Digital money pit: Costs of raising children soar on tech demands
The demand for technology and communication devices has driven a 10 per cent increase in raising children and it’s likely to get worse, according to Suncorp.
Its Cost of Kids report found that parents could be in for a bill of about $300 a month in tech costs alone if price rises continued on their current path.
Suncorp said that in 2016, technology costs for a child were about $37 a month and had risen to $106 a month. The $300 a month level could be reached by 2026.
The average family also spends about $402 a month on food for a child, an increase of 60 per cent since 2016, and the area of the biggest “overspend” by families.
But on the positive side there had been a big increase in families saving money on their children. Mortgage costs had dropped 24 per cent to $321 a month.
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And Suncorp said if families continued with their Covid-era spending habits they could save up to $10,000 of the cost of raising a child.
Holiday spending had plunged in the past two years because of Covid restrictions as had the cost of out-of-school activities and entertainment.
Suncorp said that the increased spending on technology products meant 40 per cent of people were opting for buy now, pay later methods and a majority were happy to use this method.
