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Money: What Do Parents Worry About?

A national Canstar Blue survey of more than 1,300 parents with young children found that an overwhelming three-quarters of them had a common financial worry in terms of their children’s future: housing affordability. 74% of parent surveyed said that their children’s ability to buy a house in the future was a significant concern.

Surprised? You probably shouldn’t be.

With the median house price in Sydney now topping over $1 million, it’s understandable that in NSW, 82% of parents aged 40 or more listed future housing affordability for their children as a significant concern. This is at a time when home loan interest rates are on the decline.

What will a home loan cost?

That depends how much you borrow and what home loan interest rate you pay – but the sad fact is that even a half a million dollar property can cost almost one million in repayments by the time you pay off that home loan.

For example, the average standard variable home loan rate on the CANSTAR database is currently just 4.64%. That?s so low, right? Well yes, but even a low interest rate over as long period of time adds up to a big cost. Remember – you may well have your home loan for 30 years.

Based on that average home loan rate of 4.52%, a home loan over 30 years could cost you the following:

Loan size Monthly repayment Cost over 30 years

$500,000

$2,524

$908,640

$750,000

$3,751

$1,350,360

$1,000,000

$5,037

$1,813,332

Source: canstar.com.au. Based on rate of 4.52% over 30 years.

It’s absolutely vital that you find the best-value home loan you can, to help minimise that cost! Our Home Loan Calculators can help you do this, particularly our Home Loan Comparison Calculator. 

Home Loan Comparison Calculator

What other financial issues stress parents?

In addition to future housing affordability, other financial issues that parents were concerned about, in relation to their childrens’ future wellbeing, were:

  • 35% Getting into credit card / personal debt
  • 53% Rising cost of health care
  • 38% Increased taxes to pay for aging population
  • 39% Paying off their student debt

Show them what to do

One of the most useful things we can do to help our kids with affordability issues in the future is to show them how to develop good money management skills now.

While there are plenty of financial literacy resources available to help your children learn, the fact is that observation is also a great teacher. Lead your kids by example, with some terrific money-management skills of your own and hopefully, down the track, they will be able to stand on their own two feet. There are some tips on getting started here.
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