I close an ANZ Bank account from overseas?

There are two ways you can close your ANZ Bank account from overseas:

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How do you delete your bank account from PayPal?

Deleting your bank account from PayPal is a simple three-step process:

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How do I open a bank account for a baby?

If you’ve just welcome a new baby into the world, congratulations. Opening a bank account for your child can be a wonderful first gift.

Before you can open your child an account, you’ll need to have a birth certificate or passport for your baby.

As the parent or guardian, you’ll also be listed as a joint holder on the account. This means you’ll need to have proof of your identification and address (a driver’s licence, passport, birth certificate or Medicare Card).

Many banks and credit unions offer baby banks accounts. Usually, you can apply online; otherwise you can head into a local branch or office with your documents.

Can I open a bank account in another country?

Despite having a bad rap for facilitating tax evasion, it is possible and legal to open a bank account in another country, also known as an ‘offshore account’.

Some people choose to open a bank account in another country to invest overseas, for higher interest-earning potential or to access foreign banking services.

The process for opening an offshore bank account differs depending on the financial institution and country in which you’re opening the account.

Typically, you will need to provide identification such as a passport, a local bank statement and a signed declaration proving the source of the money being used to open your account. Usually, deposits into offshore accounts can be made by international money transfer.

How can I deposit cash into my bank account?

The traditional way to deposit cash into your bank account is to go to a branch and give it to a teller. These days, many banks will allow you to make deposits through an ATM as well.

How do I transfer money from Paypal to my bank account?

Transferring cash from Paypal into your bank account is simple…if you have a Paypal account that is.

Once you’re logged into your Paypal account, the account balance will appear on your home page. Below your balance are two options:

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