Cost of Raising Kids

//Cost of Raising Kids

Being a parent is the most important and rewarding role you’ll ever play in your life. While the hours are long and the pay is poor, the satisfaction is enormous.

But, whether it’s learning the piano, early morning swimming lessons or ballet classes, the reality is, as your kids grow, the costs could rise with them!

Will your finances keep up with your kids?

According to a recent AMP report, the cost of raising children has grown by 50% in five years, while household incomes have only risen by 25%.

Private education accounts for much of the cost for high income families, but as tablets replace textbooks, expectations in the classroom are changing across the board.

Many parents are now planning ahead to give their children the best possible start in life.

Will your finances keep up with your kids?

$812,000 Cost of raising two children for a typical middle-income family (weekly gross income of $2,274).
$1.1 million
Cost of raising two children for a high-income family (weekly gross income of $4,984.)

We can help with solutions to manage the costs

As interesting as it is to know the costs, it’s more important to get some help with possible solutions. There are several strategies that could help:

  • Maximising the equity in your home to invest in your kids future
  • Creating a structured long term savings plan for your kids
  • Reducing the interest you pay on your home loan to free up cash, and
  • Finding better ways to keep track of your money and manage your spending.

Like some help?

There are financial paths that can help you keep up with the costs and set your children up for the best. Why not talk to us today? Contact Damien Jordan on 03 9853 4637 or email

1 Source: AMP.NATSEM Income and Wealth Report: The cost of raising children in Australia, Issue 33, May 2013 visit; Australian Scholarships Group; Australian Bureau of Statistics.

What you need to know

This website 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.

If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments.


A ‘Starter’ is commonly referred to as a person


An ‘Accumulator’ is commonly referred to as a person

Pre Retirees

A ‘Pre-Retiree’ is commonly referred to as a person


When becoming a ‘Retiree’, these people will be satisfied