Babies break the bank: the cost of raising a child in Qld

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While a baby’s smile might be priceless, a new survey from RACQ Bank has revealed Queensland parents forked out thousands for their new bundles of joy in the first year alone.
baby, baby in cot
RACQ spokesperson Lucinda Ross said new research by the Club found 44 percent of parents surveyed were spending more than $5,000 on essentials in the first year of their child's life, with almost 10 percent spending more than $15,000.

“These costs can be difficult to manage, particularly when two out of three families told us they were on a reduced income for up to 12 months during this time,” Ms Ross said.

“Almost 50 percent surveyed told us they used credit cards, buy now pay later options or personal loans to pay for these expenses. Concerningly, of those who had used a credit option, more than half were still paying off an outstanding debt.”

Ms Ross said there were some tricks new and soon-to-be parents could do to ease the financial pressure.

“Anything that impacts your income or living expenses should prompt you to check your budget and a new baby is certainly going to have an impact,” she said.

“The earlier you can start planning for the new costs associated with your baby, and budget for any parental leave you or your partner are taking, the better.

“Take some time to look at your income, your current and future expenses, and list what you expect you’ll need to purchase for bub. See what you can cut back on so you’re not living beyond your means.

“Use your leave entitlements smartly and talk to your employer about your options and what works best for your family. If your budget allows, you might be able to take your leave benefits at half pay to extend the amount of time you have off while still having money coming in.

“Look into what Government benefits are available to you but prepare early and submit on time so that you don’t have any gaps in your income.”

The information in this article has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in the document is general advice and does not take into account any person's particular investment objectives, financial situation or needs. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives, financial situations and needs.

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