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Throughout my Padlet wall, you will be able to explore the costs associated with parenthood. With the constant rise in prices, you may wonder "how much does it really cost?". Good thing you made it here as that is exactly what we will dive into!

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What did you learn about your topic that surprised you the most?

Throughout my research, I learnt that the expenses associated with parenthood is much higher than I expected. I knew that it was expensive but I didn't expect it to be upwards of $293, 000.

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Provide a real-life example of how this topic is relevant or interesting for you.

This topic is interesting to me as I grew up with divorced parents and my mom was a single mother for many years. Seeing these costs have made me realize how hard my mom had to work to afford to take care of her kids.

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If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?

I think the most important thing to pass on would be how to budget to have a kid. It is important to be financially stable and setting up and budget to save money is a great start to building a family.

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A Canadian article which focuses on the raw costs of raising a child. Prices have drastically changed over the past few years due to inflation. With the price increase it has become harder for children to move out and therefore has increased costs by almost one-third while having a young adult remain at home.

I chose this website because it explains costs and factors of having children. From this website, I found it useful to read about the rising costs from a child remaining at home in their young adult years. This relates to my family as we are entering the young adult years and still living at home due to the costs of living.

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How much do Canadian families spend raising a child? - Statistics Canada

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How much do Canadian families spend raising a child? About $293,000 from birth to age 17 (an average of $17,235 per year) for a two-parent, middle-income family with two children, according to the first national estimate in over a decade.

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This article discusses the key elements that should be considered before and throughout a child's life. It also discusses how the number of children impacts the amount spent. It states that a family with 2 children spends 20%-38% less per child than a 1 child family and a family with 3 children spends 8%-15% lower than a 2 child family.

I chose this article because the break down of different years of the child's life provides rough cost estimates and could be useful to a family. A piece of information I found useful was the costs and planning before a baby arrives. A good tip the website suggests is to buy used items that are still in good shape, instead of buying everything brand new.

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Before the baby arrives

Are you planning for your baby's arrival? Congratulations! Establishing a family budget can be the perfect way to begin adapting to your future reality as parents. Taking a moment to evaluate your finances is one of many things on the list of things to do in the months leading up to the birth of your first child.

You'll have a lot of new items on your expenses list that you'll need to get before your child is born: crib, bedding, furniture, and décor for the nursery, stroller, car seat, clothing, play pen, highchair, pacifiers, baby carrier, baby monitor, play mat and numerous other things you probably didn't even realize existed until now. Opting to buy used items that are often still in great shape will save you a lot of money.

The first year

According to Statistics Canada, the cost of a baby takes up 20% of the family budget. Diapers alone can be as much as $950 in the first year, plus a few hundred dollars for medications, moisturizers, and accessories, such as a humidifier.

When it comes to financial aid in Quebec, you may be eligible for the Quebec Parental Insurance Plan (QPIP). This allows you to receive a percentage of your salary during your parental leave after the child is born or up to four months before the due date. If you reside elsewhere in Canada, be sure to check the financial aid available to you with your provincial government. This will help you determine disposable income during the first few months of your new family life and adjust your budget accordingly.

You'll also need to make a choice about daycare. In Quebec, unlike the rest of Canada, it's possible to obtain a subsidized space in an early childhood center (CPE) at a fixed cost determined by the provincial government. In 2024, the cost of a subsidized space in a CPE is $8.85 per day. The price of private daycare varies.

You may be eligible for tax credits and government assistance, based on your income. Use this tool to calculate the cost of a childcare space and estimate your expenses.

From one year old to their first days at school

A young child taking their first steps will inevitably start exploring the house. Be prepared to spend at least $600 to secure your home with barriers and other safety tools. Consider also that you will have to purchase a stroller and car seat for your child-these costs can reach several hundred dollars.

A child grows quickly, and clothing, toys, and accessories will have to very rapidly be replaced. Take advantage of classified sites or even consignment shops that specialize in exchanging children's clothing and toys. This will help you avoid paying full price for items that will barely be used.

You should also plan for daily trips to pick up your child at daycare and go to their activities or new friends' homes. Set aside money for fun, too-systematically saving for yearly vacations or a family trip can be very helpful.

The school years

Even though public school is free, education has its own share of expenses. Set aside a budget for school supplies. At the elementary level, estimate between $115 and $175 per year. As for high school, you should expect to spend anywhere between $925 and $2,300 per year. Add to this the cost of childcare, snacks, lunches, field trips, and extracurricular activities, and a budget for sports and technological tools, such as a computer, tablet and apps.

