Costs of raising children revealed

LOW-INCOME parents of two young children spend around $340 a week raising them.

New modelling published today by the Australian Institute of Family Studies suggests families with two primary school — aged children spend $140—170 a week raising each of them: the unemployed, $140, and low-income families, $170.

The biggest expenditure on the children was food ($77), followed by housing ($65) and education ($61).

Other costs include energy bills and transport.

Institute director Anne Hollonds said it was important that both parents and policymakers recognised the real costs of raising children.

“Policymakers need robust information to inform family policies, including the adequacy of minimum incomes,” Ms Hollonds said.

The study, by the University of New South Wales Social Policy Research Centre, estimated the cost of a “minimum income standard for healthy living”.

The figure differs from estimates from the National Centre for Social and Economic Modelling that middle-class families pay as much as $450 per child per week.

Professor Peter Saunders said the new modelling was based on ABS data showing what Australians buy, and relied on lower-cost choices by those on lower incomes.

“A series of focus group interviews with low-income families told us how they manage on their budgets, which turned up important trends, including clothes swapping for school uniforms and buying more home-brand or generic items in supermarkets and chain stores,” he said.

“The new estimates of the cost of children are considerably higher than those produced by updating the original budget standards created in 1995, because prevailing community standards have shifted upwards over the past two decades,” Prof Saunders said.

Dr Cassandra Goldie, the CEO of the Australian Council of Social Service, said billions had been cut from family payments and many parents were under pressure.

“Payments must be indexed to wage growth to ensure they keep pace with community living standards,” she said.

“Newstart must also be increased to help single parents of school-aged children, and who are looking for paid work, cover the cost of living.”

Kylie McIntosh said she and her husband Darren Waugh spent more than $170 a week on raising daughter Jessica. She said the biggest expenses were around $92 a week on food and $113 a week on educational costs.