How Much Does it Really Cost to Have and Raise Kids in Australia?
This question comes up regularly and the cost varies greatly depending on the studies you read. where you live and the lifestyle you have.
This post will cover common expenses (including medical or special needs), average expenses and how to reduce them.
It is LONG but you can jump ahead to whichever section applies to you using the headings or images to quickly see what is relevant.
Disclosure – we do use affiliate links on the site for products and services we use and recommend. Find the full disclosure here.
Over $1,000,000???
Various studies in the past few years have shown the cost is anywhere from $286,000 to over $1,000,000.
It depends on what you include (e.g. extra housing costs such as another room can be $200,000 more, though some studies focus only on clothing, schooling, childcare etc.)
In 2012, a study by the University of Canberra determined the average was $812,000 but under $500,000 for lower incomes and over $1,000,000 for higher incomes.
Suncorp found the cost to be $286,000.
When you look at all the variables such as age, parents working vs not working (including the cost of superannuation and career loss for the at home parent), the financial cost can get even higher.
However, having a child is generally not solely a financial decision.
Before you start, check to see if you are eligible for things such as family tax benefits, rent assistance, the childcare rebate or benefit etc. We list state by state benefits and free vouchers here.
These can help a lot towards the cost of raising children.
Housing
We all have to live somewhere. Single people have options such as boarding with others, Couchsurfing, backpacking, hostels, work options with accommodation such as being au pair etc.
All of which can drastically reduce your housing expenses.
Some of this is possible with kids, however, most families opt for a home instead.
Budget Housing
Depending on your location and income, budget housing can be things such as housing commission homes, social housing or co-ops.
Alternatively, living rurally often means more affordable housing, though you need to factor in other expenses being higher such as food and petrol.
Cheaper Rent and Mortgages
The first step is to rent or buy within your means. Recent years have made that seem impossible due to the unprecedented increases.
Many areas that were previously affordable are not anymore.
Families are moving further out but many remain homeless where I currently live.
At this stage, sadly, finding an affordable home might mean moving elsewhere.
If you don’t want to move, you can look at using Airbnb to help pay the rent/mortgage.
You can find our top tips here showing how we make money with it. Or get a boarder, rent out the garage etc.
Food
Check out 21 ways to reduce the cost of groceries for my top ideas right now.
Also check out how to get free and super cheap groceries here.
If your teens can use their phones, they can cook! Teach your kids from a young age and it will save you both time and money.
45% off your first box with Marley Spoon and further discounts.
Up to $140 off Dinnerly, spread across your first few boxes.
Get up to $200 off with HelloFresh, spread across your first 6 boxes for new and returning customers. Conditions apply.
Get easy meals from $2.19 per plate with this discount from EveryPlate. Get healthy meals delivered straight to you.
Shopback and Honey both give cash back or coupons.
Have them all installed, download the apps and add them to Chrome. This way, whenever you are shopping, you get the best deal.
Cheap Meal Ideas
Protein and fibre help you feel full for longer and meat isn’t the only way to get it.
Meals based on vegetables, beans, legumes etc all help.
Dhal, curries, risottos, pasta bakes and similar are cheap as well as filling.
Avoid sugary foods as the sugar simply fills for a bit then you get a slump making kids hungrier (and probably hangry at the same time).
Instead, opt for healthier options.
Buy fruit and veg in bulk at markets, check out the butchers at the closing time along with supermarkets for reduced items.
If they must have takeaway, always search for a discount code online before ordering from anywhere.
Transport
Cars are expensive when you add up buying them, maintenance, insurance, fuel and repairs.
Check out how to live without a car for some ideas.
Always use fuel apps such as 7/11 and FuelMap to get the best prices on fuel.
Combine errands so you only use your car as needed.
Get your kids to ride their bikes places when they are old enough and check public transport or carpooling.
Saving Money With Your Car
If you want to keep your car, there are things you can do to reduce the cost such as locking in the price of fuel when you see it cheap through the fuel watch app.
Ensuring your tyres are inflated properly, you are using the correct fuel, your car is well maintained and you don’t drive around with unnecessary weight in the car (e.g. things you don’t need clogging up the boot).
On top of the day to day running of the car, service it and clean it regularly.
Both of these things help with your resale value which is important.
Education
Whether you go public or private, there are costs involved with educating your children.
School uniforms, shoes, bags, lunchboxes, excursions, books, fundraisers, teacher gifts, school fees and voluntary contributions.
For a full guide on ways to reduce these expenses, check out how to afford school expenses.
Also, bteach your kids about finances to help set them up for their future.
Entertainment
Younger kids are easier to entertain for free usually than older kids.
Free entertainment such as the beach, hiking, snorkelling etc is great with older kids though.
Check your area for things to see and do for whatever ages your kids are.
We love to travel as a family and do it through finding travel for free or super cheap and even making money by travelling as a family.
Look for Freebies
Your first step for entertainment should be looking for free things (check out our huge list of Aussie freebies and this post with Aussie birthday freebies).
Check out festivals and events in your area, do the touristy things, play at the river/beach/lake or in the bush if you have some near you.
Movies and other expensive entertainment aren’t the only options.