During your child's primary and secondary school years, you will notice that your grocery bill will change with your child's growing appetite. The more active your child's life, the more mileage you'll add to the odometer. Some parents also like to give their children a small allowance.

Finally, set a budget for gifts to buy for birthdays and important life events that you'll want to celebrate.

Here is an estimate of annual costs for a child in school, before the age of majority:

The life of a young adult

Your child will experience many firsts such as their first cell phone, car, trips, nights out with friends, college and university, etc. There are many new expenses involved for the 18-25 age group who, for the most part, have not yet left the family nest.

Some parents take care of a lot of these expenses. Of course, the financial impact for a child living at home and working full time will not be the same as a child studying outside of their hometown and living in an apartment without a job.

If your children still live at home from age 18 to 22, you'll need to budget between $68,000 and $117,000 more per child, compared to the $263,000 initially mentioned for the period from birth to age 17.

Impact of the number of children

Having several children means greater economies of scale. Statistics Canada's study shows that a two-child family spends 20% to 38% less per child than a one-child family. For families with three children, spending is 8% to 15% lower per child than for a two-child family. These savings can be explained by the fact that many clothes and toys can be recycled, and the same accessories and furniture can be used.

The contribution requested for daycare, even if it is based on family income, is reduced by half for the second child and any subsequent children.

In return, some expenses will be split and the impact on the family budget may be even greater if you must change the family car or move.

Tools for your family budget

Many savings products can help you meet your financial responsibilities as a parent. Consider a Registered Education Savings Plan (RESP), a joint account, insurance, and many others. There's also the Registered Disability Savings Plan (RDSP) for families with an eligible child. This program covers many types of disabilities and can be a great help.

Your advisor can determine different strategies with you to ensure your family's financial future. Either way, one of the greatest gifts you can give your child is to teach them the value of a dollar and how to properly manage their finances.

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Cost of Raising a Child: The Key Elements to Consider

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Want to know how much it will cost to raise your child until they leave the family nest? Here are some things to consider.

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What are some cost considerations when raising a child? Some factors include childcare, education and activities. In this article we will focus on education. Millennial's experienced a rise in debt as 35% of students owe at least $16,000 from student loans.

I selected this article because it can encourage families to think sooner about education rather than later. Something I learnt from this article is the importance of investing in an RESP. Investing early allows a growth in the amount of money you contribute to the RESP as the government matches 20% annually. It is stressful to think about paying off your child's student loans while paying off your own loans at the same time.

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What is the Real Cost of Raising a Child in Canada?

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Childcare, activities, and education can all add up quick – so plan for the unexpected!

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There are many factors that contribute to having a child and some factors we may not consider in monthly expenses. This article talks about each factor including housing and transportation. While you raise a family you may consider buying a new house for more space or buying a new car that is bigger, these are costs associated with having children that are often forgotten.

I enjoyed reading this article as it sheds light on two main factors that I haven't seen in my other articles and videos. Housing and transportation aren't always considered as families think of direct costs such as food, clothing, toys, etc. I learnt that there are more costs associated with having children than you think and managing finances is very important.

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Inflation has made daily living more expensive, especially if you have kids. Find out how much it will cost to raise your bundle of joy.

Growing your family is a life-changing decision. As a parent, it impacts your finances, relationships and responsibilities. In 2011, MoneySense published what the editors believed to be "the most comprehensive and accurate estimate of the average cost of raising a Canadian child to age 18 ever published." That was followed by a 2015 update, based on inflation-adjusted figures.

And so much has changed since then. Namely, the ever-increasing costs of putting food on the table, keeping your car running and having a roof over your head. That got me thinking about the total costs of raising a child in 2023. Using MoneySense's original research (which has often been referenced), I've crunched the numbers again to account for nearly a decade of inflation. Here's what you need to know about the real costs of raising a family in Canada. But before we dig into the numbers, let's look at what life is like for parents nowadays.

Can I afford to have kids today?

Knowing the financial responsibilities that come with raising kids is an important aspect of family planning. The increased cost of living that Canadians are facing right now doesn't make child-rearing easier. But with careful planning, it's possible for you and your family to enjoy a comfortable lifestyle.

In Canada, we're seeing people wait longer to have kids, and fewer kids being born. In 2021, the average age of a Canadian mom giving birth was just over 31 years old, and the total fertility rate was 1.43 children per woman. The increased costs of having children, women climbing the corporate ladder and COVID-19 are a few reasons some families have decided to have fewer children or delay having kids.

