Last week an AustraliaScan study showed the number of households with children is set to drop below the number of single person and couples with no kids households. It’s a major demographic shift.

While a combination of an ageing population and delaying a family until older are major contributors to this change, it seems a significant obstacle to having children is the cost.

We love them dearly, but kids certainly don’t come cheap. We should know… we’ve raised four of our own.

A range of different studies have found the typical Australian family will spend over $500,000 bringing up two kids to the age of 21. On average about 23 percent of the family income goes to raising two children. That’s a big chunk of your budget.

Interestingly, the studies showed the more you earn the more you spend on your kids. High-income families spend double the money on food than low-income families and much, much more on education. A high-income family will fork out an average $161,000 on putting two kids through private schools and university.

Yes it’s expensive. Yes it means adjusting your lifestyle. But having children has always been expensive and always a financial burden.

Frankly, the cost of kids is an easy excuse for delaying the decision to concentrate on career and enjoying the material things in life. Hey there’s nothing wrong with that if that’s your choice. Just don’t use the expense of children as the excuse.

The reality is you can afford to have children if you really want to. Like millions have in the past… you just make it work.

It may mean a beach holiday in Australia rather than going overseas or buying cane furniture instead of leather. Lifestyle decisions definitely change but the important things in life don’t have to.

The key is to start the financial planning before the family planning.

Start with a budget and, like all budgets, it means some deep soul searching. Be open and frank with each other. This is the time to discuss whether that weekly half carton of beer will still fit into the equation, not when baby has arrived and one party may be feeling pushed out or put upon.

Get used to living on one wage before you have a baby, just in case you or your partner decide to take a break from the workforce to raise the child. This will prepare you on how to tackle parenthood on a single wage and at the same time help build a nice little nest egg that can be your contingency fund.

The earlier you start investing the more time you give that money to grow and the better off you will be. Take advantage of the magic of compounding, and earn returns on your returns.

When the baby’s born consider borrowing some major items from friends and relatives that are only used for a short period and watch those second-hand columns in the paper.

If you are struggling to cover child related expenses contact Centrelink to find out if you are eligible for any social security payments.

The single biggest financial help to new parents is the Baby Bonus where new mothers receive fortnightly payments over six months totaling $5437 to help look after a new bub.

Family Tax Benefit A aims to help families with the cost of raising children. Depending on how much you earn, you can get up to $164 a fortnight for each child under 13 years and up to $214 a fortnight for kids between 13 and 15 years. Your benefit falls once your kids hit 16 years.

Family Tax Benefit B is an extra payment for families with just one main income, including single parents and families with one main breadwinner. To qualify the primary income earner must make less than $150,000 a year.

One of the biggest costs of raising children is education, whether your kids are in the state or private system.

We’re talking school shoes, uniforms, textbooks, stationary, a couple of hundred dollars in “voluntary” school fees and much more for the 30 per cent of Australian kids that go to independent schools.

Keep all your receipts. You may be able to take advantage of the government’s 50 per cent Education Tax Refund. It helps parents on lower incomes cover the cost of education expenses like textbooks, computers and home internet connection (school fees are not included). The tax claim can be up to $794 a year for each child in primary school and up to $1588 a year for each child in high school.

If you’re going to struggle to cover back-to-school costs contact your State government and find out about education allowances for low-income families.

Take it from us, the joy from having children far outweighs any financial impost.