Starting a family is a significant financial commitment, especially during a time when the increased cost of living is causing many Aussies to tighten their budgets. But just how much does it cost to raise children in Australia these days and can you afford it? Canstar Blue investigates.
What is the cost of raising a child in Australia?
In its July 2025 survey, Canstar Blue asked 920 Aussie parents how much raising their child or children cost them each month. We found that on average, parents are spending $1,361 per month on child-related costs. That equates to $16,332 per year.
These figures are higher than data from our July 2024 survey, which put the monthly cost of raising two children at $1,073, or $12,876 per year. This means Aussie families with two children are now spending $288 more per month raising their kids than they were a year ago, indicating the overall rising cost of living and increased housing costs are putting significant financial pressure on parents.
Of the parents surveyed by Canstar Blue, 50% said affording groceries was a cost concern, followed by utilities and education costs. Notably, Millennial parents were the most concerned about the cost of groceries (55%), followed by Generation X (53%) and Generation Z (41%).
Here’s what Aussie parents say they’re most concerned about:
- 50% food groceries.
- 45% utilities costs.
- 43% education.
- 39% childcare costs.
- 37% other groceries (e.g. nappies/wipes).
- 37% mortgage repayments.
- 34% extracurricular activities (e.g. sport, music).
- 33% entertainment (e.g. birthday parties, school holiday activities).
- 20% rental costs.
- 24% baby products (e.g. pram, cot, high chair).
What is the financial impact of raising kids in Australia?
As the cost of raising children rises, so too are parents’ concerns about how they can sustain a decent lifestyle and afford necessities, such as child care and education. Seventeen percent of parents surveyed by Canstar Blue said their take-home pay has decreased because they’re working less hours, while 24% said they are reluctant to switch jobs because they need stability for their families.
When comparing the cost of raising kids today with their parents’ generation, 31% of parents said they think they have it tougher. Indeed, the financial pressures of raising children in the current economy has made 23% of parents hesitant to have more children.
The median size of an Australian family has decreased from 2.6 people in 2016 to 2.5 people in 2024, marking the first decrease in household size since 2000. The Australian Bureau of Statistics data predicts that by 2046 the number of single child families in Australia will have risen by 45%, while the number of families with more than one child will have risen by just 30%.
Extracurricular activities are also costing parents more these days. Data from the Australian Sports Commission’s AusPlay 2023 survey found families’ median spend on sport for children aged 14 and under was $500 per child, compared to $650 in 2023.
When asked by Canstar Blue how the cost of raising children had impacted their finances, parents said:
- 40% have noticed the cost of raising their child/children has increased over the past year.
- 23% are hesitant to add another child/children to their family due to the rising cost of living.
- 24% worry they will not be able to cover the costs raising their child/children due to the rising cost of living.
- 20% worry their child/children are missing out because they cannot cover the increasing cost of raising them.
How are Aussie parents cutting costs?
In an effort to keep up with their bills and daily living expenses, Aussie parents are cutting costs and making sacrifices where they can. Of those surveyed by Canstar Blue, 47% of parents said they’ve reduced the amount they spend on dining out, going to the movies and other social activities. Forty-seven percent said they’ve cut back on discretionary spending, such as streaming services and takeaway food.
Others have made sacrifices in more significant areas, such as moving into cheaper rental accommodation, cutting back on the amount of electricity and water they use and taking on additional work hours or a second job.
You can see a breakdown of how Aussie parents are lowering the financial impact of raising their kids below:
- 47% cut back on socialising (e.g. going to the movies, dining out).
- 47% cut back on discretionary spending (streaming, takeaway food).
- 28% cut back on essential spending (groceries, home repairs).
- 23% reduced the amount of entertainment activities they offer their children.
- 21% cut back on purchases for children (clothes, shoes, toys, electronics).
- 21% taken on additional work hours or a second job.
- 20% cut back on utilities use.
- 10% moved to cheaper rental accommodation.
- 9% re-mortgaged or reduced mortgage by moving to a cheaper property.
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Money-saving tips for raising kids
Saving money on the cost of raising kids doesn’t always have to mean cutting back or going without. There are small changes you can make to your spending habits that can make a big difference to your budget. Fifty percent of Aussie parents told Canstar Blue affording groceries is one of their biggest financial concerns. It’s no surprise this is the case when food prices have increased by 22 per cent for working households since June 2020 but there are ways to save without sacrificing.
- Buy supermarket brands: Canstar data shows that switching half of the weekly shop to cheaper brands could save a family of four $2,184 a year.
- Buy in bulk: make sure you’re looking at the price per item or measurement on the shelf price label as you could be saving more in the long run by buying more for less.
- Use supermarket rewards programs: Woolworths’ Everyday Rewards and Coles’ Flybuys points can certainly add up if you make the most of the special offers.
Aussie parents said they also worry about being able to afford extracurricular activities for their kids, and 23% have already cut back on how many entertainment activities they give their kids. To combat this, government schemes are available to fund children’s sport and activities across the country. The state-government funded sports vouchers are mostly available for kids aged four and over and can be used to pay for a variety of sports and activities. Click your state or territory below to see the vouchers available in your area.
- Queensland: $200 FairPlay vouchers
- New South Wales: $50 Active and Creative Kids vouchers.
- Victoria: $200 Get Active Vouchers
- South Australia: $100 Sports Vouchers
- Western Australia: $300 KidSport voucher
- Northern Territory: $100 Sport Vouchers
- Tasmania: $100 Ticket to Play vouchers
Utilities costs are also a major concern for Aussie parents who are struggling to make ends meet. One of the simplest ways to reduce your bills is to make sure you’re on the best plan for your families’ needs. Canstar Blue’s free comparison tools can help you find the best option for your budget and needs.
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