In addition, one in six couples struggles with infertility, according to the Canadian Fertility and Andrology Society. Infertility treatments such as intrauterine insemination (IUI) and in vitro fertilization (IVF) can cost hundreds to tens of thousands of dollars, and it's not guaranteed that you'll conceive or deliver a healthy baby.

Pursuing parenthood is a big financial commitment. Having a conversation with your partner and reviewing your budget will be helpful in setting expectations and figuring out your finances together.

The costs that come with having children

MoneySense's 2011 study aimed to put a figure to the total cost of raising a child up to the age of 18-an ambitious project that has its caveats. With so many years included in the estimate, you may find the average costs do not reflect your own situation. But the types of expenses that arise are fairly universal, so let's look at those.

What parents spend in the first year

There are basically two types of costs to consider in the first year: upfront and ongoing costs.

Upfront costs: After finding out they're expecting, parents typically invest in supplies and equipment that are needed as soon as the baby arrives. These must-have items include a crib, stroller, car seat, baby carrier, high chair and feeding supplies.

Ongoing costs: You'll have to make regular trips to the store (or have an online subscription) for diapers, diaper cream and wipes, as well as baby formula-if you can't or choose not to breastfeed-and eventually solid baby foods. You'll also need to stock up on clothing, toys and books. Pro tip: Kids outgrow their clothes quickly, so buy used or get hand-me-downs to make your money go further!

Depending on where you live, your household income and your lifestyle, the cost of raising a child in their first year can vary widely.

What parents spend in the early years

A major difference between budgeting for a family in 2011, 2015 and 2023 is child care costs. In the table below, you'll notice the average annual child care cost is $5,230 in 2023. Based on MoneySense's original methodology, this sum is the annual average between when the child is born and the day before they turn 19. In reality, child care costs will be front-loaded in the early years and taper off as they grow older.

Another important note: Thanks to the national $10-a-day child care program, thousands of dollars are being put back into parents' and caregivers' pockets each year. Since the program is rolling out gradually until 2026, we've used the original child care costs from 2011 and adjusted for inflation. But make no mistake, this is one area where many of today's parents can save money.

From as early as six months old to the time your child starts junior kindergarten, you may also want to factor into the cost of enrolling them into a daycare or a Montessori program full-time, which can be useful when one or both parents start working again. Even when kids are in elementary school, parents often register them in after-school child care programs, since classes end mid-afternoon. So, expect to pay this annual expense until your children complete elementary school.

What parents spend as their kids get older (up to age 18)

Compared to the early years, it's hard to predict the costs that will come up as your children get older. They will depend on their interests and needs, as well as your lifestyle as a family. But these are some of the costs that are likely to come up.

Household costs: When you have multiple children, your property may suddenly feel like it's shrinking. Moving into a larger home or rental means incurring additional costs, such as one-time moving expenses, as well as increased property tax, mortgage payments and utility bills. Plus, as your kids grow, you'll want to upgrade to buy more furniture and home decor.

Transportation costs: When travelling around town with a little one in tow, having a reliable car is crucial. A car with adequate trunk space (to fit all the baby equipment) and extra legroom can make all the difference. Later on, a second car can come in handy-especially if you and your partner are commuting to work and need to take turns attending your child's recreational activities and doctor's appointments. Related costs such as car insurance, gas, parking and maintenance will increase as well.

Health care costs: You'll want to add your child to your benefits and insurance plan, if you have one. Be prepared to pay out of pocket for medication, vaccines, dental care and services provided by specialists not covered by the government or your benefits plan.

Food costs: At around six months, your child will start eating solids, which means you'll need to bulk up on groceries. At around 12 months, some kids transition from formula or breast milk to cow's milk. Plus, if your kids have any allergies or food sensitivities, you may have to buy specialty food items. During their teenage years, you'll have to increase your food budget as they'll have bigger appetites for their growing bodies.

Education and recreational costs: Budgeting for the school year means factoring in extra money for school supplies, extra curricular activities, field trips and fundraisers-as well as occasional family vacations once school is out. A bigger decision for parents is choosing between private school and public education.Public schools can save you a lot of money compared to private schools, where parents incur the additional costs of admission fees, tuition, uniforms and much more. The middle-ground solution could be attending public school while signing kids up for recreational programs, private lessons and camps throughout the year. Don't forget, if you plan to contribute to your child's post-secondary education, opening registered retirement savings plan (RESP) early on will maximize the amount of time you have to save for this goal and take advantage of government grants.

