Cost Of Living For a Couple in Papua New Guinea 2024

Average monthly spending for couples in Papua New Guinea

How much money does a couple need in a month to survive in Papua New Guinea?

Couples in Papua New Guinea spend around 4,600 PGK per month on average. Depending on the lifestyle, a couple can survive with a monthly budget as low as 1,500 PGK or as high as 25,000 PGK. Location and income are very important factors and have a huge influence on expenditure and budget.

Couple expenditure to income ratio in Papua New Guinea

Analysing the how affordable it is for couples to live in Papua New Guinea

One of the most definite ways to determine how affordable a place is measuring the ratio of expenses to salary. A high expense-to-income to ratio indicates a high cost-of-living index while a low expenditure-to-salary ratio means the place is affordable to live in. Couples usually spend a larger chunk of their income than other population groups. A typical and healthy expenditure percentage for a couple of four ranges between 70% to 80%.

Couples in Papua New Guinea spend around 81% of their monthly income. Some couples spend as low as 73% of their income while some as high as 89%.

How do couples spend their money in Papua New Guinea?

We asked thousands of couples about their spending habits and expenditure break down.

Housing and accomodation expenditure for couples

Couples in Papua New Guinea typically spend from 21% to 38% of their total monthly expenditure on housing with 28% being the average. The average monthly spend on housing is 1,600 PGK with expenditure ranging from 520 PGK to 8,400 PGK. This cost mainly goes for rent but it also includes other accommodation-related expenses.

Electricity, utilities, energy, water, internet, and mobile expenditure for couples

Utility expenditure like electricity, water, and gas in Papua New Guinea ranges from 5% to 11% of total expenses with 7% being the average for most couples. The average monthly cost of utilities is 210 PGK with 61 PGK and 1,400 PGK being the upper and lower limits for a couple of four.

Transport, fuel, and commute expenditure for couples

Fuel consumption and cost of transport depend heavily on whether a couple resides near school and work, but roughly speaking a couple would expect to spend from 180 PGK to 2,900 PGK in a month on commuting with 550 PGK being the norm for most couples. This means that money spent on transport constitutes about 10% of total spending on average but can go as low as 4% or as high as 15%.

Food, groceries, and basic shopping expenditure for couples

The average outlay on groceries and basic houshold items for a typical couple in a month in Papua New Guinea is 650 PGK. The cost of groceries can range between 220 PGK to 3,400 PGK. Couples spend on average about 16% on food and groceries with upper and lower bounds of 11% and 21% respectively.

Healthcare and medical services expenditure for couples

Couples in Papua New Guinea allocate 7% to 17% of their total monthly expenditure to healthcare including health insurance and out-of-pocket medical expenses. The average spending on medical services and clinic visits is around 13%. The range of medical expenses range from 170 PGK to 2,700 PGK with 510 PGK being the norm for most couples.

Leisure and shopping expenditure for couples

This category mostly contains discretionary or non-essential expenses but also some non-discretionary spending like furniture for example. The monthly expenses range from 92 PGK to 1,500 PGK with 280 PGK being the average. Speaking of percentages, that equates to 2% to 7% of total expenses with an average of 4% for most couples.

Education and schooling expenditure for couples

Spending on education can vary drastically between different couples. On average, education constitutes 2% of the monthly expenditure of couples with 1% and 4% being the lower and upper bounds respectively. The average reported education cost is 92 PGK per month with 31 PGK being the minimum spent amount and 490 PGK being the maximum.

What percentage of couples in Papua New Guinea are able to save money and how much can they save?

Percentage of couples that reported their ability to save money

Almost 58% of surveyed couples in Papua New Guinea said that they can save some money at the end of each month while 42% reported that they have to utilize their whole income to survive.

How much money do couples manage to add to their savings?

Saving to Income Ratio

Average Monthly Saved Amount

Savings to income distribution levels for couples

Interpretation and Analysis

Couples that are able to save money can put anywhere from 11% to 31% of their monthly income to their savings, with 20% being the average for most couples. The average monthly amount of money that couples can put aside is 1,600 PGK with 520 PGK and 8,400 PGK being the minimum and maximum respectively.

Saving Challenges in Papua New Guinea

Reasons that make it difficult for couples to save money

We wanted to understand what is stopping couples from maximizing their savings in Papua New Guinea. Listed below are the answers given by the survey participants.

