Being a parent is, in my opinion, the most wonderful and rewarding thing in life… but not something that comes cheaply. Just buying the milk to keep our three kids in the lifestyle to which they’ve become accustomed (porridge in the morning) seems be a large expense!
In 2012, the NATSEM (University of Canberra) Income and Wealth Report showed that for a typical middle-class Australian family, the cost of raising two children from birth to adulthood was $812,000.
I repeat, $812,000.
The figure was $448,000 back in 2002, so if you’re planning on having more kids or haven’t yet started a family, then the numbers are only going to continue climbing.
To put this in context, since 2007 incomes in Australia have gone up around 25%, while the costs of raising two kids has gone up about 50%.
That puts pressure on the family budget because then where does the money come from to invest for the future, to invest for retirement, to grow and protect your wealth?
If you’ve got kids or one day plan to have a family, then it’s worth investing the time to get your financial future on the right track. There are ways to be really smart with how you manage your money, so equip yourself with knowledge to ensure the joy of having kids doesn’t derail your financial future.