THE cost of raising children has hit the $1 million mark as parents fork out for expensive toys, lessons and technology, research suggests.

Social researcher Mark McCrindle said the Federal Government's estimate of $384,543 to raise a child to 18 was wrong,

Adding the cost of electronics, private tutoring and sports and dance classes, and considering the average child now stayed at home until 24, the real cost to the Australian parent of raising children was $1,028, 093, he said.

"Parents have more money per child, and spend more money per child than their parents did," he said.



"Generation Z, born since 1995, are the most financially endowed generation of children ever. Every child has their own set of everything. We are not in the era of shared toys or hand-me-downs," he said.

He said the average family had 2.7 children and, with 30 per cent of primary students and 40 per cent of high school students in non-government education, parents were more prepared than ever to invest in their kids.

"Parents are spending their after-tax dollars on something that is provided for free, . . . because they want the best for their children."

In a national report on Generation Z, toys and gift trends for Christmas, Mr McCrindle also found the average Aussie child had more than 100 toys but that parents threw out or gave away only five toys a year.

Almost all Aussies admit spending more than $100 on toys per child each year, with a small portion saying they splashed out $500.

He said the strong trend this Christmas was to revert to traditional pastimes, such as science kits, wooden toys and educational games over simplistic plastic toys.

He said nostalgic wooden train sets, toolkits and dolls were making a comeback, along with outdoor toys.

"Free play is out, structured activities are in, and for Gen X hyper-parents, toys have given way to learning tools," Mr McCrindle said.

Mother of two Sarah Tehan, 41, said with every child wanting an iPod or laptop, costs were huge. "There is pressure on people to feel they have to buy them because other kids at school have them. You want them to fit in," Ms Tehan said.

The McCrindle research was carried out with 4500 Australians.

A good reason for abortion.

It is a garbage figure. And how do I know? the same way every other parent that has raised 2-4 children and wondered how they managed to spend $2-4M on their kids when they didnt even earn 1/2 that much in total.

This figure is based entirely on a Brady Bunch figure where the parents ahve unlimited money and the kids get everything they want.

it is pure rubbish.

longweekend58 wrote on Sep 6^th, 2010 at 7:43pm:

It is a garbage figure. And how do I know? the same way every other parent that has raised 2-4 children and wondered how they managed to spend $2-4M on their kids when they didnt even earn 1/2 that much in total. This figure is based entirely on a Brady Bunch figure where the parents ahve unlimited money and the kids get everything they want. it is pure rubbish.

Considering my wife wont be working for about 10 years, then there alone is around $600k.

Plus there is the opportunity cost of her not working and having that disposable income to invest.

It also factors in things like career progression etc.

You gotta spend your money on something. This is not the real cost, just a reflection of how much money people have.

That's why I didn't have kids with anyone.
I didn't fancy having to work 12 hours a day or 2 jobs
to bring them up.

I`ve seen some of the bargai basement models aroud the place.

:D

bargain

The cost of the birth, baby bonus, Family tax payments etc would all be taken into consideration to get to this figure for the average person.

Even if you raise your children on a moderate wage - the cost is still phenomenal and ongoing. There is no cut off point at 16 or 18 as there used to be a couple of decades ago. Children live at home longer today unfortunately.

The cost of the child before it has even arrived in the world was over A$5,000 looking at my Medicare Statement of Benefit!!!

Just supply their needs and don't cater to their every whim, and you could save yourself a fortune. Life is much less expensive when you don't have to keep pace with the Jones's.

Just say the average worker earns $50,000 a year, over 18 years that's $900,000.

Ex Dame Pansi wrote on Sep 7^th, 2010 at 10:30am:

Just supply their needs and don't cater to their every whim, and you could save yourself a fortune. Life is much less expensive when you don't have to keep pace with the Jones's.

But everyone wants their child to have the best.

I don't begrudge a cent spent on my little girl.
She 'cost' us A$5k before she was even born in fees.

Though admittedly Medicare give back over A$1k and the rest is claimable on the tax return.
It's still a fair whack up front for families.

But most will do it for less than half of this figure.  Suyre, if you buy them the latest toys whenever they want them, it adds up, but seeing as how a cardboard box or a balloon is more appealing at a young age than a $100 toy, you just need to spend a bit wiser.  As they grow, its also much more expensive to buy them a new console and games rather than a football...

Andrei.Hicks wrote on Sep 7^th, 2010 at 10:53am:

Ex Dame Pansi wrote on Sep 7th, 2010 at 10:30am: Just supply their needs and don't cater to their every whim, and you could save yourself a fortune. Life is much less expensive when you don't have to keep pace with the Jones's. But everyone wants their child to have the best. I don't begrudge a cent spent on my little girl. She 'cost' us A$5k before she was even born in fees. Though admittedly Medicare give back over A$1k and the rest is claimable on the tax return. It's still a fair whack up front for families.

You said you got the baby bonus. Remember the golf clubs or membership fees? You must have come out about even.

