Zippy Financial Zippy Financial

A Family Financial Affair

financial affair

Grey hair, worry lines, high blood pressure – these are some of the physical costs associated with the joys of parenthood. Then there are the financial costs, which are just as draining. The last time any research was done into the cost of raising children in Australia, back in 2012, for an average family the cost of raising two children was $812,000. Since then, that figure has kept steady; it now comes in at an extra $2,000 per child, at $816.000. But it’s still a huge sum. No wonder the Australian birth rate is on the decline! And with children staying at home longer, the costs of raising a family are dragging on and on.

Each stage of your child’s life is unique and comes with its own financial burdens, but if you are realistic about your financial situation, there are ways to save money and ease the economic strain of parenthood:

Ways to Cut Costs and Reduce the Financial Burden of Parenthood


Setting up home for a new baby can be very expensive. From the ages of 0-3, the main cost of raising a child is the stuff you suddenly find you cannot live without: a change table, pram, high chair. While it is natural to want the best for your baby, you can save a fortune by opting for pre-loved baby equipment. There is always a glut of second-hand baby essentials out there and most parents, once their children are older, are happy to declutter and give away their old baby things. Or, if it must be new, keep it simple. Your baby does not know the difference between a basic IKEA highchair and a luxury one. And both are only going to end up covered in food… or worse!


With children between the ages of three and five, the biggest expense associated with parenthood is childcare. Unfortunately, there is no way of cutting corners when it comes to quality supervision for your children, but there is government assistance. The average cost of childcare is $8.50 per hour, but you can usually get a child care benefit to help pay child care. Before returning to work, it is essential to sit down and crunch the numbers on the true cost of returning to work. Travel expenses, work clothes, bought lunches, child care – all these things can add up, meaning that sometimes, being a stay-at-home parent with part-time work can be more financially (and emotionally) rewarding than rushing back to a full-time job.

School-age Children

Those same work-family lifestyle choices are just as imperative once your children reach school age. The cost of your child’s education is very much down to you: whether you send them to the local state school, a church school or a private school. You need to work out what you can best afford; and what you are willing to sacrifice, both in terms of material possessions but also time spent away from your children working. If you opt for a private education, remember to take into consideration the extra costs that come with private schools: overseas trips, pricey uniforms and costly extracurricular activities. But wherever your children go to school, it is time for you to start teaching them the true meaning of money. Once their circle of friends expands, they will start to experience the peer pressure associated with the latest fashions and technology. They need to understand how much effort goes into earning the money needed to purchase a $30 Nike drink bottle instead of the dollar-shop variety. By giving them an insight into how the family budget works, they are less likely to put undue pressure upon it by demanding the latest gadgets.


Unfortunately, even once your children are old enough to support themselves, it does not mean they will. Few children are economically self-sufficient by the age of 20, whether they are out working or in higher education. But if you start your financial planning early, a lot of the fiscal pain can be removed from your child’s progression into adulthood.

The cost of a three-year degree is set to hit $50,000 by 2025 – that is a considerable sum. But by creating a savings plan for your children when they are still young, you can ensure that your children do not finish their studies with a huge debt hanging over them.

There are lots of different types of savings accounts and ways to save – but many tie up your money for long periods of time, and at the moment term interest rates are low.

Alternatively, by talking to your trusted mortgage broker you could arrange new finance on your home and use a mortgage offset account to save for your child’s future instead. Your regular savings will help reduce your mortgage – earning a far better return than currently offered by many savings accounts – and your money will always be on hand, should you need to make a sudden withdrawal.

Becoming a parent is the most important step in a person’s life. And with a little advance financial planning, family planning should be one of the most rewarding – give or take the odd tantrum along the way.

Don’t let financial stress put a damper on the joys of parenthood. Trust Zippy Financial to help you reduce costs and achieve your financial goals. Keep in touch with us for expert advice on managing your finances and achieving your goals.

Frequently Asked Questions

What is the estimated cost of raising two children in Australia?

The last research done in 2012 estimated the cost of raising two children to be $812,000. This figure has slightly increased to $816,000 per child.

What are some ways to cut costs during the baby stage?

Opting for pre-loved baby equipment or keeping it simple with basic items can help. For example, a basic IKEA highchair serves the same purpose as a luxury one but at a fraction of the cost.

How can parents manage the high costs of childcare for toddlers?

Government assistance is available to help pay for childcare. It’s essential to crunch the numbers to see if returning to work full-time is financially viable compared to part-time work or being a stay-at-home parent.

What should parents consider when choosing a school for their children?

Weigh the costs and benefits of different types of schools—state, church, or private—and consider the extra costs that may come with private schools, such as overseas trips and pricey uniforms.

How can parents prepare for the financial burden of their children’s higher education?

Creating a savings plan early on or using a mortgage offset account can help avoid a large debt burden for your children after they finish their studies.

What role does financial planning play in easing the economic strain of parenthood?

Financial planning can help parents be realistic about their financial situation and find ways to save money. It can also prepare them for future expenses, such as higher education costs.

Phone: 1300 855 022


Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business. 

About the Author:   

Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.   

Connect with Louisa on Linkedin.   

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial. 


Service Locations

Comparison Rate calculated on a secured loan amount of $150,000 for a term of 25 years. WARNING: This Comparison Rate is true only for the example given and may not include all fees and charges. Different terms, fees and other loan amounts might result in a different Comparison Rate. Fees and Charges Apply. Terms and Conditions are available on request.