The cost of living in Australia has become more and more expensive in recent years, thanks to a combination of high inflation rates, high interest rates and stagnant wages. With rising costs, it’s becoming harder for families to keep up and something many people are feeling deeply.
As a mum juggling family life, you undoubtedly would have noticed how the rising cost of living is affecting your family’s budget. Like many others, you would be feeling the pinch from housing costs to everyday expenses like groceries and transport.
We have come up with a list of tips and solutions you can adopt to help ease the strain of continued rising costs.
Why expenses are rising
The big issue (and cause) right now for the high cost of living is inflation. This happens when the prices of goods and services rise over time, meaning your money doesn’t go as far as it used to. Things get more expensive, so we need more money to buy the same things, but the average salary is still that—average.
Many of us anticipated the sharp rise in prices following the global pandemic of 2020. However, five years later, it feels like the economy is still struggling, with little improvement in sight.
Inflation in Australia is caused by a mix of domestic and global factors. Key drivers include:
Supply chain disruptions
The pandemic caused delays and shortages, as employees were not able to work due to various lockdown restrictions, pushing up prices for goods like electronics and food.
High demand
As the economy recovered, demand surged, but supply couldn’t keep up, driving prices higher.
Energy costs
Rising global energy prices, largely due to ongoing unrest, have led to higher utility bills and transportation costs.
Labour shortages
A shortage of workers, as people reconsidered their career choices and countries changed their employment policies, has led to wage increases in key sectors, which businesses pass on as higher prices.
Housing costs
High demand combined with low availability has caused property prices and rents to soar, putting significant pressure on families.
Interest rates
The Reserve Bank’s interest rate hikes to curb inflation have also increased borrowing costs for many families.
Commodity prices
Fluctuations in global commodity prices, like fuel and agricultural goods, impact everyday prices.
Global factors
Events like the war in Ukraine and inflationary pressures in other countries have further impacted Australia’s prices.
Cost-of-living solutions for groceries and food
The rising cost of food has been a growing concern for families. Between March 2021 and September 2023, the price of a staple shopping basket increased by 15.2 per cent. The average cost of a family’s weekly grocery bill just to keep the fridge stocked is now $300 a week, forcing many mums to get creative to stretch their grocery budgets.
Meal planning and bulk buying
Plan meals ahead to reduce impulse buys and take advantage of bulk discounts on non-perishables.
Shop around
Compare prices at different stores and look for loyalty programs or discounts to save on groceries. If you always shop at Coles or Woolies, consider buying at Aldi as you might save a ton!
Use discounts
Take advantage of sales, supermarket loyalty programs such as Flybuys and Everyday Rewards, and online promo codes to lower your grocery bill.
Buy seasonal produce
Choose fruits and veggies that are in season to save money and enjoy fresher produce.
Reduce food waste
Repurpose leftovers and freeze extra meals to get the most out of what you buy.
Cook at home
Skip the expensive takeaway and cook simple, cost-effective meals at home.
Grow your own
If you have some space and are motivated, start a small vegetable garden to cut down on grocery costs.
Utility costs: The hidden drain on your budget
Utility costs have been climbing steadily, with electricity, gas and water bills rising year on year. These increases were already a source of financial and cost-of-living strain for families, and the trend has continued into the current crisis.
Switch providers
Loyalty doesn’t often yield reward. Compare energy providers for better rates and discounts, and be open to making the switch. Changing energy providers is often as simple as filling in an online form.
Read: Energy saving tips: 7 ways to slash your electricity bill
Use energy wisely
Turn off unused appliances, switch to LED bulbs and use cold water for laundry.
Save water
Fix leaks promptly, install water-efficient shower heads and always run full loads in dishwashers and washing machines to save water and energy. Use shower timers to reduce water usage and lower bills. Consider installing rainwater tanks to collect water for gardening or, with proper filtration, for drinking.
Optimise appliances
Choose energy-efficient appliances.
Solar options
Explore government rebates for solar panels or community solar programs.
Check rebates
Look into concessions or discounts from the government or your local council for eligible households.
Monitor usage
Track energy bills to identify spikes and address inefficiencies.
Travel costs
If you’re the family taxi driver a mum who drives the kids to school or for running errands, you’ve likely noticed that the cost of fuel is using a good chunk of money each week. On top of this, the cost of maintaining a car— insurance, registration or general upkeep—has become more expensive as well.
For those who rely on public transport, costs have also climbed steadily over the years. Public transport prices, particularly in capital cities, were already rising before the pandemic, with some families now paying upwards of $200 per month just for train or bus fares. For families in regional areas, the lack of affordable public transport options means they’re forced to rely on personal vehicles, further increasing their travel costs.
