Having children is a significant life decision. Along with the joys of parenthood come many significant financial challenges. The expenses can quickly add up from the cost of food and clothing to diapers and childcare. That's why it's so important to have a solid financial plan before you start a family.
The Cost of Raising Children In Australia
The cost of raising a child in Australia can be substantial. According to a study conducted by the Australian Institute of Family Studies, the cost of raising a child from birth to the age of 17 can be anywhere between $140,000 to $170,000. This includes basic needs such as food, clothing, housing, and education, but does not include the cost of childcare or private schooling.
Childcare, in particular, can be a significant expense for families. The Australian Bureau of Statistics reports that the average weekly cost of formal care for a child under five years old is about $478.
Furthermore, the costs of raising a child will likely increase as your child gets older. For instance, the costs of education and extracurricular activities can add thousands of dollars per year to the cost of raising a child.
The Different Stages In Children's Lives
Many parents find that budgeting for a baby can be a challenge. After all, babies grow rapidly, and their needs change frequently. However, there are a few general guidelines that can help you stay on track:
Pregnancy and Birth Costs
These include medical costs for prenatal care, delivery, and hospital stay. Also, consider other costs like maternity wear and setting up a nursery.
Infancy to Pre-school Age
This period includes expenses like diapers, baby food, baby gear, clothes that need constant replacing, and possibly childcare.
School Age
Expenses often rise during this stage. In addition to costs for school supplies and uniforms, you'll need to account for any extracurricular activities or sports that your child might want to participate in.
Teenage Years
As teens prepare for adulthood, costs may include a car, higher food bills, money for social activities, and university or vocational training fees.
How a Financial Planner Can Help
A financial planner in Perth can help you set and achieve your long-term financial goals. They will work with you to create a budget and recommend how to save. You will also receive guidance on successfully planning for different stages of your child's life.
No matter your goal for the future, having a solid financial plan in place is essential. Perth Tax People can help you create a plan to provide for your children through all stages of life. We have experts in all areas of personal finance who can assist you with everything from retirement planning to college savings. Contact us today to secure your family's financial future.
