Having children costs Aussie couples $8000 a year

It costs an estimated $160,000 to raise one child over 18 years, with calls for people to prepare for the huge financial responsibility.

One in 10 Aussie couples had their first child with no savings, despite the cost of raising a child estimated to be at least $170 a week, new research has found.

The survey found just over a quarter of parents-to-be had $5000 or less in savings – less than a year’s worth of living expenses for one child, the Finder research revealed.

A 2018 study by the Australian Institute of Family Studies found it costs low-paid families around $170 per week to raise a child.

That’s the equivalent of $8840 per year or $159,120 over 18 years.

However it’s estimated that the average family would end up spending more money than the conservative estimate.

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The cost of over a child over 18 years is $159,120. Picture: iStock

The amount of money parents should have saved up depends on their personal circumstances, according to Finder money expert Alison Banney.

“It’s important to take into consideration the cost of having kids before starting a family,” she said

“How much you should have in savings will depend on your situation. For instance, having a large mortgage means dedicating a chunk of your income towards repayments, and the same goes for credit card debts or other loans.

“Ask yourself whether you could afford to spend an extra $10,000 a year on your child, and whether you would be willing to give up small luxuries like eating out and new clothes to save money.”

But the survey showed Gen X parents had more than double the amount in savings, a whopping $51,206, compared to Gen Z parents with $25,798 before starting a family.

Respondents from NSW had the most amount of money before their firstborn with $57,994 sitting in the bank, followed by those from Victoria that had $46,005 saved and Queensland with $36,919.

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Having an emergency fund is vital when you are a parent. Picture: iStock

Pregnancy and birth itself can leave you thousands of dollars out of pocket, depending on whether you choose private or public care and various complications, added Ms Banney, who recommend building up an emergency savings fund.

“Having a family is a huge financial responsibility, and it increases the likelihood of facing unexpected expenses,” she noted.

“This means it’s essential to build up an emergency savings fund to make sure you can meet sudden expenses like medical bills for your family without feeling stretched.

“Aim to have at least three months’ worth of expenses saved up, accounting for the cost of food, bills and other living expenses for you and your family.

“Not only can this alleviate financial stress in the event of an unexpected expense, but it means you won’t have to rely on credit cards or loans to make ends meet in an emergency.”