Financial hardship is a well-established determinant of mental health. From 2021 to 2025, Australian families faced sustained increases in cost-of-living, yet little evidence exists on how these pressures are perceived to affect families’ mental health. This study draws on data from the November-December 2024 wave of the nationally representative Royal Children’s Hospital (RCH) National Child Health Poll, which has tracked the financial and mental health experiences of Australian families with children aged 0-17 years since 2020.
Using weighted proportions, we described (1) caregivers’ perceived impact of cost-of-living on their own and their children’s mental health with responses on a five-point scale ('large positive' to 'large negative'). We described (2) variation in these perceived impacts by demographics (gender, child age, sole caregiver status, caregiver education, home language, regionality, neighbourhood socioeconomic status), financial hardship (material deprivation and low-income), and caregiver and child mental health.
Responses were received from 1,991 caregivers for themselves and 3,274 children. Most caregivers reported that cost-of-living pressures negatively affected their own mental health, with 41% reporting a small negative impact and 24% a large negative impact. More women reported negative impacts than men. For children, 65% of caregivers reported no impact, although negative effects were more common among adolescents than younger children. Notably, 11% of caregivers and 14% of children were reported to experience positive mental health impacts of cost-of-living. A bimodal pattern was evident: both large negative and positive impacts were more common caregivers experiencing low income, material deprivation, lower education, sole caregiving, or poor mental health. Conversely, caregivers in two-caregiver households, with higher education or income, or without deprivation, more commonly reported small negative effects.
This is the first national survey to measure perceived cost-of-living impacts on caregiver and child mental health. The study demonstrated clear social patterning, and provides timely, policy-relevant evidence for early childhood, family, and mental health systems. The findings underscore the need for universal responses that are proportionate to need, alongside integrated approaches that address the complex adversities and challenges families face, as financial pressures persist.
Keywords: Australia, caregivers, children, cost-of-living, family wellbeing, mental health, poverty, social determinants.
