Parents who have been busy buying uniforms, shoes and books to get ready for another school year will realise the cost of raising and educating children can be challenging. With the recently announced changes to Family Tax Benefits from 1 July this year, it is important to plan ahead when it comes to the family budget.
“If you’re a couple and your youngest child is 13 years or older you’ll no longer be paid Family Tax Benefit Part B. Nothing will change for single parents, grandparents and great grandparents who care for a child 13 to 18 years of age. They’ll continue to be eligible for Family Tax Benefit Part B.
“This change will see thousands of households up to $4,300 worse off each year.” Mr Smith said.
The latest report from AMP and NATSEM* estimated that the cost of raising two children from birth to the age of 21 years costs the average family over $800,000 or around $450 a week per child. This is almost double what it was reported to cost back in 2002.
Mal Smith discusses further how to manage the cost of having children.
“If we want our children to have the best possible start in life we need to feed them, care for them and give them every available opportunity.
Implementing these three concepts will help ensure you get your children from nought to 21 without facing a financial fall out.” Mr Smith says.
*AMP.NATSEM Income and Wealth Report: The cost of raising children in Australia May 2013. http://www.natsem.canberra.edu.au/storage/AMP_NATSEM_33.pdf Principal Wealth Management Pty Ltd trading as BMO Financial Solutions ABN 53 109 336 601 is a Corporate Authorised Representative of McPherson & Associates Pty Ltd Australian Financial Services Licence (AFSL) 229883. Before making any financial or investment decisions, we recommend you consult a financial planner to take into account your particular investment objectives, financial situation and individual needs. McPherson & Associates Pty Ltd and its Authorised Representatives do not accept any liability for any errors or omissions of information supplied in article.