If you and your spouse are considering starting a family but are not sure how much this will affect your finances, check out this article to find out in which areas in your life your costs will increase.
You and your partner may be contemplating having children and are wondering what impact this decision will have on your finances. In this article, you will find out in which areas of life your costs will increase as you raise your child.
How much will having kids impact your finances?
Many Australian families rely on childcare to take care of their kids when both parents are working. The cost of childcare is currently around $90 per child per day. Considering that many children attend day care for several years, this can really add up.
Having one parent stay home to take care of the child could alleviate this cost but not every family has that luxury. Once the child is past the age of five, though, this expense goes away.
If you decide to put your child in public school, then education is essentially free. If you opt for private school, then you are looking at approximately $40,000-$300,000 per child from Kindergarten up to year 12 - note this varies significantly by school. That total is inclusive of uniforms, transport and extracurricular activities. For children in public school, parents will also need to pay for textbooks, uniforms, sports, etc which add up to about $900 a year.
Education-related costs typically increase as the child grows older up until university graduation.
Between birth and the age of two, children do not eat much food and, therefore, do not constitute a major change in your food budget. However, food consumption increases as your child grows older in order to fuel their changing bodies and soon you will have to food shop for three. This becomes a major cost and adds another around 30 per cent to you and your spouse’s food budget.
Clothing is a cost that is constant as children grow. Unlike adults, children are always outgrowing their clothes and regularly need new clothing. As children grow older, they may seek to express themselves through their dressing which may lead to higher costs.
This is a cost that largely depends on the choices that you make as a family. If you choose to travel or spend large amounts of money on the latest gadget or toys then your costs will skyrocket. However, there are a number of low-cost recreational activities you can indulge in that put a greater emphasis on quality time together and that will help you to keep recreational costs in check.
This information is provided by DPN Pty Ltd ABN: 94 630 700 186 Australian Credit Licence 514759. DPN Finance Pty Ltd is an authorised credit representative 504129 and related entity of DPN. Credit for Dream Big 100% Offset and Work Smart 100% Offset is provided by Adelaide Bank a division of Bendigo and Adelaide Bank Ltd, ABN 11 068 049 178 and Australian Credit Licence 237879. Casa Capace Operations Pty Ltd, NDIS provider number 4050038018 trading as Casa Capace.