The cost of raising children in Australia

Having children is a life-changing and joyous experience for most parents, but it also comes with added expenses that can push the budgets of even the savviest savers.

A 2018 government study shows that parents could expect to spend around $140-$170 a week to raise a child. With the increases to cost of living in since then, the reality is parents are likely paying a lot more.

What is the cost of raising a child in Australia?

There are a few different answers to that. We looked at a couple of studies and found the estimates ranged from $159,120 to $548,500 over 18 years.

A 2018 research by the Australian Institute of Family Studies (AIFS) shows that it costs low-paid families $340 a week to raise 2 children, a 6-year-old girl and a 10-year-old boy, which is roughly $170 per child. That's $8,840 every year or $159,120 for 18 years per child.

For unemployed families, the cost of raising 2 children of the same ages was $280 a week or roughly $140 per child. That's $7,280 every year or $131,040 for 18 years. Again, per child.

However, a 2013 report by the University of Canberra came up with completely different figures.

The earlier study created profiles for 3 different families: lower income, middle income and higher income. It found that the cost of raising 2 children would likely range from $474,000 to $1,097,000 over the course of their childhood.

For 1 child, that's an estimate of $13,166 to $30,472 every year or $237,000 to $548,500 over 18 years.

It's no secret that since then the cost of living has changed. The Consumer Price Index - which measures the average price change of goods and services - has gone up by 22% from 2018 to 2024. This accounts for the majority of child-related costs like food, utilities, and education. If we adjust the numbers from the 2018 AIFS, it's likely that the cost of raising two children is upwards now closer to $11000 per year for a low-paid family.

What are the biggest costs when raising a child?

In late 2021, Suncorp Bank revealed the costs of raising a child in Australia in its Cost of Kids report. The research surveyed a representative sample of Australians and targeted parents.

The report found that the cost of raising a child increased by more than 10% in the five previous years. Communication devices and technology were the single biggest expenses compared to the previous report in 2016. Parents spent 186% more on keeping their children connected each month, with a cost of $106 per child spent on computers, gaming consoles and mobile phones.

Finder survey: What events make Australians take out or adjust their life insurance coverage?

Why is it important to know the cost of raising a child?

If you understand the cost of raising a child, you can make important decisions in advance. You can start saving, create a support network, develop a budget and find affordable housing.

Anne Hollonds is the director of the Australian Institute of Family Studies. She said the cost of raising a child has long been of interest to potential parents, adding:

Understanding the potential cost of having kids also allows you to put an appropriate financial safety net in place. For example, life insurance or income protection insurance, which guarantee a wage if you become too sick or injured to work.

How can insurance help with the cost of raising kids?

Insurance can give your family an important safety net in case anything goes wrong. If you die or become too sick to work, life insurance and income protection mean the difference between falling behind on the mortgage or having enough money to pay for the best healthcare. Here's a summary of how they can help:

• Life insurance pays a lump sum if you're diagnosed with a terminal illness or if you die. The money can be used for whatever your loved ones like, whether that's paying off the mortgage, covering school fees or just keeping on top of everyday expenses.

• Income protection insurance replaces up to 75% of your regular wage if you ever become too sick or injured to work. Again, you can use it for whatever you like but it means you can focus on getting better rather than worrying about paying the bills.

We've put together a list of all the life insurance and income protection providers available on Finder. Click through for a personalised life or income protection quote. Not sure which one you need? Our life insurance vs income protection guide can help.

How much does pregnancy cost?

According to the Finder Parenting Report 2023, the average Australian spends $1,244 on medical expenses, such as hospital visits, throughout pregnancy. The cost largely depends on the choice of hospital system—public or private. The public system is significantly cheaper, averaging $726, while opting for the private system can lead to a bill of nearly $2,400.

Additionally, the study found that before having their first child, parents had over $41,000 in savings on average. Men typically saved more, with an average of $49,095, while women had around $32,667 set aside.

How much does childcare cost?

Data from Care for Kids show that the average cost of childcare in Australia is $134.99 a day, before subsidies. That's easily going to be the most expensive outgoing for lots of parents.

However, the price can vary significantly depending on where you are. In Sydney city centre, the average daily price jumped to $179.34 while Melbourne was $164.32 and Brisbane was $149.25. The costs in Perth are $168.50 and $116.23 in Adelaide.

Head further out and childcare becomes less expensive. New South Wales' Blacktown reported an average daily price of $114.89 while Victoria's Dandenong was $121.75 and Queensland's Bundaberg was $107.33.

To put the cost of childcare into perspective, an average-earning Australian couple with 2 young children is likely to spend around 15% of their income on full-time childcare costs based on data from the Organisation for Economic Co-operation and Development (OECD).

Thankfully, government benefits are available. Check the Australian government's Family Assistance Guide to see which ones apply to you.

Figures taken on 27 November 2024 from Care For Kids child care cost calculator.

How much does education cost?

Data from the Futurity Investment Group shows that parents can expect to spend an average of $92,170 over 13 years to send a child starting school in 2024 to a metropolitan public school.

Of course, that price balloons if they decide to send their child to a private school. In that case, they can expect to spend a whopping $316,944 on their child's education.

Costs vary considerably depending on which state your child goes to school in as well. Canberra takes the crown for Australia's most expensive Catholic education, while Sydney is in the lead for the highest Independent education, and Melbourne tops the list for government education expenses. Perth is the nation's most affordable city for an Independent education.

How much does it cost to teach your teen to drive?

Guiding your child to independence on the road comes with its costs. According to Right2Drive, depending on the state, you can expect to spend between $188 and $248 to progress from a Learner's Permit to the Provisional Stage in 2024. On top of that, driving lessons aren't cheap, with a 10-hour package typically ranging from $694 to $1,088.

The cost of raising a child can be more complicated

It's easy to spend more than the government's estimated figure on raising your child especially if you don't fall into the unemployed or low-paid category.

In 2019, women's media platform Mamamia asked 11 families to analyse their weekly spending per child. The figures ranged from a frugal $152 all the way to an eye-watering $863. Inflation since 2019 has likely bumped these numbers up quite a bit, making it even more expensive to pay for the sneaky expenses like replacing lost shoes and school equipment.

You also have to take into account the economic impact of taking time off work – either for parental leave, to raise your children for a few years or even just turning down overtime hours.

A 2023 report by the University of South Australia's Centre for Workplace Excelleence found that 34% of parents who took parental leave returned to their job with lower status or less reesponsibility. 44% of parents missed out on training opportunitites and/or opportuniies for promotion.

The same report found that 46% of mothers were ordered to do wokr below their level of competence while pregnant, and 23% received hints or signals from others that they should quite their job.

Non-monetary costs of having a child

Of course, money isn't the only thing you'll have to part with if you decide to have children. Social engagements, spare time and even career ambitions can all be impacted.

Finder surveyed over 1,000 parents in 2021 and found that one big impact on parents is how much time they spend driving their children around. Parents spend 3.5 hours per week on average driving their kids to school and other activities.

You might also have to make some changes to your career once you have kids. 29% of survey respondents switched to part-time eployment after giving birth.

We also spoke with 3 mums who shared their personal sacrifices as they became parents.

Written by

Gary Ross Hunter

Editor, Insurance

Gary Ross Hunter was an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

Gary Ross's expertise

Gary Ross has written 644 Finder guides across topics including:

• Health, home, life, car, pet and travel insurance
• Managing the cost of living

Co-written by

Cameron Thach

Insurance Content Writer

Cameron is the local insurance scholar at Finder. With a diverse background writing in independent education, web-3, and finance, his mission is to build helpful content and that speaks to readers in language they understand. See full bio