Around 6% of the couples said that their salary is too low to accommodate a portion for savings while 9% said that the high cost of living leaves little room for savings. 16% of the residents said that they are burdened with debt and find it challenging to save money. 11% reported that they just don't have the knowledge or discipline to create and stick to a budget, leading to overspending and an inability to save. 10% of couples blamed impulsive spending as the reason for saving inability. Around 6% said that unexpected expenses like medical bills or car repairs are derailing their savings goals. 6% bluntly said that they don't see the purpose of it and prefer to live each day to the fullest. 18% reported that they understand the value of saving but are putting off saving for the future, thinking they have plenty of time to start later. 12% blamed inflation, saying that every time they save some money they end up using it immediately. A surprising 3% said that social pressure and keeping up with peers or social expectations makes them overspend. Lastly, 3% blamed market instability and price fluctuations.

Typical saving choices for couples in Papua New Guinea

Where do people choose to put their savings?

A typical and healthy budgeting structure

The 50/30/20 rule

Spending among different people can vary significantly based on factors such as their income, lifestyle, location, and personal preferences. A commonly used guideline for budgeting is the 50/30/20 rule, which suggests allocating your income into three main categories in the following percentages.

• 50% for needs and financial obligations

  This category includes essential expenses like housing, utilities, groceries, transportation, and healthcare.

• 30% for wants and discretionary spending

  This category covers discretionary spending on non-essential items, such as dining out, entertainment, travel, and other lifestyle choices.

• 20% for savings and emergency fund

  This is the percentage that must be allocated to savings, emergency funds, and retirement accounts.

About financial planning, money management, and household budgeting

Affordable living in Papua New Guinea

Income and cost of living compatibility

We asked couples one simple question and recorded their answers.

Is it affordable or economical to live in Papua New Guinea?

Around 61% of surveyed couples think that living in Papua New Guinea is affordable with proper budgeting while 39% reported that it is just too expensive and not affordable even with frugality and thriftness.

Low-cost alternatives in Papua New Guinea

People are always looking for ways to cut down expenses and reduce expenditures. The hallmark of any affordable place is the availability of discount stores, bargain deals, smart or secondhand shopping, refurbished items, and couponing. We asked couples how easily cost-cutting is and the answers were distributed as follows:

Plenty of low-cost options58%

Few low-cost options42%

Based on the survey, 58% of the couples living in Papua New Guinea have no problem finding low-cost alternatives to support a frugal lifestyle while 42% think that thriftness is difficult due to scarcity in discount markets and secondhand outlets.

Emergency Funds For Couples

An emergency fund is a financial safety net comprised of easily accessible savings set aside to cover unexpected expenses or financial emergencies, typically amounting to three to six months' worth of living expenses. We asked couples of Papua New Guinea whether they have an emergency fund and the answers were as follows.

Yes60%

No40%

Based on the survey, 40% of the couples living in Papua New Guinea said that they don't have an emergency fund while 60% said that they do.

Financial Literacy in Papua New Guinea

Financial literacy is the knowledge of concepts and principles related to personal finance that allow individuals to make informed decisions regarding their money such as budgeting, saving, investing, borrowing, managing debt, financial risk management, and planning.

Financial Leteracy56%

We asked couple guardians and parents in Papua New Guinea whether they acquired any adequate personal financial training in their lives. Approximately 44% of the people who participated in the survey said that they are not well informed about the topics of budgeting, saving, etc., and just manage things based on their own experience, while 56% said that they know about the general principles of personal finance from sources other than their own experience.

Difficulty in Budgeting and Financial Planning

We wanted to understand whether couples of Papua New Guinea have problems or difficulties in managing their expenditures and savings so we asked people one simple question: do you struggle with your personal finances? 38% of the participants reported that they indeed struggle in creating budgets and in organizing their finances while 62% said that they have everything under control.

Struggles with finance38%

Easily manages finances62%

Financial goals of couples in Papua New Guinea

In an attempt to understand the economic situation in Papua New Guinea, we asked participants about their financial targets. By knowing what the population in general is trying to achieve, we can shed light on the economic outlook, cost of living, and quality of life in general.

Around 7% of couples said that their main goal is to establish an emergency fund to cover unexpected expenses while 37% said their number one priority is to pay off high-interest debt or loans and improve credit. 9% of surveyed people confirmed that saving for retirement to ensure a comfortable lifestyle in the final years is their main target. Around 8% reported that their priority is saving for the tuition fees and education costs of their children while 17% choose to buy a home or pay off existing mortgage before other things. 8% of the population would like to build wealth through investments such as stocks, bonds, mutual funds, or real estate. For 9% of people, saving for vacations or upgrading their lifestyle is the number one concern. Approximately 11% of the residents said that saving for healthcare expenses including insurance premiums is their main goal.

