One third of Australians will delay their family plans because of the expense

December 17, 2015
Whitney Evans

Media Release 

17th December 2015

 

 

One third of Australians will delay their family plans because of the expense

One in every three Australians have said they will delay their plans to have children because it is so expensive to raise a family, new data has revealed.

According to Mortgage Choice’s inaugural Financial Confidence survey, 34.9% of surveyed respondents said the cost associated with having children is so high that it is has forced them to put their family plans on the back-burner.

Local Mortgage Choice franchise owner/mortgage broker Antony Muir said a growing number of Australians feel as though they can’t afford to have a family.

“Almost 50% of Australians said they would have to rely on their spouse or partner for money if they took parental leave, which would suggest the parental leave they are paid by their employer or the government is not enough.”

Mr Muir said the data was unsurprising given that the cost of living and property prices continue to grow year on year.

“Our data shows more than 85% of Australians have seen their day-to-day expenses rise substantially over the last 12 months, which puts pressure on the hip pocket,” he said.

“Given that the cost of living is rising and there are costs associated with having children, it is little wonder why more than one third of Australians are actively pushing their family plans back.”

Mr Muir said those who were concerned about the cost of raising a family weren’t wrong to do so, as data from the survey found 56.7% of those with children believed they weren’t “financially prepared” for a family.

For those who are thinking of having children but are concerned about the associated costs of doing so, Mortgage Choice provides the following tips.

 

Make financial plans

Preparations for parenthood often involve plenty of unknowns - could you face unexpected medical bills? How much time can you afford to take off work? How will you cope financially? The best way to bring certainty to what can be an uncertain time is by making financial plans. Those considering starting a family should set themselves a manageable budget and stick to it.

 

Trim excess debt

For those thinking about children, paying off debt like personal loans and car loans etc should be made a top priority. At the end of the day, the more debt you pay off, the more cash you will free up – cash that can then be saved for ‘rainy day’ expenses.

 

Build a savings plan

Finally, it is a good idea for anyone considering starting a family to create a regular savings plan that they can stick to. Babies don’t stay little forever and as children grow, so too do the associated costs. By committing to a regular savings plan today, you will have a far better opportunity to give your child a wonderful lifestyle down the track.

 

For more information on funding your family plans and/or your financial advice options, call 07 5504 5569 or visit https://www.mortgagechoice.com.au/antony.muir

 

Table 1: Family Plans

Is the cost of having children enough to encourage you to delay your family plans?

National

NSW

VIC

QLD

SA

WA

Yes

34.9%

38.3%

36.6%

34.8%

32.1%

33.0%

No

65.1%

61.7%

63.4%

65.2%

67.9%

67.0%

 

Table 2: Parental Leave

If you took parental leave, would you need to rely on your partner for money?

National

NSW

VIC

QLD

SA

WA

Yes

47.3%

45.8%

50.0%

46.0%

45.1%

50.5%

No

52.7%

54.2%

50.0%

54.0%

54.9%

49.5%

 

Table 3: Financial situation

Question for those with children: were you financially prepared for your children?

National

NSW

VIC

QLD

SA

WA

Yes

43.3%

47.8%

37.5%

44.6%

43.3%

42.7%

No

56.7%

52.2%

62.5%

55.4%

56.7%

57.3%

 

 

For further information and daily updates:

https://www.mortgagechoice.com.au/antony.muir

https://www.facebook.com/MortgageChoiceBundall

https://plus.google.com/MortgageChoiceBundall

 

Late night appointments available Monday - Thursday

 

*About the survey

Market Research Company Nine Rewards was commissioned by Mortgage Choice to conduct the 2015 Financial Confidence Survey. The online survey was conducted in November 2015 and completed by 1,113 Australians.

 

Important information

This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances.

 

About Mortgage Choice

Mortgage Choice is an ASX listed company that seeks to help Australians with all of their financial needs.

Established in 1992, Mortgage Choice was originally established to help Australians improve their financial situation by offering a choice of home loan providers, coupled with the expert advice of a mortgage professional.

Since that time, the company has grown and developed into a fully fledged financial services provider.

Today, Mortgage Choice helps customers source car loans, personal loans, credit cards, commercial loans, asset finance, deposit bonds, and risk and general insurance.

Further, the company offers Australians access to real, relevant and affordable financial advice through our qualified financial advisers.

Mortgage Choice has no balance sheet or funding risk, and consistently delivers strong profits and attractive yields. It listed on the ASX in 2004 (MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA).

Mortgage Choice holds an Australian Credit Licence: no. 382869 and Mortgage Choice Financial Planning Pty Limited holds an Australian Financial Services Licence: no. 422854. Both licences are issued by ASIC.

Recent recognition: 2014 Australian Broking Awards Best Diversification Program; 2013, 2012, 2011 Australian Broking Awards Major Brokerage of the Year – Franchise; 2013, 2012 Australian Broking Awards Best Ethical/Social Responsibility Program; 2012 Australian Broking Awards Best Training and Education;   No.1 on The Adviser magazine’s 2012, 2011, 2010 and 2009 Top 25 Brokerages list; 2012, 2010, 2009, 2008, 2006 and 2005 MFAA Awards Retail Aggregator/Originator of the Year; 2011, 2010, 2009 and 2008 10 Thousand FEET Top 10 Franchise list; 2010 Forbes Asia-Pacific Best Under A Billion list.

Visit www.mortgagechoice.com.au or call customer service on 13 77 62.

 
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