Carpool
Share school drop-offs, activities and errands with other families to save on fuel and maintenance, helping to make a dent on your cost of living.
Use public transport
Opt for discounted family or weekly passes where available to lower travel expenses.
Combine trips
Plan routes and errands to reduce unnecessary driving and save on fuel.
Maintain your car
Keep tyres properly inflated and stay on top of maintenance to improve fuel efficiency.
Consider alternatives
Walk or cycle for short trips to cut costs and stay active. Consider buying a secondhand vehicle instead of a new car, or maybe even an e-bike.
Shop around for fuel
Use apps or websites to find the cheapest fuel stations nearby.
Review insurance
Compare car insurance providers to ensure you’re getting the best deal.
Addressing rising schooling costs
Education costs are another big ticket item. These include everything from school fees to uniforms and extracurricular activities. While public schools remain relatively low-cost, private schools charge significant tuition fees, often ranging from $5000 to over $30,000 per year. International students face very high tuition fees, making it increasingly difficult for them and their families to make ends meet.
Budget for additional costs
Plan ahead for uniforms, supplies and extracurricular activities to avoid unexpected expenses.
Shop smart
Buy secondhand uniforms, books and supplies from school swaps or online marketplaces.
Government support
Check eligibility for education-related subsidies, scholarships or tax deductions.
Extracurricular prioritisation
Limit activities to those most meaningful to your child to reduce costs.
Student work opportunities
Encourage older children to take up part-time jobs to help make extra money to cover personal expenses.
Housing costs and accommodation arrangements
Housing costs have been steadily rising for several years, with significant increases even before 2020. For many families, finding affordable housing has become one of the toughest challenges, especially in major cities like Sydney and Melbourne, with Sydney being the most expensive city in Australia.
Property prices and monthly rents have soared in these capitals, beyond what most families can comfortably afford, but they’re not alone. Even in smaller capital cities, accommodation costs are reaching levels that strain family budgets, with monthly rent often hitting over $4000 for even modest apartments. The majority of Australians are spending over one-third of their income on rent and homeowners are spending over half to cover mortgage repayments.
When times get tough, resilient people rise to the challenge, finding creative and resourceful ways to adapt.
Explore government assistance programs
Depending on your circumstances, you may be eligible for government subsidies or housing assistance programs. Research local options, such as rent assistance from Centrelink or first-home buyer grants, that could help reduce costs.
Look for housing subsidies
Along the same lines as the first point, certain states offer housing subsidies specifically designed for families, which can help ease the burden of rising rents.
Negotiate rent
In some cases, it may be possible to negotiate rent with your landlord. If you’re a long-term tenant with a good track record, they may be willing to work with you on reducing your rent or locking in a more affordable price for a longer lease term. If you can get private rental accommodation instead of one managed through a real estate, it may also help to reduce rental fees.
House hacking
House hacking involves renting out part of your property (like a garage or extra room) to generate income. This can help offset housing costs and make living in a more expensive area more manageable.
Downsize or share house
For families who can’t afford to live in larger homes, downsizing or sharing a property with others can help cut down on rent or mortgage payments. Renting out a room or sharing a home with relatives or friends can significantly ease the financial strain.
Consider moving to regional areas
Smaller cities and regional towns often offer more affordable rental options. While they might lack some of the conveniences of larger cities, many families find the trade-off worth it for lower living costs and a slower pace of life. If your work allows you to work in regional areas or work remotely, that’s even better.
Housesitting
If you have a caravan and don’t mind living spontaneously, housesitting could be a great option to reduce the budget. Bear in mind it’s not something to take up lightly, especially if you have kids, as it can be a very unstable lifestyle and will likely involve homeschooling.
Little things add up to ease the cost of living
With the rising cost of living, budgeting and tracking your spending have become essential for managing your finances. While sitting down to calculate your monthly costs might feel tedious, it’s one of the most empowering steps you can take. For many, food is the highest cost, making it a key area to address. By being honest about your spending habits and identifying where you can cut back, even small adjustments can lead to significant savings over time.
It’s easy to underestimate how much you’re spending without realising the actual cost of everyday purchases. Focusing on intentional lifestyle choices and smart food budgeting are some of the most impactful ways to start saving. These changes might seem small at first, but they can quickly add up and make a meaningful difference in your financial health. Once you see where your money is going, you’ll feel more confident about planning for the future and finding ways to stretch your budget further.
Read next: 17 money-saving tips you should be using right now
Money-saving tips to survive the high cost of living