Debt, loans, and mortgages in Papua New Guinea

Percentage of couples who are in debt

According to the survey, 27% of the couples in Papua New Guinea have some kind of debt, loan, mortgage, or credit card payments while 73% reported that they don't have financial obligations to banks.

Debt-to-income ratio in Papua New Guinea

Interpretation

The debt-to-income ratio measures the percentage of income being paid as debt settlement across the population. It is calculated by dividing the monthly debt settlement payment of an individual by their monthly income. Based on collected data, approximately 30% of a couple's monthly income in Papua New Guinea goes to debt settlement.

Debt levels

Monthly debt settlement payment as percentage of monthly income

According to our data, 3% of the debtors in Papua New Guinea pay 60%+ of their income as debt settlement while 14% of the people pay 50% to 60% of their income for the same, which is quite an alarming financial situation for those individuals. 13% of people in debt dedicate 40% to 50% of their income to loan and mortgage payments while 15% dedicated 30% to 40% of income for same. Things are looking brighter for 13% of individuals as they only pay 20% to 30% of their income for loan and credit card repayment.

Distribution by type of debt in Papua New Guinea

11% of debtors in Papua New Guinea confirm that real estate mortgages constitutes the main part of their outstanding debt while 27% say that credit card payments are the reason they are in debt. Auto loans were the main type of debt for 20% of people and personal loans rose at 39%. Lastly, student loans are the main source of debt for 3% of debtors in Papua New Guinea.

Good debt vs. Bad debt

Not all debt is bad. Good debt typically refers to borrowing money for investments that can increase in value or generate income over time like purchasing a home or acquiring student loans. On the other hand, bad debt involves borrowing for things that fail to generate lasting value like high-interest credit card debt used for non-essential expenses like luxury items or vacations.

Loan Affordability Index in Papua New Guinea

Besides measuring the loan-to-income ratio, we asked couples of Papua New Guinea how many times in a year they defaulted or were unable to pay their due credit card or loan payments on time. Understanding how often people default on their due payments is one of the indicators of the cost of living and economic situation.

Frequency and percentage of people who failed to pay their monthly credit card or loan payments on time last year.

Housing costs, accommodation, and housing affordability in Papua New Guinea

Rent Cost in Papua New Guinea

Monthly Rent Prices

Studio apartment monthly rent cost

340 PGK

520 PGK

1,400 PGK

MINIMUM

AVERAGE

MAXIMUM

$91

$140

$360

1-bedroom apartment monthly rent cost

520 PGK

820 PGK

2,100 PGK

MINIMUM

AVERAGE

MAXIMUM

$140

$220

$550

2-bedroom apartment monthly rent cost

690 PGK

1,000 PGK

2,700 PGK

MINIMUM

AVERAGE

MAXIMUM

$180

$270

$730

3-bedroom apartment monthly rent cost

820 PGK

1,400 PGK

3,700 PGK

MINIMUM

AVERAGE

MAXIMUM

$220

$360

$990

Furnished apartment monthly rent cost

1,600 PGK

4,100 PGK

8,200 PGK

MINIMUM

AVERAGE

MAXIMUM

$440

$1,100

$2,200

Townhouse monthly rent cost

1,400 PGK

2,100 PGK

5,900 PGK

MINIMUM

AVERAGE

MAXIMUM

$360

$550

$1,600

House monthly rent cost

1,600 PGK

4,100 PGK

8,200 PGK

MINIMUM

AVERAGE

MAXIMUM

$440

$1,100

$2,200

Villa monthly rent cost

2,100 PGK

5,200 PGK

8,200 PGK

MINIMUM

AVERAGE

MAXIMUM

$550

$1,400

$2,200

The monthly rental cost of a studio apartment in Papua New Guinea ranges between 340 PGK and 1,400 PGK, meanwhile the cost of monthly rental of a one-bedroom apartment can be anywhere from 520 PGK to 2,100 PGK. Two-bedroom rentals rate ranges between 690 PGK and 2,700 PGK per month. The monthly rental for a three-bedroom apartment ranges from 820 PGK to 3,700 PGK. The average rent of a townhouse in Papua New Guinea is around 2,100 PGK while house rental costs can be as high as 4,100 PGK per month. Finally, if you want to rent a villa, expect to pay anywhere from 2,100 PGK to 8,200 PGK per month.

