The Real Cost of Starting a Family
August 30, 2017
If you and your partner are in your late 20s or early 30s, deciding to start a family could have a huge financial impact on your lives – but how much does it really cost and what planning do you need to do?
In this article we examine the cost of having and raising a child in Australia today, and offer some financial tips for new and would-be parents.
Fact: having children is a major expense
There’s no doubt about the fact that children bring joy and fulfilment to our lives, provided that we can afford to have them – and these days, it’s easier said than done.
With the cost of living rising ever-higher in Australia today, budgets are stretched across the income spectrum – making it that much more difficult to budget for a new family member.
What the numbers tell us
Recent data from the Household, Income, and Labour Dynamics in Australia (HILDA) survey paints a picture of Australians working hard to afford their monthly expenses as housing costs continue to rise.
This financial reality is having an interesting effect on family planning decisions – for example:
- Would-be parents are delaying having children. Women typically have their first child between the ages of 25 and 29, while men become fathers at 30-34 years old.
- 75% of Australian mothers and 91% of fathers maintain a full-time career while parenting their children.
- 65% of families use some type of childcare service, usually at their own expense These expenses cost between $28 and $111 per day on average.
Solution – family planning meets financial planning
The rising cost of living and childcare costs (which have almost doubled over the past decade) make it essential for couples to plan financially before they grow their families.
Estimating the monthly cost of raising a child, learning to budget as a family instead of as a couple, and providing for your family’s future while covering their present expenses, are just some of the skills that you will need before you turn your full attention to the challenges and thrills that parenting has in store for you.
Before you make the decision to start a family, make sure your finances are in excellent shape – contact Lou on 1300 LYFEGROUP today and let us guide you every step of the way.
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