New research has found that, on average, Australian parents are spending $1,779 per child on extra-curricular activities like sports, music lessons or tutoring per year – at a cost that totals more than $4.7 billion nationwide.
The research was conducted by Australian financial institution, ING.
Key points from the findings include:
- More than one-third (35 per cent) of Aussie parents are stressed or worried about the ongoing costs related to their children’s extra-curricular activities
- 93 per cent of parents have made sacrifices to afford their children’s activities due to the rising cost of living, with 24 per cent saying they have given up their own hobbies
- Almost nine in ten (88 per cent) parents expect these costs to climb further in 2025.
Worries about making it work
Almost one in ten parents admitted to worrying about where they will find the money to continue paying for these activities, with more than a quarter of respondents (27 per cent) saying they feel worried about the expenses but will ‘somehow’ make it work.
When ING asked parents about whether they have made sacrifices to be able to afford these activities for their kids, 93 per cent agreed they’ve done so due to the rising cost of living.
Other things these parents have sacrificed to help with the costs include reducing their entertainment subscriptions (i.e. streaming services) (33 per cent), while almost a quarter (24 per cent) have given up their own hobbies, such as dance, sports and art/painting.
Before and after-school care also costing parents big
The research also uncovered just how much before and after-school care is costing parents, which comes to an average of $166 per week per household.
More than half (55 per cent) of Aussie parents believe these costs will rise even more this school year compared to last, and despite this, more than a quarter (26 per cent) expect to use this service more this year, including 15 per cent who say they need to work more due to the rising cost of living.
Meanwhile, 12 per cent of parents say they will be relying on friends and family to provide before and after-school care to ensure costs are manageable.
“At ING, we get that the rising costs of extracurricular activities are putting a real strain on Aussie parents’ wallets,” says Matt Bowen, Head of Consumer and Market Insights at ING Australia.
“Our latest research shows that parents are shelling out an average of $1,779 per year per child, which adds up to a whopping $4.7 billion nationwide annually. No wonder so many parents are feeling the pinch!”
Bowen’s tips on how to help keep these costs under control include:
- Be on the lookout for discounts, as many providers may run discounts throughout the year. A great way to find out about these discounts are through local community groups on social media
- Track your extra-curricular expenses and set a budget for the months ahead to plan wisely and avoid surprises
- Stash your funds in an interest-bearing savings account and you could watch your money grow with extra cash on top of your savings
- Consider council or community-based programs. They can be more affordable, but you may need to be flexible with their schedules
- Share the care. If you have friends and family who also need before and/or after school care, a great way to manage your schedules and reduce costs is to coordinate and share responsibilities.