HOW MUCH DOES IT COST TO RAISE A CHILD IN AUSTRALIA IN 2026?

The cost of raising a child continues to climb

Australian parents are spending an average of $8,472 a year on each child, while many are feeling the financial impact of parental leave and rising pregnancy costs, according to new research.

The cost of raising a child in Australia has climbed as families navigate rising food bills, childcare expenses and growing financial pressures long before their children even start school.

New research from Finder's Parenting Report 2026 found food and childcare account for the biggest share of household spending, while more parents are paying out of pocket for pregnancy care and juggling paid and unpaid parental leave.

The report, based on a survey of 1,008 Australian parents with children under 13, offers a snapshot of how families are approaching parenting in 2026 and the financial realities that come with it.

The cost of raising a child continues to climb

Food is the largest expense, costing families an average of $3,305 per child per year. Childcare costs $1,754 annually, with additional spending on clothing, sports, health, school excursions, and tutoring.

The findings highlight the increasing pressure on family budgets at a time when many households are already grappling with higher living costs.

While some Australians are building significant savings before becoming parents, others are entering parenthood with little or no financial buffer.

Almost one in 10 parents surveyed said they had no money saved before having their first child, a figure that has remained largely unchanged since Finder's 2021 report.

At the other end of the spectrum, almost 29 per cent said they had at least $25,000 in savings before starting a family.

More parents are choosing private maternity care

Australia's public healthcare system remains the most common choice for childbirth, but private care is becoming increasingly popular.

The report found 64 per cent of parents gave birth through the public system, down from 69 per cent five years ago.

Meanwhile, 36 per cent used private maternity care, up from 28 per cent in 2021.

The cost of pregnancy also appears to be rising. Just 21 per cent of parents reported paying nothing out of pocket during pregnancy, compared with 36 per cent in Finder's previous study.

Parental leave still comes at a cost

Most parents are combining paid and unpaid leave to spend time with their newborns.

On average, parents took three-and-a-half months of paid leave and a further three months of unpaid leave.

However, more than half said taking parental leave had a measurable impact on either their career progression or financial position.

The finding highlights the ongoing challenge many families face when balancing work, income and caring responsibilities during a child's early years.

Money lessons are starting earlier

One of the strongest trends identified in the report was the growing focus on financial literacy.

Two-thirds of parents said they have already spoken to their children about saving or investing money, while three in four children under 13 receive some form of pocket money.

Sarah Megginson, personal finance expert at Finder and author of How to Raise Rich Kids, said parents are increasingly recognising the importance of teaching children about money from a young age.

"More than two-thirds of Aussie parents are now actively talking to their kids about saving and investing, and that is where we plant the seeds for a financially savvy future," she said.

Megginson said shielding children from money conversations may do more harm than good.

"By involving them in everyday budgeting decisions, we strip away the mystery and set them up with the healthy financial habits they'll need for life."

As household budgets remain under pressure, the report suggests many Australian parents are responding not only by carefully managing costs, but also by trying to ensure the next generation is better equipped to handle money than ever before.