The Cost of Child Rearing Today

January 19, 2010 |

Many parents who still have small children know very well how costly it is to raise a child today. This does not only apply in certain countries but all over the world. The cost of living in the present time is indeed a far cry from the olden days as many baby boomers will agree. But people can no longer turn back time so we all just have to move on.

In Australia, new research shows that raising one or more child today until the age of 18 can cost parents $1 million. This is mainly due to the use of expensive toys, technology and lessons. Latest data also confirmed that most Aussies claim to be spending more than $100 on toys alone for every child each year. Some of them can even spend as much as $500.

To be more specific about this new finding which covered some 4,500 Australians, social researcher Mark McCrindle said the actual cost of raising kids in Australia is now pegged at $1,028,093. This refutes the government’s earlier estimate of just more than $384,000.

Additionally, McCrindle found that as parents are earning more these days, they are also spending more for every child unlike what they experienced with their own parents. Those born since 1995 also known as the Generation Z are considered to be the most well provided children having almost everything brand new.

These parents can’t be blamed if they want to give the best for their children. It’s a natural instinct but this attitude of spending much for the children should only be carried on if parents are earning more than enough. Some are guilty of not being conscious of their budget for their children’s needs that they end up in financial trouble.

Based on the observation of McCrindle, children nowadays are now more engaged in structured activities more than free play. He added that the more modern parents consider toys to be valuable than the learning tools.

But again, spending so much on toys is not a practical thing to do for parents in the middle-income and low-income bracket. Mum and dad also need to keep track of their expenses so they don’t go beyond their budget.

Parents are just fortunate today that even when faced with financial troubles, they have several resources to turn to. When they’re in dire need of money, they can approach banks and lending companies. They don’t even have to travel to the office just to apply and claim their loans because they can conveniently do so over the internet. With advancements in the internet technology, taking out a loan today is fast and easy.

However, parents have to be responsible for what they do with their finances. Just because they have the money doesn’t mean they have to spend on everything they want. It is ideal to spend within your means and not be impulsive all the time. It’s 2010 now and it’s about time to make that positive change. Newly married couples still without children should learn from this lesson in order to start their life on the right foot.

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The Cost of Child Rearing Today

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