- Raising children is easier for rich
- By David Wilson
- The Age
- 21/04/2007 Make a Comment
- Contributed by: admin ( 59 articles in 2007 )
One of the harsh realities in finding a balance between work and private life for people under 40 is deciding whether to have children. It's as simple, and as far-reaching, as that.
Children mean your time, emotions and your money - all vital ingredients in the work-life mix.
But having children becomes easier, time and money-wise, the more affluent people are. Wives or husbands can stay at home, nannies and child care are far less of a problem, and education, health, recreation and food costs are far more bearable if a couple can earn a combined $200,000 a year, rather than $100,000.
But most people don't earn that sort of money, so how do they fare financially bringing up kids, and what sort of an effect does it have on their work-life balance?
Five years ago, AMP and the National Centre for Social and Economic Modelling (NATSEM) estimated it would cost an average family about $450,000 to raise two children to the age of 20.
Let's upgrade that to $500,000 in today's money, and take the two children to age 21.
Now let's look at the average wage, which in September last year came to $43,451. So if both parents are working and getting the average wage they would be earning about $87,000 and clearing about $67,000 a year.
Nearly $20,000 a year of that would be spent on food, transport, recreation and entertainment for themselves and the children.
In all likelihood the parents will have the average mortgage of $230,000. And almost certainly they will have a car(s).
NATSEM director Ann Harding says the Federal Government's baby bonus, tax relief and child-care subsidies have been a "great deal of help for all families with children".
But, as a leading work-life researcher Michael Bittman says, supporting children is obviously more difficult for people on average or minimum wages.
"It's a lot easier if you can cover for yourself by being able to afford nannies, take time out and the like," Professor Bittman says.
So next time you hear Treasurer Peter Costello's mantra of having one child for mum, one for dad and one for the country, maybe you should do some sums before joining in.
Children mean your time, emotions and your money - all vital ingredients in the work-life mix.
But having children becomes easier, time and money-wise, the more affluent people are. Wives or husbands can stay at home, nannies and child care are far less of a problem, and education, health, recreation and food costs are far more bearable if a couple can earn a combined $200,000 a year, rather than $100,000.
But most people don't earn that sort of money, so how do they fare financially bringing up kids, and what sort of an effect does it have on their work-life balance?
Five years ago, AMP and the National Centre for Social and Economic Modelling (NATSEM) estimated it would cost an average family about $450,000 to raise two children to the age of 20.
Let's upgrade that to $500,000 in today's money, and take the two children to age 21.
Now let's look at the average wage, which in September last year came to $43,451. So if both parents are working and getting the average wage they would be earning about $87,000 and clearing about $67,000 a year.
Nearly $20,000 a year of that would be spent on food, transport, recreation and entertainment for themselves and the children.
In all likelihood the parents will have the average mortgage of $230,000. And almost certainly they will have a car(s).
NATSEM director Ann Harding says the Federal Government's baby bonus, tax relief and child-care subsidies have been a "great deal of help for all families with children".
But, as a leading work-life researcher Michael Bittman says, supporting children is obviously more difficult for people on average or minimum wages.
"It's a lot easier if you can cover for yourself by being able to afford nannies, take time out and the like," Professor Bittman says.
So next time you hear Treasurer Peter Costello's mantra of having one child for mum, one for dad and one for the country, maybe you should do some sums before joining in.
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