Extracurricular activities costing Aussie parents $4.7 billion per year

• Over a third (35%) of Aussie parents are worried or stressed when thinking about the cost of their kids’ extracurricular activities
• 93% of parents have made sacrifices to be able to afford them due to the rising cost of living, including 24% giving up their own hobbies
• Almost nine in ten (88%) parents expect these costs to rise even more this year

New research from ING has found on average, Aussie parents are spending $1,779 per child, on extra-curricular activities like sport, music lessons or tutoring per year – totalling over $4.7 billion nationwide.

While 88% of parents expect extracurricular activities will be more expensive this year than last, almost one in ten parents admit to feeling stressed or anxious when thinking about these costs and are unsure where they’ll find the money to pay for these activities. More than a quarter (27%) say they feel worried about these costs 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% 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%), while almost a quarter (24%) have given up their own hobbies like sports, art/painting and dance.

Before and after school care also costing parents big

The research also uncovered just how much before and after school care (BASC, OOSH etc.) is costing parents, which comes to an average of $166 per week per household.

Over half (55%) of Aussie parents believe these costs will rise even more this school year compared to last, and despite this, more than a quarter (26%) expect to use this service more this year, including 15% who say they need to work more due to the rising cost of living.

Meanwhile, 12% of parents say they will be relying on friends and family to provide before and after school care to ensure costs are manageable.

Matt Bowen, Head of Consumer and Market Insights at ING Australia, comments on the report findings:

“At ING, we get that the rising costs of extracurricular activities are putting a real strain on Aussie parents’ wallets. 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!

“Nine in ten parents actually said they think these costs will go up even more this year, and nearly one in ten are stressing about how they’ll afford it – so there’s no better time than the present to get started on saving.”

Matt’s tips on how to keep these costs under control:

1. 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.
2. Track your extracurricular expenses and set a budget for the months or year ahead to plan wisely and avoid surprises.
3. Stash your funds in an interest-bearing savings account and you could watch your money grow with extra cash on top of your savings.
4. Consider council or community-based programs. They can be more affordable, but you may need to be flexible with their schedules.
5. 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.