The National Centre For Economic Modelling, on 11th December, 2007 reported that a typical middle income Australian family spends $537,000 raising 2 children to age 21.

The biggest costs, are food, education and child care.

Costs ranging from $107,000 to feed to children to the age of 21 and their total share of housing costs works out to roughly $73,000.  Note this would paid out  of after tax income.

Education costs have soared over the past 5 years.

Low income families generally spend around $19,200 educating their (average of) 2 children but the average for higher income families with children attending private schools is around $161,000. 

(If you think education is expensive, try ignorance).

Costs increase further after age 21 ..

According to a recent Government report issued by "Families in Australia", we're arguably no longer the land of the fair go - particularly for working families in 2008.

• The wealthiest 20 per cent of working families account for 60 times more of the established wealth than the poorest 20 per cent.

• Despite the Australian Government's recession-breaking bonuses, tax cuts and expanded childcare rebates, the state of many working families remains fiscally perilous.

• Independently wealthy individuals, owning greater than $750,000, account for 61 per cent of Australia's wealth, compared with struggling working families each with just $70,000 or less and who hold a mere 1 per cent of the nation's wealth. All this is despite household income ballooning by more than 33% since 2000.

The report also noted:

• Less affluent women tend to have more children - 2 babies per woman for lower income families against approx. 1.5 babies for every wealthier woman.

• Around 25% of working families earn less than $500 a week, compared with the affluent top 25%, which earn more than $83,200 p.a  -  i.e. $6,933 per month or $1,600 per week.

• Household debt now accounts for 140 per cent of family gross income - up from 80 per cent just seven years ago - a compound annual increase of 8.3%.  At this rate household debt to income doubles every 8.7 years - a frightening prospect guaranteed to keep working families working.

• Single parent families with young children, unemployed and indigenous families are far more likely to be poorer than all other families.

• Compounding the problems for many working families is the rising cost of essentials. Food prices have risen 3.8 per cent and fuel by 8 per cent annually since 1998, both above the 3.1 per cent average CPI.

• The report illustrates how we're paying less for recreation, household contents and services, communication and clothing, but premiums for health services, transport, housing, food, alcohol, education and financial services.

• Levels of iniquitous debt are increasing, with 40,000 mortgagees over 30 days late with their repayments.  This includes 15,000 more than 90 days overdue with consequent risk of escalating defaults.

• The report charts the changing face of families. With fewer children starting later in life, couples are increasingly prone to seek 'resolution' via divorce and more likely to co-habit outside marriage.

• Families' debt averages $79,000, including $2,200 on plastic, i.e. 20% of us are having difficulty paying bills when due, and are compelled to plea for financial handouts from family and friends.