The average cost of raising kids in Australia

Starting a family is a significant financial commitment, especially during a time when the increased cost of living is causing many Aussies to tighten their budgets. But just how much does it cost to raise children in Australia these days and can you afford it? Canstar Blue investigates. 

What is the cost of raising a child in Australia?

In its July 2024 survey, Canstar Blue asked 2,356 Aussie parents how much raising their child or children cost them each month. We found that on average, parents are spending $1,073 per month on child-related costs. That equates to $12,876 per year. 

When broken down into cost per number of children, Aussie parents are paying $1,005 per month for one child. The cost jumps to $1,214 for families with two children, $1,303 for families with three children and $1,414 for families with four children.

These figures are considerably higher than 2018 data from the Australian Institute of Family Studies, which put the monthly cost of raising two children at $736, or $8,840 per year. This means Aussie families with two children are now spending $478 more per month raising their kids than they were six years ago, indicating the overall rising cost of living and increased housing costs are putting significant financial pressure on parents. 

Of the parents surveyed by Canstar Blue, 56% said affording groceries was their biggest cost concern, followed by utilities and childcare costs. Notably, Baby Boomer parents were the most concerned about the cost of groceries (64%), followed by Generation X (58%) and Millennials (56%). 

You can see a breakdown of the biggest financial concerns for Aussie parents below: 

• 56% of parents are most concerned about food groceries.
• 47% of parents are most concerned about utilities costs.
• 44% of parents are most concerned about education. 
• 38% of parents are most concerned about childcare costs. 
• 38% of parents are most concerned about entertainment (e.g. birthday parties, school holiday activities).
• 37% of parents are most concerned about other groceries (e.g. nappies, wipes).
• 36% of parents are most concerned about extracurricular activities (e.g. sport, music).
• 33% of parents are most concerned about mortgage repayments. 
• 31% of parents are most concerned about rental costs.
• 25% of parents are most concerned about baby products.

Shop Online

What is the financial impact of raising kids in Australia?

As the cost of raising children rises, so too are parents’ concerns about how they can sustain a decent lifestyle and afford necessities, such as child care and education. Fifteen percent of parents surveyed by Canstar Blue said their take-home pay has decreased because they’re working less hours, but 22% said they are reluctant to switch jobs because they need stability for their families. 

When comparing the cost of raising kids today with their parents’ generation, 29% of parents said they think they have it tougher. Indeed, the financial pressures of raising children in the current economy has made 23% of parents hesitant to have more children. 

The median size of an Australian family has decreased from 2.6 people in 2016 to 2.5 people in 2021, marking the first decrease in household size since 2000. The Australian Bureau of Statistics data predicts that by 2046 the number of single child families in Australia will have risen by 45%, while the number of families with more than one child will have risen by just 30%. 

Extracurricular activities are also costing parents more these days. Data from the Australian Sports Commission’s AusPlay 2023 survey found families’ median spend on sport for children aged 14 and under was $650 per child, compared to $580 in 2019.

When asked by Canstar Blue how the cost of raising children had impacted their finances, parents said: 

• 39% have noticed the cost of raising their child/children has increased over the past year.
• 23% are hesitant to add another child/children to their family due to the rising cost of living.
• 27% worry they will not be able to cover the costs raising their child/children due to the rising cost of living.
• 25% worry their child/children are missing out because they cannot cover the increasing cost of raising them.
• 15% say their take-home pay has decreased as they’re working less hours.

How are Aussie parents cutting costs?

In an effort to keep up with their bills and daily living expenses, Aussie parents are cutting costs and making sacrifices where they can. Of those surveyed by Canstar Blue, 46% of parents said they’ve reduced the amount they spend on dining out, going to the movies and other social activities. Forty-five percent said they’ve cut back on discretionary spending, such as streaming services and takeaway food. 

Others have made sacrifices in more significant areas, such as moving into cheaper rental accommodation, cutting back on the amount of electricity and water they use and taking on additional work hours or a second job. 

You can see a breakdown of how Aussie parents are lowering the financial impact of raising their kids below: 

• 46% cut back on socialising (e.g. going to the movies, dining out).
• 45% cut back on discretionary spending (streaming, takeaway food).
• 32% cut back on essential spending (groceries, home repairs).
• 28% reduced the amount of entertainment activities they offer their children.
• 26% cut back on utilities use.
• 24% cut back on purchases for children (clothes, shoes, toys, electronics).
• 23% taken on additional work hours or a second job.
• 12% moved to a cheaper rental accommodation.
• 9% remortgaged or reduced mortgage by moving to a cheaper property. 

Looking for a low-cost phone plan suitable for kids? Compare prepaid options in the table below.

Here is a selection of prepaid plans from Canstar Blue’s database, listed in order of standard cost, lowest to highest, then by data allowance, largest to smallest. Use our comparison tool to see a wide range of plans from other providers. This table includes products with links to referral partners.

Money-saving tips for raising kids

Saving money on the cost of raising kids doesn’t always have to mean cutting back or going without. There are small changes you can make to your spending habits that can make a big difference to your budget. 

Fifty-six percent of Aussie parents told Canstar Blue affording groceries is one of their biggest financial concerns. It’s no surprise this is the case when food prices have increased more than 17 per cent for working households since 2020 but there are ways to save without sacrificing. 

• Buy supermarket brands: you can save by choosing the supermarket brands instead of the big brand names.  
• Buy in bulk: make sure you’re looking at the price per item or measurement on the shelf price label, you could be saving more in the long run by buying more for less. 
• Use supermarket rewards programs: Woolworths’ Everyday Rewards and Coles’ Flybuys points can certainly add up if you make the most of the special offers. 

Aussie parents said they also worry about being able to afford extracurricular activities for their kids, and 28% have already cut back on how many entertainment activities they give their kids. To combat this, government schemes are available to fund childrens’ sport and activities across the country. Every year state governments release sports vouchers to encourage Aussie kids to get active. These vouchers are mostly available to kids aged four and over and can be used to pay for a variety of sports and activities. Click your state or territory below to see the vouchers available in your area. 

• Queensland:  $200 FairPlay vouchers 
• New South Wales: $50 Active and Creative Kids vouchers. 
• Victoria: $200 Get Active Vouchers 
• South Australia: $100 Sports Vouchers
• Western Australia: $500 KidSport voucher 
• Northern Territory: $100 Sport Vouchers
• Tasmania: $100 Ticket to Play vouchers

Utilities costs are also a major concern for Aussie parents who are struggling to make ends meet. One of the simplest ways to reduce your bills is to make sure you’re on the best plan for your families’ needs. Canstar Blue’s free comparison tools can help you find the best option for your budget and needs. 

• Compare Electricity Plans
• Compare Internet Plans and Providers
• Compare Gas Prices and Plans
• Compare Mobile Phone Plans
• Compare Solar Plans