Apartment and house prices in Papua New Guinea

Cost of buying a property

Studio apartment price

69,000 PGK

100,000 PGK

210,000 PGK

MINIMUM

AVERAGE

MAXIMUM

$18,000

$27,000

$55,000

1-bedroom apartment price

82,000 PGK

140,000 PGK

520,000 PGK

MINIMUM

AVERAGE

MAXIMUM

$22,000

$36,000

$140,000

2-bedroom apartment price

140,000 PGK

410,000 PGK

820,000 PGK

MINIMUM

AVERAGE

MAXIMUM

$36,000

$110,000

$220,000

3-bedroom apartment price

460,000 PGK

690,000 PGK

2.1M PGK

MINIMUM

AVERAGE

MAXIMUM

$120,000

$180,000

$550,000

Townhouse price

590,000 PGK

1.4M PGK

5.2M PGK

MINIMUM

AVERAGE

MAXIMUM

$160,000

$360,000

$1.4M

House price

690,000 PGK

4.1M PGK

5.9M PGK

MINIMUM

AVERAGE

MAXIMUM

$180,000

$1.1M

$1.6M

Villa price

820,000 PGK

4.6M PGK

6.9M PGK

MINIMUM

AVERAGE

MAXIMUM

$220,000

$1.2M

$1.8M

The average price of a studio apartment in Papua New Guinea can range from 69,000 PGK to 210,000 PGK depending on location. One bedroom cost can be anywhere from 82,000 PGK to 520,000 PGK. A villa can cost you 4.6M PGK on average with prices ranging from 820,000 PGK to 6.9M PGK.

House / apartment prices to income ratio

Property prices in Papua New Guinea can be x105 to x203 multiples of the monthly income depending on the property and the income of the person. On average, property prices are approximately x105 multiples of the average monthly salary in Papua New Guinea.

Rent to income ratio

The average rent-to-income ratio in Papua New Guinea is around 30%. This means that people pay 30% of their income for rent. Those figures can range from 20% to 40% depending on the salary, location, and type of property.

Housing affordability index

The housing affordability index measures how affordable accommodation is in a particular place. This can measured in multiple ways, the most common being housing expenditure to total expenditure ratio and the rent to income ratio. The housing expenditure ratio is a figure reported by individuals on the percentage they allocate for housing. Rent to income ratio is calculated by dividing the average monthly rent by the average income. Because these values are both percentages, we can find their average and get the best of the two worlds.

Property Taxes

Real estate owners pay property taxes to local tax authorities, which are determined by the assessed value of their property. Typically, these taxes are paid once a year. Property tax funds contribute to community development, financing infrastructure improvements, public services, and local education initiatives.

Home Maintenance Costs

Home maintenance costs encompass various expenses associated with the upkeep and repair of a residence. These expenditures include regular tasks such as lawn care, pest control, and HVAC system servicing, as well as occasional repairs and renovations like fixing leaks, painting, or replacing appliances.

Urban vs. rural living costs

Urban living typically entails higher housing and transportation costs due to demand and limited space, while rural areas generally offer lower housing expenses but may have higher prices for goods and services. The differnce in rental rates between urban areas and rural areas can be as high as 300% in some cases.

Monthly costs and expenses of energy and basic utilities in Papua New Guinea

Energy, electricity, water, gas, internet, and mobile cost in Papua New Guinea

Utility Bill Cost / Electricity + Water + Gas / Couple

61 PGK

210 PGK

1,400 PGK

MINIMUM

AVERAGE

MAXIMUM

$16

$55

$360

Internet and cable cost

21 PGK

41 PGK

55 PGK

MINIMUM

AVERAGE

MAXIMUM

$5.5

$11

$15

Mobile phone bill and charges

16 PGK

27 PGK

82 PGK

MINIMUM

AVERAGE

MAXIMUM

$4.4

$7.3

$22

The average monthly energy and water consumption of couples is around 210 PGK. The cost of internet and WiFi ranges from 21 PGK to 55 PGK with 41 PGK being the average internet bill. Finally, the average monthly mobile charges is around 27 PGK but can range between 16 PGK and 82 PGK depending on consumption. Mobile charges include both calling minutes as well as data packages.

Energy / Utility expense to income ratio

The average utility-to-income ratio in Papua New Guinea is around 6%. This means that people pay 6% of their income for energy, water, internet, and mobile charges. Those figures can range from 3% to 10% depending on salary and location.

