Preparing for your children's future

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As a parent, ensuring your children have the best opportunities in life is your top priority. There are many factors to consider when planning for the future and providing financial security will give you peace of mind.

Raising a child in Australia is increasingly expensive. It seems that nowadays, everything costs more: from the essentials like healthcare, education, and general living costs (housing, clothing and feeding) to travel, hobbies, and after school activitiesi. While the average household income has steadily increased, so have child-rearing expenses: including childcare and education, the estimated cost of looking after two children until they leave home is a staggering $812,000 for a typical middle-income familyii.

Financial stability and fun are important for a happy childhood.

While your superannuation fund likely includes some level of life insurance cover, research shows that 50 per cent of industry fund members are underinsured by $100,000 for life insurance and 74 per cent are underinsured for Total & Permanent Disablement Insurance (TPD) by the same amountiii. This may not fully cover your family's financial needs in the event of you being unable to provide an income (through fatality, serious illness, or disability).


When they are young and healthy, we don't often think of our children as needing expensive medical care. But studies show that it's important to form healthy habits early in life to reduce the risk of developing lifestyle diseases later oniv.

Children's health, happiness, and development can be helped by a nutritious diet, exercise and playing outdoors, a daily routine with a regular bedtime (to ensure enough sleep), and teaching them safety precautionsv. These foundations for a child's emotional and physical wellbeing can help to minimise future health issues and provide them with added stabilityx.


Education, arguably the most valuable tool you can equip your child with, is also expensive. The estimated cost of putting a child through primary and secondary school in Australia is more than $50,000vi, and then there is higher education or university to consider. And if you choose to send your child to private school, your child's education could cost you considerably more.

Whether you have specific aspirations for your children's future careers or just want them to have the best opportunities available, getting a good education is vital to help them achieve their individual potentialvii.


Owning a home is the great Australian dreamviii but it can also be a lifelong commitment for a family. Once you take on that responsibility, it will be a constant financial obligation for years to come - the average monthly mortgage repayment in Australia in 2011 was $1,800ix - regardless of other demands and obligations that may occur. Safeguarding your financial future can reduce the stress that unexpected events may place on your personal or family income.

The memories you create with your children will last a lifetime.


Family holidays are important bonding and learning experiences, and create precious memories that last a lifetime. Spending time together exploring new places and customs bring families closer together, and helps develop awareness and compassion for other cultures.


Housing, education, and healthcare costs may be your top priorities when it comes to preparing for your children's future; however research shows that more than just physical health contributes to a person's overall wellbeing - strong social networks, job security, and financial security are also major factorsx.

When considering the full spectrum of your children's needs it is easy to see the importance of financial security. For the peace of mind and more information on life insurance, visit Allianz today and get a quote online.

i Australian Scholarships Group, Cost of raising children up 50 per cent,

ii AMP, The Cost of Kids: the cost of raising children in Australia, AMP.NATSEM Report, 2013,

iii Lifewise, See more statistics,

iv Department of Health Victoria Australia, Promoting children's health, Australian Government,

v Department of Health and Ageing, Get Set 4 Life – Habits for Healthy Kids, 2008, Australian Government,

vi Australian Scholarships Group, Metropolitan Australia Schooling costs: Child starting Preschool 2013, 2013,

vii The Hon Kevin Rudd MP Former Minister for Foreign Affairs, Education: The Driving Force of the 21st Century, 2011, Australian Government,

viii AMP, The Great Australian Dream - Just a Dream? AMP.NATSEM Income and Wealth Report, 2011,

ix Australian Bureau of Statistics, 2012, 2011 Census QuickStats: Australia,

x The Earth Institute, First World Happiness Report Launched at the United Nations, 2012, Colombia University,