baby

Work out the costs of having a baby

Working out the cost of having kids.

For many young couples who are planning to spend the rest of their lives together, one of the main priorities on their minds is starting a family. There are many couples who would like nothing more than to be able to start a family unit but these days it is important to take into consideration the cost of having kids. In fact, this is something that needs to be considered not only by young couples who are thinking of starting a family but also by couples who already have children but are thinking of having more.

Whilst having kids is undoubtedly a wonderful, life changing experience for couples, the cost associated with having children cannot be ignored. Having kids without thinking about the cost will not only impact upon your own quality of life but also on that of your children. Planning and preparation is important for those who want to have children and part of this is to work out the cost of having kids.

Some people who do try and work out the cost of having kids make the mistake of only thinking about the initial costs associated with having kids. However, you need to bear in mind that you will be looking after and paying for your kids for many years to come – traditionally close to two decades and sometimes more! Therefore, you need to think over the long term rather than just looking at the first couple of years.

Some of the costs associated with having kids

There are many different costs that you need to take into consideration when having kids. Although the first child tends to be the most expensive, as most parents have to buy everything new rather than using second hand goods and hand me downs, all kids are going to cost you and the older they get the more you will end up spending on them in most cases!

Although there may be various benefits and rebates that you can claim as a parent, you will find that the amount that you need to spend compared to the amount that you can claim is far higher. Some of the necessary and common costs that are associated with having kids include:

  • Initial costs: The initial costs can be high when you have a child, particularly if it is your first child, as this means that there will be no hand me downs or pre-used items that you may have purchased for kids that you had previously. Costs include clothing, items such as bottles and sterilisers, cots and carriers, car accessories for transporting baby around, baby food and the variety of other products you need for feeding, bathing, clothing and looking after your new baby. When you have subsequent children, the initial costs are often much lower, as you will already have many of the items you need from your first child
  • Clothing and food: Remember that you will be paying for clothing and food for your child not just when he or she is a baby but as they grow older and until they reach adulthood and can fend for themselves. This can be a huge drain on the finances, particularly given the high cost of living
  • Educational costs: You will need to consider the educational costs involved in raising a child, even if he or she just goes to a standard school. The cost of education also extends beyond the school years, as you also need to think about the cost of college or university for your child in order to give them the best start in adult life
  • Other costs: There are many other costs that you will need to bear in mind when planning to have and raise kids, all of which can have a huge impact on finances. This includes everything from buying toys, books and ensuring that you are in appropriate accommodation to suit your family unit to paying for school trips, helping out with a car or other larger purchases later in life and more

Of course, the actual costs involved with having kids can vary based on your own individual circumstances but the above are just some of the common and necessary costs that are linked to having and raising a child. Many couples who are better off than the average couple in terms of their finances believe that they are in a better position to have and raise children financially, which may be true to some degree.

However, often those who have more money tend to spend more money on bringing up their child, such as paying for designer clothes or private education, which again can have the same impact as more modest spending by parents on lower incomes.

High interest savings account offer

UBank USaver

2.41 % p.a.

max rate

1.35 % p.a.

standard variable rate

High interest savings account offer

Ongoing, variable 2.41% p.a. when you link your USaver account to a UBank Ultra transaction account and transfer at least $200 per month into either account. The linked transaction account has no monthly fees and no international fees. Bonus interest available on balances up to $200,000.

  • Maximum Rate: 2.41% p.a.
  • Standard Variable Rate: 1.35% p.a.
  • Monthly deposit required: $200.00
  • Monthly fees: $0.00
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Rates accurate as at: September 21st, 2019 Learn about our information service
Rates last updated September 20th, 2019
$
$
months
Name Product Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit Interest Earned Product Description
UBank USaver
2019 Winner
UBank USaver
2.41%
1.35%
1.06%
$0
$0 / $0
Ongoing, variable 2.41% p.a. when you link your USaver account to a UBank Ultra transaction account and transfer at least $200 per month into either account. The linked transaction account has no monthly fees and no international fees. Bonus interest available on balances up to $200,000.
Rabobank Online Savings High Interest Savings Account
2.75%
1.30%
1.45%
$0
$0 / $0
Maximum variable rate of 2.75% p.a. for 4 months, reverting to a rate of 1.30% p.a. No deposit or withdrawal conditions. Available on balances below $250,000
AMP Saver Account
2.61%
1.65%
0.96%
$0
$0 / $0
Introductory rate of 2.61% p.a. for 4 months, reverting to a rate of 1.65% p.a. The bonus rate offer is for new AMP Saver customers only, and applies to the first $250,000 deposited.
ME Online Savings Account
2.35%
0.80%
1.55%
$0
$0 / $0
Ongoing, variable 2.35% p.a. rate when you link to a ME Everyday Transaction account and have at least one purchase with your Debit Mastercard using tap & go processed each week. Available on balances up to $250,000.
HSBC Flexi Saver Account
2.15%
0.65%
1.50%
$0
$0 / $0
Ongoing, variable 2.15% p.a. when you grow your balance by $300+ per month. Earn bonus interest even if you make withdrawals during the month. Available on balances up to $5,000,000.
Suncorp Growth Saver Account
2.05%
0.20%
1.85%
$0
$0 / $0
Ongoing, variable 2.05% p.a. when you grow your balance by at least $200 (excluding interest) and make no more than one withdrawal in the month. Available on the entire balance.
Bankwest Hero Saver
2.10%
0.01%
2.09%
$0
$0 / $0
Ongoing, variable 2.10% p.a. rate when you deposit at least $200 each month and make no withdrawals. Available on balances up to $250,000.
MyState Bank Bonus Saver Account
2.50%
0.80%
1.70%
$0
$0 / $0
Ongoing, variable 2.50% p.a. when you deposit at least $20 into the account each month and make five or more Visa Debit card transactions from a linked MyState transaction account.

