Millions of Australian kids are heading back to school for the start of a new year. While it's an exciting time, it can also be an expensive one, particularly for many parents who are already battling rising bills and the high cost of living.

Sydney mum-of-two Zoia is preparing to send her two sons, Max and Leon, back to school tomorrow. Zoia told Yahoo Finance she was spending thousands of dollars each year on extra-curricular activities for the 7 and 10-year-olds, including swimming, music and karate lessons, and was now reassessing what was within her and her husband’s budget.

“We have quite a few things and I’m just trying to shuffle it around because of financial costs,” Zoia said.

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The Sydney mum said her two boys attended public school, so the cost of extra-curricular activities was among the biggest expenses they faced, along with their mortgage and everyday bills.

"We made a choice of not choosing private schools partially because we can't afford it, but also, to be more of a part of the community," she said.

"We decided that since they are not doing $40,000 type education, then we can afford to provide them with these extra-curricular things to expand their horizons, prepare them for the future and let them try all sorts of things."

Do you have a cost-of-living story to share? Contact tamika.seeto@yahooinc.com

Zoia said they decided to pause karate lessons for the boys this year as it was costing them $130 per fortnight, or $3,380 per year.

She said it was a “big hit on the bank account” and one of the most expensive activities they were doing year-round.

Instead, the boys will be taking swimming lessons this year, which costs about $90 per fortnight.

They also will take music lessons for drums and piano, which is about $300 per term, and participate in the school band, which is about $170 per term.

Families spending $4.7 billion per year on extra-curricular activities

New research from ING found Aussie parents were spending $4.7 billion per year - or $1,779 per child - on extracurricular activities like sport, music lessons and tutoring.

More than a third (35 per cent) of Aussie parents said the cost was a source of worry or stress for them.

The vast majority of the 1,000 parents surveyed (93 per cent) said they had made sacrifices in other areas to afford activities for their kids. This included cutting back on discretionary spending, eating out, holidays and travel, socialising and live entertainment.