Baby talk is (not) cheap as 56% of Aussie couples underestimate just how much it costs to raise a child. The Choosi Cost of Kids Report 2023 revealed the estimated annual average spend on child(ren) is $12,823 per household. Aussies spend an average of $12,823 on their kids per year.
It found that the cost of raising 2 children would likely range from $474,000 to $1,097,000 over the course of their childhood. For 1 child, that's an estimate of $13,166 to $30,472 every year or $237,000 to $548,500 over 18 years.
Cost of a baby per month
Based on the annual cost of having a baby, the monthly cost is between $650 and $700. It's common to spend more leading up to your baby's birth and in the first few months as you purchase your baby's furniture and toys, and then around $600 per month after this period.
Living cost in Australia for one person: $2,835 per month. Average living expenses for a couple: $4,118 per month. Average monthly living expenses for a family of 4: $5,378.
As they grow up, you can expect to pay for additional expenses like their hobbies, sports teams, or higher food costs for your growing teenager. The USDA estimates that parents can expect to pay between $15,438 and $17,375 a year raising a child in 2022, which can vary based on region and household income level.
For married-couple families with one child, expenses averaged 27% more per child than expenses in a two-child family. For families with three or more children, per child expenses averaged 24% less on each child than on a child in a two-child family.
Want to plan your living expenses in Australia? We'll help you. There is no “one size fits all” plan for all but it is understood that an individual may need approximately $20,000 each year and an average family needs more than $50,000 a year to get by in Australia.
As such, the average median household income (Purchasing Power Parity) in Australia was 94,107 AUD (USD 63,391) for the year 2021. This puts Australia in the top 10 countries for the highest median household income.
In general, you should aim for the average wage or higher. In other words, a good salary in Australia is anything between $90,000 and $108,000 a year or $7,500 to $9,000 a month. The median income is $72,000 a year, which is a good reference point as to how much you should be earning.
Keep in mind that each person has a different experience of pregnancy and parenthood, which can make it difficult to put an exact figure on the cost of a baby. But, generally speaking, it's estimated that the first child will cost anywhere between AUD$3,000 and AUD$13,000 in the first year alone.
How much pocket money should you give? A survey by CommBank found that almost 80 per cent of parents in Australia give their children pocket money. For kids aged between 4-6 years, the average amount per week is $7.17, while in the 7-9 years age bracket it drops slightly to $7.04.
Australia
Another safe country with a low crime rate, Australia is among the best for raising a family. There are many programs funded by the government to support families. High-quality education comes free for all children. That applies to healthcare services as well.
There are plenty of playgrounds in most places throughout Australia, and a lot of hotels have swimming pools. Furthermore, there are also beaches, public swimming pools, and even some natural waterholes where it's safe to swim. Australia is great for kids!
How much does child care cost? Childcare cost per day in Australia ranges from about $70 to $190 for long day care options. The national day care average cost is $118.36. However, if you have eligibility for Child Care Subsidy (CCS payment), you could pay substantially less.
So, if you earn one dollar over $45,000 you are in the richest half of the country. Officially, the average wage is $75,000 a year, but that is skewed by a small number of very high income earners.
Approximately 58% of the Australian population is considered to be part of the middle class. What is the average annual income range for the Australian middle class? The average annual income range for the Australian middle class is between AUD 46,000 and AUD 140,000.
According to Expatistan, this means Australia is one of the most expensive places to live (ranked 13 out of 74). Generally, a higher cost of living means that basic expenses have become – well, expensive.
It then goes on to describe those middle income Australians as individuals earning between $120,000 and $160,000 a year.
If you make $80,000 a year living in Australia, you will be taxed $18,067. That means that your net pay will be $61,933 per year, or $5,161 per month.
Research has showed that, while having one child is associated with a gain in happiness, having a second is associated with a drop in happiness for mothers.
The truth is that having one child as opposed to two or more allows for a much more controlled environment, and there are also fewer relationships in the family to potentially complicate the overall family dynamic.