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.

Compare accounts below

Rates accurate as at: November 21st, 2018 Learn about our information service
Rates last updated November 21st, 2018
$
$
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
ING Savings Maximiser
2.80%
1.00%
1.80%
$0
$0 / $0
Ongoing, variable 2.80% p.a. when you link to an ING Orange Everyday bank account and deposit $1,000+ each month and make 5+ card purchases a month. Available on balances up to $100,000.
HSBC Serious Saver
3.10%
1.40%
1.70%
$0
$0 / $0
Introductory rate of 3.10% p.a. for 4 months, reverting to a rate of 1.40% p.a. Available on balances below $1,000,000.
RaboDirect High Interest Savings Account
3.05%
1.80%
1.25%
$0
$0 / $0
Introductory rate of 3.05% p.a. for 4 months, reverting to a rate of 1.80% p.a. Available on balances below $250,000
Bankwest Hero Saver
2.60%
0.01%
2.59%
$0
$0 / $0
Ongoing, variable 2.60% p.a. rate when you deposit at least $200 each month and make no withdrawals. Available on balances up to $250,000.
AMP Saver Account
2.55%
2.10%
0.45%
$0
$0 / $0
Introductory rate of 2.55% p.a. for 4 months, reverting to a rate of 2.10% p.a. Available on balances below $5,000,000.
AMP Bett3r Account
2.25%
1.50%
0.75%
$5
$0 / $0
With AMP's bundled Bett3r account, get three linked Pay, Spend and Save accounts. Earn a competitive, ongoing rate of up to 2.25% on your Save account balance when you deposit $2,000 into the Pay account each month from a source that is not another AMP Bank account.

Please note: The 2.25% maximum variable rate is earned only on your Save account balance. To calculate interest earned, enter your initial and monthly deposit amounts for the Save account only, not including any money that’ll be in your Spend or Pay account.
HSBC Flexi Saver Account
2.50%
1.25%
1.25%
$0
$0 / $0
Ongoing, variable 2.50% p.a. when you deposit $300+ each month (other conditions apply). Available on balances up to $5,000,000.
MyState Bank Bonus Saver Account
2.60%
0.80%
1.80%
$0
$0 / $0
Ongoing, variable 2.60% 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.
AMP SuperEdge Saver Account
2.05%
2.05%
0.00%
$0
$0 / $0
Link to your SMSF. Ongoing, variable 2.05% p.a. when you link to AMP SuperEdge Cash Account or a different transaction account for your SMSF in another bank. Available on the entire balance.
ANZ SMSF Cash Hub
1.50%
1.50%
0.00%
$0
$0 / $0
This account is for SMSF trustees to access their SMSF cash balance, to make payments and investments, and to receive income to the one account.

Compare up to 4 providers

Rates last updated November 21st, 2018
$
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
No foreign ATM or transaction fees.
$0 monthly account fee.
Enjoy no minimum ongoing balance or transaction requirements and the flexibility to hold up to 10 currencies. Apple Pay and Google Pay available.
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, NAB Pay for Android or NAB PayTag for iPhone. 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.
HSBC Day to Day Transaction Account
Visa
$0
$0
Open an account and easily switch your regular payments over from your current bank.
$0 monthly account fee.
Through your linked Visa debit card, you can access exclusive shopping, travel and restaurant deals here and abroad through HSBC's home&Away Privilege Program.
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 2.25% p.a. interest on your AUD balance.
AMP Bett3r Account
Visa
$0
$2,000
Earn 1.50% interest. Manage your budget effectively with a bundle of accounts.
$5 waivable monthly account fee.
Earn 1.50% interest on your balance. Monthly account fee waived if you deposit at least $2,000 a month from a source that is not another AMP bank account. Reach your savings goals with a bundle of linked Pay, Spend and Save accounts.
NAB Classic Banking with Platinum Visa Debit Card
Visa
$0
$0
$10 cashback on contactless purchases, $0 foreign transaction fee and complimentary travel insurance.
$10 monthly account fee.
Receive $10 cashback when you spend $1000 on contactless purchases. Complimentary travel insurance, transport accident insurance, purchase protection insurance and more when you meet eligibility criteria.

Compare up to 4 providers

Rates last updated November 21st, 2018
$
Name Product 3 Mths p.a. 4 Mths p.a. 6 Mths p.a. 12 Mths p.a. 24 Mths p.a. 36 Mths p.a. Min Deposit Interest Earned
ME Term Deposit
2.60%
2.60%
2.80%
2.80%
2.85%
3.00%
$1,000
AMP Term Deposit $100,000+
2.35%
2.40%
2.65%
2.65%
2.75%
2.85%
$100,000
RACQ Bank Term Deposit
2.35%
2.60%
2.55%
2.70%
2.70%
2.80%
$1,000
MyState Bank Online Term Deposit
2.50%
2.35%
2.70%
2.75%
2.80%
-
$5,000
Firstmac Term Deposit
2.55%
-
2.75%
2.65%
2.75%
-
$5,000
AMP Term Deposit $25,000+
2.35%
2.40%
2.65%
2.65%
2.75%
2.85%
$25,000
AMP Term Deposit $5000+
2.15%
2.20%
2.45%
2.45%
2.55%
2.65%
$5,000

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.

Shirley Liu

Shirley Liu is a program manager at finder, formerly the publisher for Banking and Investments. She is passionate about helping people make an informed decision, save money and find the best deal for their needs.

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Related Posts

Savings Account Offers

Important Information*
ING Savings Maximiser

Maximum Variable Rate

2.80

Standard Variable Rate

1.00
RaboDirect High Interest Savings Account

Maximum Variable Rate

3.05

Standard Variable Rate

1.80
AMP Saver Account

Maximum Variable Rate

2.55

Standard Variable Rate

2.10
Bankwest Hero Saver

Maximum Variable Rate

2.60

Standard Variable Rate

0.01

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