Kids cost $1m: Parents to be may want to compare savings accounts

People hoping to have a family in the future may want to compare savings accounts in preparation for the cost, if one report is to be believed.

According to the Herald Sun, it now costs $1 million to raise a child to 18 years old.

This is contrary to the government estimate of $384,543 and is the opinion of social researcher Mark McCrindle.

He said the state figure is wrong because it does not take into consideration the cost of electronics, sports and dance classes and tutoring among other expenses.

In addition, Mr McCrindle said the average child stays at home until the age of 24, meaning the real amount is much higher.

This is something that has been accentuated by the fact that parents today have more money per child than their mothers and fathers did.

He commented: "Generation Z, born since 1995, are the most financially endowed generation of children ever.

"We are not in the era of shared toys or hand-me-downs."

Kids may learn the best way to use savings accounts through a new Commonwealth Bank initiative called onemillionkids, which aims to improve youngsters’ financial literacy.

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