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.
Technology has added to the cost of raising children
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.
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.