How much does it cost to raise children in Canada? The full picture

So, what will having children cost the average Canadian parent? The table below spells it out. As per MoneySense's original methodology, the numbers represent "the average cost per child for middle-class couples with two children across the country." (While having two or more children adds to the total expense, it has been shown to reduce the cost per child.) To find the costs in 2023, I used the 2011 stats and adjusted them for inflation using the Bank of Canada's inflation calculator (based Statistics Canada's Consumer Price Index, from July 2011 to July 2023). To keep things simple, I rounded the numbers.

All said, the average yearly cost of raising kids in 2023 is roughly $16,900. From infancy to age 18, that's more than $320,000. That's a huge expense for people already facing the financial and emotional impacts of inflation. Remember that these are only estimates, and that every child has different needs. Personally, I know parents who are frugal and will find ways to keep their costs down, and I know others who won't hesitate to splurge.

Costs per year in 2011

Costs per year in 2015

Costs per year in 2023

Child care

$3,970

$4,140

$5,230
(not including $10-a-day child care)

Average annual cost of raising a child$12,820$13,370$16,900

Total cost to age 18$243,660$253,950$321,020

Watching your kids grow up-priceless

When you look at the total cost of raising kids to age 18, it's hard not to shed a tear. It's equivalent to the average cost of a home in Moncton, N.B., or a sizable chunk toward your retirement fund. But deciding to have kids should not solely be a financial or logical decision-it's an emotional one as well.

With thoughtful planning and an understanding of your values, you can decide to spend your money on what is most important to you and your family. As your kids grow up and your financial situation changes, you can always reevaluate how you spend your money to align it with your goals. More importantly, no matter how much you spend on your kids, creating special memories with them and watching them learn new skills is irreplaceable.

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How much does it cost to raise a child in Canada? - MoneySense

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Inflation has made daily living more expensive, especially if you have kids. Find out how much it will cost to raise your bundle of joy.

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The video displayed outlines the total amount spent on a child for different income households. It appears that the more income you have, the more money spent on a child. From birth to age 17, low income households spend $238, 190 where as a high income household spends $403, 910. That almost doubles the amount of a low income household.

Some information that I found useful for my research was the fact that, if a child chooses to stay home till the age of 22 then low income households spend more then $300,000 per child. In our minds we think it is saving money for us to stay home for post-secondary studies but in certain cases it can be more expensive to remain at home.

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How much does it cost to raise a child in Canada?

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This video is a parent from the UK discussing how her family has fallen into debt from childcare expenses for her 3 children. She explains that even with how hard she works, she often feels discouraged with the position they are in financially. Many women are unable to return to work due to the cost of childcare or in the event of working they are reaching far into savings and falling into debt.

Despite this video being based on the UK, I still selected it to showcase that it is not only a struggle in Canada but rather in many places around the world. In this video I learnt that women are ending pregnancies because they cannot access the childcare system. This is absolutely gut retching to hear and it is useful to understand the deeper thoughts of those trying to have a family, in order to further understand what these families are going through.

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Childcare costs leave rising number of parents in debt

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This video discusses some factors of costs associated with children, such as sports and food. These facts came from two parents, one has 4 kids and the other has 2. Something inspirational in this video was the fact that even with expenses and rising causes, the dad of 4 was still hopeful and happy to be where God placed him no matter the costs associated.

I chose this video because it is useful to listen to parents discuss their experiences and opinions. A piece of information that was useful for me was how from the age of 14-18 for boys it costs roughly $311 monthly for food where as for girls it only costs $223 monthly. This puts families of girls at an advantage as they save roughly $100/month which adds up to $1200 a year of savings.

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The population has increased from 7% in 2001 to 34% in 2022 for young adults who do not want to have kids. Some common factors from that study include no partner and financial reasons. Part of having no partner ties into not making enough money on their own to afford a kid.

I chose this video because the study on financial reasons was conducted from 2014-2017 and since then all we've seen is an increase in prices. Also the expectation on parents has changed and they experience more pressure from society to enroll children in programs whereas many years ago they didn't have programs so therefore it lessens the cost of providing for kids.

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Why fewer people are planning to have kids | About That

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The image above helps to display the steps in a financial decision-making process. This is helpful to those who are considering parenthood and the associated costs. By following these steps it can help to better prepare for the costs of having children and set you up for success rather than land in debt.

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I selected this image to show an example of additional costs associated with parenthood. This image represents extracurricular activities. There are basic costs to parenting but also enrolling children in mentally stimming activities (Ex. Soccer) can end up being a big cost.