When they say it takes a village to raise a child, they're not wrong. Between the dance lessons, sports equipment, tuition fees, medical expenses and more, it can often seem like it takes an entire village's worth of funds to care for your children, as well.
Many parents work as hard as they can to provide their children with the best opportunities in life. Whether it's that extra tutoring after school, one on one sports training or supporting them through an unpaid internship, parents often willingly dig deep into their wallets to help their children achieve their goals.
The reward for many parents is seeing the results from all that toil and struggle. Watching your child graduate from university or be accepted into their dream job can make it all seem worth it - but what can you do when the unexpected happens?
Families dealing with the loss of a loved one have both emotional and financial implications to deal with, and often these can have an impact on those traditional milestones in your child's life.
No one wants to think about not being there for the family throughout the years, but if you aren't able to help provide for them, how would the loved ones you leave behind cope? The stress of keeping up with daily expenses and raising children can take a heavy financial toll on your partner.
Prudent financial planning ahead of time can help your family after you are no longer there, and ensure your children can still reach those important milestones in their transition to adulthood.
The costs of raising children
Everyone knows that raising children takes a big financial commitment, but have you ever wondered just how much of your finances are involved?
An AMP.NATSEM Income and Wealth Report from the University of Canberra took an in-depth look into the expenses involved in raising children in Australia, and the results may come as a surprise. The research team found that as of December 2012, the cost of raising two children from birth until they leave home has increased to $812,000 for the typical family on a middle income level. For lower income families, the cost is $474,000 and for higher income families it sits at $1,097,000. While average household income has grown by 25 per cent since the last time the report was compiled in 2007, costs such as child care and education and general expenses have all risen substantially.
Providing for your family
Life insurance can help to ease the financial burden on your family after you have passed, providing a set benefit to your nominated beneficiary that can be used where it is most needed.
There are some important things to consider when you do a life insurance comparison. The National Association of Insurance Commissioners states that consumers should find the coverage that suits their own needs before committing to a policy.
They recommend keeping in mind how much you think you need, for how long, and what you can afford to pay, as these factors will affect how suitable the policy is for you.
To look at different policies and determine how much they will cost, you may wish to compare different life insurance products with Choosi.
This information is general in nature and does not take account of your financial situation.
These articles are provided as reference material to allow more informed decision making, but are not intended as being a complete source of information on any topic. All readers should make their own independent analysis on the topic to make sure they have considered the aspects that are important to them.