Canberra: (The Conversation) — Australians are having fewer children than ever before, with the fertility rate at a record low of 1.5 babies per woman. Many believe this is due to the rising cost of raising children.

Ben Phillips of the Australian National University explores whether this assumption holds true, analysing what families actually spend and how costs are measured.

Calculating the cost of raising children is complex — influenced by factors like the number of children, age differences, family income, and lifestyle choices. Phillips' study focuses on direct costs using survey-based statistical models that compare the living standards of families with and without children.

Using data from the Housing Income and Labour Dynamics in Australia (HILDA) survey, researchers found that families spend about 13% of their disposable income on the first child and 10% more for each additional one. For a typical working couple earning around USD 130,000 after tax, that translates to roughly USD 17,000 per year for the first child and USD 13,000 for each subsequent child — about USD 300,000 and USD 230,000 respectively to raise each to adulthood.

Lower-income families spend a higher proportion of their income but less in absolute terms. The study also found younger and older children slightly more expensive than middle-aged ones.

Interestingly, the cost of raising children hasn't changed significantly since 2001. The decline in fertility rates may instead be tied to lifestyle preferences, delayed parenthood, or perceptions of high costs rather than actual increases. (The Conversation)