3 things you should know about the cost of raising kids

Estimated reading time
 5 min

Learn all about

• The cost of education and how it can change
• How budgeting might help you manage any increased expenses
• Affording the essentials as well as the extras (like extracurriculars)
• Putting your kids on your health insurance and the family Medicare card

With great parenting power comes great (financial) responsibility. So let's make understanding the cost of raising a child in Australia your new superpower.

It’s time to fine-tune your financial senses and get clued up on three common costs.
 

1. Giving your kids a great education

There’s nothing more valuable to a child than a good education. It can teach them how to make friends, give them essential life skills, and help to nurture their sense of self. If you plan to put your little ones in daycare, school fees might start earlier than you think.

Early learning

There’s no denying it, childcare ain’t cheap (at least in this economy). But don’t panic just yet, the Australian Government does offer a means-tested childcare subsidy to support everyday parents with the cost of keeping kids in care. The subsidy is based on a few factors, like your income, the hours you work, and the number of children you have. You can calculate your estimate using this handy online tool.

Primary and secondary education

The costs involved in educating your kids at ‘big school’ will depend on a few factors. Of course, your choice to go public or private will be the biggest driver, but other things like where you live can determine schooling costs and availability.

• Public schools are primarily funded by the government and often don’t charge parents school fees, though you may still have to pay a small financial contribution to the school.
• Private and independent schools often set their own fees, but the government can play a small role in funding too. Private tends to be a lot more expensive than public, so it’s a good idea to find out the fees upfront and compare schools in your area.

  Quick tips:

• If you are enrolling more than one child into the same school, there might be a discount available.
• Got a certain school in mind? Then make sure you live in the school’s zone. This can make a difference when enrolling your child. You could also rent in that area first if you can’t buy or aren’t ready with your deposit.
• In some states, you can pay a fee to get your child onto a private school’s waitlist the moment they’re born. Do your research to see which private schools do this, and if it’s someone you’d like to budget for.
   

2. Other essential everyday expenses

Adding kids to the mix means more mouths to feed, bodies to dress and rooms to clean. So, naturally, the costs of everyday essentials will grow along with your family.

Below are some of the essentials most families will need and some ways you can save:

• Nappies, bottles, baby formula, cleaning products and other grocery items – Try buying in bulk where you can, and you’ll be surprised at how much you save over the year.
• Clothing, uniforms and shoes – Consider buying second-hand clothes for your kids (including uniforms), as they’ll grow out of them in the blink of an eye.
• Extracurricular activities – After-school sports and activities usually come with separate fees, so find out what you’re up for, what your kids are into and plan accordingly.
• Transportation – Speaking of extracurriculars, the more they do, the more petrol you’ll guzzle. So a good tip is to try to line up activities close to home or sign them up with friends so you can carpool!
   

3. Keeping your kids happy and healthy

Kids tend to have an enviable sense of invincibility. But while they may think they’re untouchable, they’re arguably even more accident-prone than adults, so a trip to the doctor is likely somewhere in your future. If you do manage to avoid the ER, there are some essential GP appointments you’ll need to make early on, for things like vaccinations and that endless procession of childcare bugs.

• Medicare – Be sure to have your child on your Medicare card and register yourselves together as a family. Hot tip: even if your kids are listed on your Medicare card, if you haven’t linked them to you on the system, their expenses won’t add towards your shared safety net. You can find out more about how to do it on the Services Australia website.
• Private health – If you have a health insurance policy, you might want to switch over to a family policy. This will cover your kiddos for emergencies, like broken bones, and extras cover them for other things like dental procedures (did you need braces? Odds are your little ones will too), and support for their mental health. Check out our top tips for saving on private health insurance.