How much does it cost to raise a child in Australia?
Written on the 22 March 2019 by Arrow
Raising a child will provide you with countless experiences that money can't buy. But it is still an expensive business. Here's your guide to the likely cost of raising a child in Australia.
With over 300,000 babies born in Australia every year according to the Australian Institute of Health and Welfare, more and more families are adapting to life with little ones. We run through a few of the big milestones to help you calculate the likely cost of kids.i
One simple way to start planning is to use ASIC's parental leave calculator to establish your likely income over the course of parental leave. You can change the parameters of the ASIC calculator to assess how your earnings could be affected by taking more or less time off.ii
Returning to work will likely mean that the household income is increased, but when figuring out when to take the leap, consider the likely cost of child care for your little ones. There are a number of different types of child care to consider, as CareforKids.com.auiii outlines, all range significantly in cost. As well as listing approximate costs on the website, CareforKids.com.au also has a tooliv to help you calculate the approximate cost of your preferred type of child care.
There are government benefits available for families. To find out more and to learn about what benefit may apply to you, check the Australian Government's Family Assistance Guide.v
Aside from any tuition costs, there are also uniforms, sports clubs, school trips and lunchboxes to think about.
Ultimately, the cost of education depends on a number of factors, so if you'd like to find out more about your situation ASIC's MoneySmartsite has plenty of information on calculating how much your family may need to save.vi
Holiday costs increase too, with the average family in Australia saving $77 per week for their next trip away, according to the same ASIC research.
Having children is the most remarkable and fulfilling experience, but it's also a huge amount of responsibility. Talk to us and we can help ensure you have properly budgeted and planned your finances into the future to make sure that you are prepared and confident to raise a child.