How rising costs are reshaping family planning, careers, and modern parenting

Thinking about starting a family has long been one of life's biggest milestones. But for many Australians, that dream is becoming increasingly difficult to achieve.

New research from insurance comparison service Choosi, in partnership with MYMAVINS, reveals how rising living costs are changing when Australians start families, how many children they plan to have, and the financial, emotional, and career sacrifices many parents now face.

Based on a nationally representative survey, and building on insights from the Choosi Cost of Kids Report 2023, the Choosi Cost of Kids Report 2026 explores how the true cost of raising children has evolved in modern Australia – extending far beyond nappies, school fees, and groceries to include mental wellbeing, career progression, and long-term financial security.

Key findings

• Nearly 2 in 3 (64%) couples planning to have children have delayed starting a family because of economic pressures.
• More than 7 in 10 (72%) working parents have intentionally put their career on hold after having children, rising to 82% of mothers.
• Half (50%) of mothers say they always feel mentally "on call", compared with fewer than 1 in 5 (18%) fathers.
• 7 in 10 (70%) parents believe raising children in Australia is becoming unaffordable.
• Nearly 4 in 5 (78%) prospective parents say costs influence how many children they plan to have.

Download the full report here

The Great Australian Delay – why more couples are postponing parenthood

With parents estimating they spend an average of $10,000 per year to raise one child, it's no surprise finances remain the number one concern.

For young Australians, the dream of starting a family is colliding with economic reality. While prospective parents believe 29 is the ideal age to start a family, and current parents hope to have an average of 2.7 children, many feel they need savings of $35,739 before taking that step.

However, Westpac savings data tells a different story. Australians aged 25 to 29 have an average savings balance of just $19,165, while the median balance is only $2,200.

This gap between financial expectations and reality helps explain why nearly 2 in 3 (64%) couples planning to have children have delayed starting a family due to recent economic pressures.

These delays are being driven by persistent inflation and rising household costs. Although overall household spending has remained relatively stable under cumulative inflation of 10.4% since 2023, the cost of raising children has continued to climb. Essential expenses such as childcare, groceries, and education are placing increasing pressure on family budgets, leading 7 in 10 (70%) parents to believe raising children in Australia is becoming unaffordable.

To cope, many families are reducing discretionary spending. Parents report cutting back on toys, gifts, technology purchases, sports, and extracurricular activities to prioritise everyday essentials.

Nearly 4 in 5 (78%) prospective parents also say financial pressures now influence how many children they plan to have, suggesting Australia's cost-of-living challenges are reshaping future family size.

According to Phil Slade, Behavioural Economist and founder of Switch4Schools, this "Great Australian Delay" represents far more than individual financial decisions.

"The numbers in this report point to something worth taking seriously at a national level. When two-thirds of aspiring parents are delaying because they feel they cannot afford to begin, and the fertility rate hits a record low of 1.48, we are not just looking at personal decisions. We are looking at a structural shift in the workforce, in care systems, and in what the Australian family looks like a generation from now."

"As a psychologist, what concerns me most is that we are designing a society that makes the emotional and financial cost of raising children feel increasingly prohibitive, and then wondering why fewer people are doing it."

"The fix is not just financial. It requires rethinking how we support parents at work, how we distribute the mental load, and how we invest in the emotional resilience that helps families actually thrive under pressure."

How much does it cost to raise a child in Australia?

While many parents estimate they spend around $10,000 each year raising one child, the findings suggest the true cost extends well beyond direct expenses.

The financial impact reaches into housing, career decisions, childcare, education, and long-term financial planning, making the real cost of raising children much harder to quantify than a single annual figure.

The hidden cost of raising children – mental load and identity

Beyond the financial costs lies another challenge – the invisible mental load carried by many parents.

The report paints a picture of the ongoing responsibility of anticipating needs, managing schedules, and carrying much of the emotional responsibility for family life.

Half (50%) of mothers say they always feel mentally "on call", compared with fewer than 1 in 5 (18%) fathers.

This invisible workload has significant consequences. More than half (52%) of mothers say their mental wellbeing has declined since becoming a parent, compared with around one-third (32%) of fathers.

Parenthood also reshapes identity, with 2 in 3 (67%) parents agreeing it has fundamentally changed who they are.

The parenthood penalty – careers, flexibility, and financial sacrifice

Having children continues to be one of the biggest career disruptions many Australians experience.

More than 7 in 10 (72%) working parents say they have deliberately put their career on hold after having children – up from 65% in 2023.

The impact falls disproportionately on women. More than 4 in 5 (82%) working mothers say they have deprioritised their career, compared with just over 3 in 5 (61%) fathers.

This extends beyond long-term career progression. More than 3 in 4 (76%) mothers have reduced their hours or sought flexible working arrangements, compared with just under half (49%) of fathers.

Why modern parenting feels harder than ever

Many Australians believe parenting today demands more than previous generations ever experienced.

Nearly 3 in 5 (57%) believe parenting expectations have increased, while over 7 in 10 (71%) agree raising children now requires more time, energy, and resources than ever before.

Parents also report feeling judged. More than 3 in 4 (75%) parents with children under 19 have experienced judgement about their parenting choices at least sometimes.

This pressure is particularly pronounced among women, with close to 2 in 5 (38%) saying they often or always feel judged, compared with around one-fifth (19%) of fathers.

Preparing financially for parenthood

While conversations about the true cost of raising children can feel overwhelming, understanding these realities is one of the best ways to prepare for family life.

The report highlights that successful planning extends beyond budgeting. Open conversations between partners about finances, career expectations, childcare responsibilities, and the mental load can help families navigate parenthood with greater confidence.

Ultimately, preparing for parenthood isn't about striving for perfection. It's about building a strong financial foundation, sharing responsibilities, and making informed decisions that work for your family's unique circumstances.

If you're planning for your family's future, comparing life insurance options can also help you understand the types of financial protection available for the people who matter most.

Methodology

Findings in this article are drawn from the Choosi Cost of Kids Report 2026, based on a nationally representative survey exploring Australians' attitudes towards family planning, the cost of raising children, career impacts, financial wellbeing, and modern parenting.

The research was conducted online using demographic stratification to ensure results reflected Australia's population by age, gender, and location.