If you do want to do movies and similar, look for ways to get free tickets such as through online surveys, using apps or market research.
Always look for discount codes online or join loyalty programs too. We have a big list here of ways to get discounts or there are 12 ways to get coupons and discounts here.
Reducing the Cost
Can you volunteer with their sports to get free registration?
Does your school offer programs or discounts for families to certain sports?
Shop around clubs and compare prices.
Childcare
In two-income homes, it is not uncommon for it to feel like one parent is working purely to pay for childcare.
While it is expensive, in my opinion, it is important for both partners to maintain career options.
It’s not only the income you need to factor in but also superannuation with the compound interest effect it has the sooner you contribute.
Career progression, staying relevant, your experience and qualifications all need to be included.
With childcare, shop around and look at all your options.
We’ve used after-school care, done childcare swaps with other mums, had an au pair and at another time a housekeeper.
Think about your needs and budget then find the best option for your circumstances.
Make sure you are registered for the child care benefit and child care rebate if you are eligible for it too.
Health
This is where the budget can get blown if your kids need speech therapy, occupational therapy or anything else.
Autism assessments cost thousands and while there is some funding to help after a diagnosis, it doesn’t go far.
Not to mention the usual illnesses, time off work for you to look after them or because you get sick too etc.
Going public where possible, using your health insurance if you have it and claiming everything you can when you use it plus budgeting for medical expenses all help.
Find ways to save on your health including medical, dental, glasses, ambulance cover and more here.
Birthdays and Celebrations
Growing up we had a party every second year with friends and every year with family.
Most were at home and fairly simple.
Now, the parties are much more elaborate with jumping castle, petting zoos and more.
Hosting parties for your own kids, presents for other kids parties, Christmas and other celebrations all add up.
The things which helped us were:
– Have a clear budget
– Set the kids expectations so they know from the get-go what the deal is in your house for their birthday parties, the budget for friends presents etc.
– Look for ways to come under budget.
And another article that shares tips to afford those expensive invitations and events or politely decline.
Christmas and Other Celebrations
Considering most celebrations we know about ahead of time, they can be budgeting in.
Christmas is at the same time every year, as are the sales so plan ahead.
If it’s hard to stretch the budget, check out this post to show you how to easily get $2,000 in time for Christmas (starting in October).
Babies and Toddlers
Saved money by purchasing things second hand, using hand-me-downs, buying only what you need etc.
The car seat, pram and cot mattress should be new for health and safety reasons but you can buy them on sale.
Consider cloth nappies.
Buy nappies and formula when they’re on sale.
Overall, the baby stage was the cheapest stage.
They grow so quickly, you don’t need much.
Get a good support network, swap items with each other and buy things on sale.
Make your own baby food, check clearance racks for clothes or shop at second-hand stores and you won’t need to spend much.
A Few Extra Tips
We used the laundry sink for the baby bath instead of buying one.
If you think you need something, try borrowing it for from a friend or family member to see if you use it and really do need it or if it’s just a want because a magazine said it is essential.
Older Kids
Most articles focus on saving money when kids are babies or in primary school, which much of this article has as well.
Some of the tips can be applied for all ages, but with teenagers and even adult kids (for example children studying) there can be significant expenses.
Plus, if you are eligible for Family Tax Benefit, this is when it decreases!
Technology Expenses
Schools require students to have technology now, sometimes even in primary school.
Phones, computers, gaming devices, cameras and other equipment needed for various hobbies or school projects add up quickly.
Shop around, ask the school if they get a deal with any particular store and always look at the insurance and protection options.
Get cases, screen covers and other things to protect them from damage to help them last longer.
You can also look at refurbished or second-hand options.
While your kids probably want the latest and greatest, dropping $2,000+ for a phone and laptop might not be in your budget.
Clothing and Accessories
We include make-up, clothing, shoes and everything related here.
Teens want what they want and it is up to you what you do.
Some families have a set budget per year and it is up to the teens how they spend it.
Others go shopping at certain times of the year or in sales.
Whether you buy the brands they want or not is your choice.
Sign up to loyalty programs and VIP clubs to get welcome offers, look for discounts online and include your children in the choices.
You can encourage teens to make their own money to pay for extras.
Cars
Cars are expensive whether you buy a cheap one and spend a lot on repairs or buy a new one.
Encourage your child to get their licence, invest in some driving lessons (it is incredible how many rules change and how much needs to be corrected for the driving test).
Teach your kids to budget and save for a car. Or if you want to, you can choose to buy your kids one.
One note, we took better care of our cars that we had to pay for ourselves than our friends did, who were given one by their parents.
Those who were given one all had car accidents or trashed the cars because they hadn’t worked for them.
Higher Education
It’s your choice if you pay for university or other higher education.
We have more affordable options than the USA and various scholarships plus interest-free loans to help with education.
Making More Money
Your income only stretches so far, but you or your kids can make money on the side.
Encourage your kids to budget and save for things they want plus look for other ways to make money.
Kids can be quite resourceful and it’s not just lemonade stands anymore.
They could start their own business for under $100 or find ways to make money on social media.
As an adult you have more options.
Check out 43 ways for single mums to make money (really, they can be used by anyone) to give you some ideas.
What do you do to save money when raising kids?
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