Aussies are deciding to not have kids, or put them off, because of the current cost-of-living crisis.
A Compare the Market survey of 1,005 Aussies found nearly one in five people (16 per cent) wouldn’t have kids or would delay having them due to skyrocketing costs.
More than a quarter of millennials (28 per cent) - who are currently in their late-20s to early-40s - said they wouldn’t have kids or would delay having them. Two in five (42 per cent) of gen Z’s also felt the same way.
Compare the Market general manager of money Stephen Zeller said there were a multitude of reasons why people were deciding not to have kids - like climate change, overpopulation and independence - but money tended to be a dominating factor.
“It seems the RBA’s record run of interest rate rises is sapping the money out of many people’s wallets,” Zeller said.
“Between that and the exploding prices of fuel, energy, gas and groceries – it’s an expensive time to be alive, let alone take care of another person financially.”
In 2018, the government found the weekly costs of raising a child was $140 per week for unemployed families and $170 per week for low-paid families. That amounts to between $7,280 to $8,840 per year.
This includes the costs of food, clothing and footwear, health, personal care, school expenses, housing and transport and would have “undoubtedly increased by now”, Zeller said.
There’s also the costs of having a baby in the first place, including pregnancy and childbirth costs, setting up the baby’s cot, as well as things like nappies and formula.
For Aussies who do decide to have kids, Zeller said it’s important to do some forward thinking. This includes thinking about how you will manage your household expenses, deciding whether you want your child to go to public or private school, and considering what your financial goals and priorities are.