Ex Dame Pansi wrote on Sep 7^th, 2010 at 11:17am:

Andrei.Hicks wrote on Sep 7th, 2010 at 10:53am: Ex Dame Pansi wrote on Sep 7th, 2010 at 10:30am: Just supply their needs and don't cater to their every whim, and you could save yourself a fortune. Life is much less expensive when you don't have to keep pace with the Jones's. But everyone wants their child to have the best. I don't begrudge a cent spent on my little girl. She 'cost' us A$5k before she was even born in fees. Though admittedly Medicare give back over A$1k and the rest is claimable on the tax return. It's still a fair whack up front for families. You said you got the baby bonus. Remember the golf clubs or membership fees? You must have come out about even.

;D

The baby bonus wasn't spent on golf clubs!
It was spent on new things for the little one. I paid for new golf clubs same time as the baby bonus (and they weren't anywhere near $5k!) but we still spent a lot of money on the new arrival.

That's just how it is.

Overall we were about even yes, but in regard to capital outflow it's a lot of money to be paying up front.

Look at the obstatrician fees. A$5,300. That still has to be paid up front before you can claim anything back.

It's a lot of money.

Don't get me wrong, my little girl will want for nothing and I am proud to be able to give her what she will need. It's not a chore.

Quote:

Look at the obstatrician fees. A$5,300. That still has to be paid up front before you can claim anything back.

Orr...you could use a public hospital and not pay anything.

... wrote on Sep 7^th, 2010 at 11:26am:

Quote: Look at the obstatrician fees. A$5,300. That still has to be paid up front before you can claim anything back. Orr...you could use a public hospital and not pay anything.

Have a look around a public hospital, spend some time in their waiting areas, look at the people in there and then re-evaluate that suggestion.....

Andrei.Hicks wrote on Sep 7^th, 2010 at 11:28am:

... wrote on Sep 7th, 2010 at 11:26am: Quote: Look at the obstatrician fees. A$5,300. That still has to be paid up front before you can claim anything back. Orr...you could use a public hospital and not pay anything. Have a look around a public hospital, spend some time in their waiting areas, look at the people in there and then re-evaluate that suggestion.....

LOL.  I'm guessing you just assume it's packed to the rafters with dirty poor people?  Nothing like it...my first child was born in a public hoispital, and my 2nd will be soon.  Nothing wrong with it, although you're right, the waiting times are a bit over the top.  Not me who has to wait though.

... wrote on Sep 7^th, 2010 at 11:31am:

Andrei.Hicks wrote on Sep 7th, 2010 at 11:28am: ... wrote on Sep 7th, 2010 at 11:26am: Quote: Look at the obstatrician fees. A$5,300. That still has to be paid up front before you can claim anything back. Orr...you could use a public hospital and not pay anything. Have a look around a public hospital, spend some time in their waiting areas, look at the people in there and then re-evaluate that suggestion..... LOL.  I'm guessing you just assume it's packed to the rafters with dirty poor people?  Nothing like it...my first child was born in a public hoispital, and my 2nd will be soon.  Nothing wrong with it, although you're right, the waiting times are a bit over the top.  Not me who has to wait though.

Each to their own.
Like I said I am not for one minute complaining about a single dollar I spend on my little girl.

I am merely pointing out that whilst pansi and the like may say 'well you get it all back' etc people need to realise that you have to pay it up front in the first place.

Medical fees are A$5k+ before you get anything back, now they have removed the baby bonus for a lot of people they also have to pay for all the incidentals like cots, prams, clothes etc etc etc

Babies cost a lot of money and some families really struggle.

Seriously, we spent maybe $1000 tops on our first child, as everyone is only too happy to give gifts.  Second child will be even less as we already have everythng.  
rememeber that baby stuff is on;ly used for a very short itme before they outgrow it, so baby markets are they way to go - why pay $100 for a brand new toy when you can get it in as-new condition for $5?

... wrote on Sep 7^th, 2010 at 11:45am:

Seriously, we spent maybe $1000 tops on our first child, as everyone is only too happy to give gifts.  Second child will be even less as we already have everythng.   rememeber that baby stuff is on;ly used for a very short itme before they outgrow it, so baby markets are they way to go - why pay $100 for a brand new toy when you can get it in as-new condition for $5?

I don't disagree with a lot of that BUT

1) A cot
2) A stroller
3) A pram
4) A change table
5) Chest of drawers
6) Wardrobe
7) Clothes (ones not bought by relatives)

That's my recollection of the post arrival expense and if you've done all that for under $1k, then you've got some cracking black market contacts.

All I can say is, thank god for family, the salvos and baby markets.  And thank the guv for giving me $5000 to put towards a new motorbike.   ;)

... wrote on Sep 7^th, 2010 at 11:56am:

All I can say is, thank god for family, the salvos and baby markets.  And thank the guv for giving me $5000 to put towards a new motorbike.   ;)

Our first is due at the end of November, and we are hitting the baby markets up soon.

The joys of bargain hunting.

Quote:

But everyone wants their child to have the best.

The best what? The best time, or the best toys?