What is the True Cost of Having a Baby?

May 13, 2020Life, Savvy0 comments

If predictions are true, in 9-ish months we are going to be looking at a lockdown baby boom. But what is the true cost of having a child? We look at some of the costs that don’t normally get factored in. The figure could be the cold shower you need.


The true cost.

More than two thirds of women give birth in the public system*, and while this is essentially no-cost, not everything you need is covered. For example, scans or pathology tests (if done outside the hospital) and medicines. So while these things may have a Medicare rebate, there are out-of-pocket expenses.


Have you thought about…

There are just some things that are really easy to remember to budget for. All the cute stuff for the baby that generally get parents, grandparents and friends a little ‘goo goo gah gah’. Things like baby blankets, clothing, a cot, pram, change-table. But the stuff that often gets overlooked and not budgeted for are just as important. For example, maternity clothes for mum, physiotherapy, exercise classes, regular ultrasound scans, GP visits, antenatal classes and childcare. These things can easily run into the hundreds (and thousands) of dollars over time.

We also know that once new parents bring a child into the world it’s a key prompt for many people to consider Life Insurance because once you have a child you want to ensure that they are looked after if something was to happen to you – for example death or permanent disability. Given that the cost of protecting you and your family only increases with time, it’s something that’s advantageous to lock-in as soon as possible – it can save you big bucks over the life of a policy.

There are very many things you cannot control in this world like COVID-19 and whether there will be enough toilet paper in the grocery store, but you can ensure that you take out insurance to protect your family from financial burdens should the worse happen. 


Putting a figure on it.

According to the NATSEM Income and Wealth Report from 2013, for a middle-income family in Australia, the cost of raising two kids, from birth to when they leave home is $812,000. If you’re a higher income family, this figure increases to $1.09 million whereas a lower income family can look to spend $474,000. As the cost of living has increased since this report was released, you can expect these figures to be even higher in 2020. Food for thought, right?

While no one can put a cost on how much you love your kids, there is a reality around how much you’re going to need to budget if you want to hear the patter of little feet.


Integrity Life

Integrity Life

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