The cost of raising children
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A recent income and wealth report released has shown that the average middle-income Aussie family are spending about $812,000 to raise a couple of children to the age of 24. This approximate cost indicates since a previous report, that the cost of raising kids has increased significantly by 50% since 2007.
The data jointly compiled by National Centre for Social and Economic Modelling (NATSEM) and AMP highlights the importance of a family budget and ensuring that families do not over commit with regards to debt. In addition, a savings plan of some sort to cover future expenses for the family including when children start school.
The biggest cause for this is mainly due to the increase cost of living in Australia. These items include food and utility bills and transportation costs to service the family. The report found that middle income earners are spend an additional $143,000 on their grocery bill and an extra $159,000 on transport costs to raise two children.
Teenagers and young adults are getting smarter knowing how much it costs to leave to home. Mum cooks dinner and washes the clothes, no huge financial responsibility.
The age group costing families the most are mainly the children aged between 18 and 24 years which cost more per week, with the second and third child costing much less than the first child purely on the basis that mum and dad have spoilt the first child and bought most of the equipment, furniture and toys.