Compare up to 4 providers

Rates last updated September 20th, 2019
$
Name Product Debit Card Access ATM Withdrawal Fee Fee Free Deposit p.m. Monthly Account Fee Product Description
HSBC Everyday Global Account
Visa
$0
$0
Special offer: $100 bonus for new HSBC customers.
Earn 2% cashback on tap and pay purchases under $100.
Enjoy no foreign ATM or transaction fees and the flexibility to hold up to 10 currencies. Apple Pay and Google Pay available. T&C's apply to $100 bonus and 2% cashback offers.
UBank USaver Ultra Transaction Account
Visa
$0
$0
Earn up to 2.41% p.a. interest on your linked savings account. No foreign ATM or transaction fees.
$0 monthly account fee.
You must open the UBank USaver savings account in order to get this account. Enjoy access to ATMs in Australia and overseas for free and a 0% foreign transaction fee for online purchases. Manage your spending with a built-in sweep facility that automatically moves money between your linked accounts based on the limits you set. Make contactless payments with Apple Pay and Google Pay.
NAB Classic Banking
Visa
$0
$0
Enjoy convenient, unlimited access to your money.
$0 monthly account fee.
Tap and pay with your NAB Visa Debit card or your phone using Apple Pay, Google Pay, Samsung Pay or NAB Pay for Android. Temporarily block your card at the touch of a button if you lose it.
ING Orange Everyday Account
Visa
$0
$0
No fees for any ATM in Australia or overseas.
$0 monthly account fees.
Enjoy $0 ATM withdrawal fees when you deposit $1000 and make 5+ card purchases per month. Get a competitive ongoing variable rate when linked with the ING Savings Maximiser.
Suncorp Everyday Options Account
Visa
$0
$0
Monthly account keeping fee waived for life.
$0 account keeping fee: Applies to all new accounts opened from 3 December 2018.
Save for your individual goals by linking to interest-earning sub accounts. Google and Apple Pay available.
Westpac Choice
Mastercard
$0
$2,000
Special offer: $50 cash bonus for new customers (T&Cs apply).
$5 account fee waived each month the deposit condition is met.
Monthly account fee waived if you deposit at least $2,000 a month, are under 21 or if you meet other eligibility criteria. Access more than 50,000 ATMs globally for free via the Global ATM Alliance.
Citi Global Currency Account
Mastercard
$0
$0
Hold up to 10 currencies.
$0 monthly account fee.
Enjoy one linked debit card to hold up to 10 currencies and receive foreign currencies for free. Earn up to 1.75% p.a. interest on your AUD balance.
Suncorp Everyday Basics Account
Visa
$0
$0
A simple everyday account with low fees.
$0 monthly account fee.
Enjoy no monthly account keeping fees as well as the option to pay using Google and Apple Pay. Free ATM withdrawals at 3000+ Suncorp and rediATMs.
St.George Complete Freedom Account
Visa
$0
$2,000
Special offer: $40 cash bonus for new customers who open an account online (T&Cs apply).
$5 account fee waived each month the deposit condition is met.
Monthly account fee waived if you deposit at least $2,000 a month. No account fees for students and customers under 21.
CUA Everyday Account
Visa
$0
$0
Enjoy flexible payment options and access to a wide network of ATMs.
$0 monthly account fee.
Access to Google, Samsung and Apple Pay. Enjoy fee-free cash withdrawals from 10,000+ ATMs across Australia. Deposit $1,000+ into this each month and receive bonus interest on a linked CUA eSaver Reward Account.

Compare up to 4 providers

Rates last updated September 20th, 2019
$
Name Product 3 Mths p.a. 4 Mths p.a. 6 Mths p.a. 7 Mths p.a. 12 Mths p.a. 24 Mths p.a. Interest Earned
UBank Term Deposit Account
1.80%
1.80%
1.80%
-
1.70%
-

Compare up to 4 providers

Rates are displayed for the terms and minimum deposit sizes listed in the table above. The rate you receive could vary depending on your deposit size and interest payment frequency.

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