Food Prices, Dining Expenses, and Grocery Costs in Papua New Guinea

Prices and cost of goods and services in Papua New Guinea

Dining out, food, and beverages costs. Price variations for common food items.

Fast food combo meal price

4.1 PGK

8.2 PGK

14 PGK

MINIMUM

AVERAGE

MAXIMUM

$1.1

$2.2

$3.6

The average price of a regular combo meal at a fast food outlet or chain like McDonald's, Pizzahut, or KFC in Papua New Guinea is approximatly 8.2 PGK with meal cost ranging from 4.1 PGK to 14 PGK. The typical combo meal consists of a burger, french fries, and a drink.

Restaurant meal for one price

14 PGK

21 PGK

41 PGK

MINIMUM

AVERAGE

MAXIMUM

$3.6

$5.5

$11

If you are planning to have a nice meal at a mid-range restaurant, expect to pay anywhere between 14 PGK and 41 PGK with 21 PGK being the average price of a plate for one person at a regular restaurant in Papua New Guinea.

Fine dining meal for one price

27 PGK

41 PGK

160 PGK

MINIMUM

AVERAGE

MAXIMUM

$7.3

$11

$44

The price range of a meal at fine-dining restaurant is 27 PGK to 160 PGK with the average cost being 41 PGK for one person. This is what you would expect to pay a top-tier diner in Papua New Guinea.

Beverage prices, cappuccino, latte etc..

3.4 PGK

5.5 PGK

8.2 PGK

MINIMUM

AVERAGE

MAXIMUM

$0.91

$1.5

$2.2

The average price of a regular beverage like cappuccino or latte at Starbucks, Costa, or similar coffee shops and cafes in Papua New Guinea is around 5.5 PGK. Price ranges between 3.4 PGK and 8.2 PGK depending on the type of beverage, the size, and optional add-ons.

Grocery and market costs

Large bottle of milk price

2.7 PGK

3.3 PGK

4.1 PGK

MINIMUM

AVERAGE

MAXIMUM

$0.73

$0.87

$1.1

The average price of a large bottle of milk in Papua New Guinea is 3.3 PGK. The maximum what you would pay for milk is 4.1 PGK and the minimum being 2.7 PGK depending on the brand of milk and other properties.

12 eggs price

2.1 PGK

2.7 PGK

4.1 PGK

MINIMUM

AVERAGE

MAXIMUM

$0.55

$0.73

$1.1

A dozen eggs costs around 2.7 PGK on average with 2.1 PGK and 4.1 PGK being the lower and upper limits respectively.

Fresh whole chicken price

4.7 PGK

6.1 PGK

8.6 PGK

MINIMUM

AVERAGE

MAXIMUM

$1.2

$1.6

$2.3

The price range of a fresh whole chicken in Papua New Guinea is between 4.7 PGK and 8.6 PGK depending on the size of the chicken and whether it is oraganic or not. The average price is approximatly 6.1 PGK.

Pack of beef price

5.5 PGK

8.2 PGK

16 PGK

MINIMUM

AVERAGE

MAXIMUM

$1.5

$2.2

$4.4

The price of a regular pack of beef or meat is around 8.2 PGK. A pack of beef contains around 1Kg or 1lb depending on packing.

Medium bag of rice price

2.2 PGK

3 PGK

4.3 PGK

MINIMUM

AVERAGE

MAXIMUM

$0.59

$0.80

$1.1

A bag of rice in Papua New Guinea costs around 3 PGK on average with prices rangeing between 2.2 PGK and 4.3 PGK depending on the brand and quality.

Bag of tomatos price

0.82 PGK

1.1 PGK

2.1 PGK

MINIMUM

AVERAGE

MAXIMUM

$0.22

$0.29

$0.55

A bag of tomatoes costs anywhere from 0.82 PGK to 2.1 PGK. A bag of tomatoes denotes 1Kg or 1lb depending on location.

Bag of apples price

1.5 PGK

1.9 PGK

3.2 PGK

MINIMUM

AVERAGE

MAXIMUM

$0.39

$0.51

$0.84

A bag of apples costs 1.9 PGK on average. A bag of apples denotes 1Kg or 1lb depending on location.

Grocery and food expenditure to income ratio

The average grocery-to-income ratio in Papua New Guinea is around 26%. This means that couples spend 26% of their income on grocery and basic household items. The expenditure can range from 18% to 32% depending on salary and location.

Expenditure on food and grocery for couples