Yahoo Finance Financial burden faced by Aussie parents
It’s not just the cost to raise a child that has Aussie parents suffering, it’s also their ability to save.
While it’s hard to put a price on the miracle of bringing new life into the world, there is an obvious financial difference between Aussies with kids and those without, according to new data.
Finder’s Cost of Living report found that Aussies with kids had, on average, $28,000 stashed away in the bank, while those without kids had a more hefty $35,000 to their name.
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“Parents who reported the volume of their savings in Finder’s Consumer Sentiment Tracker tend to have less money in the bank than non-parents. This is most likely due to extra expenses associated with raising children, as well as time out of the workforce to care for them,” the report said.
"Our research found 87 per cent of parents have had to reduce their spending on at least one expense due to the increased cost of living. This is compared to 74 per cent of consumers without children.”
What can be done to ease the burden?
An overwhelmingly popular option is for child care to be made cheaper, or even free. Prime Minister Anthony Albanese proposed a childcare subsidy of 90 per cent for all parents, no matter what their household income.
This is an option that appears to be agreed upon by the majority of Aussies and could help to reduce costs and allow more parents to return to the workforce.
Finder data found that an extension of free child care was supported by 70 per cent of Australians. Almost 80 per cent of Millennials believe this would significantly reduce financial stress for families with young children.
Finder’s RBA Cash Rate Survey also showed overwhelming support among economists for an extension of free child care.
All but one (96 per cent) of experts believe extending free child care would significantly reduce financial stress on families.
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