The real cost of raising kids
The updated figures might surprise you
Does it make sense for a young person to have life insurance?
Think you're too young for life insurance? Buying early can help save on premiums.
Having kids changes your life in many ways: sleepless nights, runny noses and a lighter wallet. You will eventually catch up on sleep and the runny nose will run its course, but it may take years before you can get your finances back in order.
Kids aren’t cheap and we have the numbers to prove it. When we last prepared our detailed analysis of the cost of raising kids in 2011 we pegged the figure at $12,824 a year or a whopping $243,656 to raise your kid from cradle to young adult at the age of 18. Adjusted for inflation that figure today would be $13,366 pushing the total cost of raising a child past the quarter million mark—a $10,200 increase in four years.
It’s worth noting that this $13,000 a year is averaged out over the first 18 year’s of the child’s life. Many new parents will tell you they spend well over that amount when their kid goes to daycare. Indeed, childcare is the single biggest component of the overall figure. In the table below you’ll see this cost being listed as $4,000 because the charge is averaged out over 18 years. It’s not unusual for parents to pay $12,000 to $15,000 a year for daycare. Even if one parent stays home, that too is hardly free since it will mean the loss of one income.
Here’s how the cost of raising a kid breaks down when adjusted for inflation:
| Category | Cost |
|---|---|
| Food | $1,799.94 |
| Increased household costs | $2,834.88 |
| Child care costs | $4,141.84 |
| Clothing | $874.44 |
| Increased transportation costs | $2,152.22 |
| Health care | $255.35 |
| Personal care | $260.56 |
| Recreation/school supplies | $1,046.40 |
| AVERAGE ANNUAL COST OF RAISING KIDS | $13,365.63 |
| TOTAL COST TO AGE 18 | $253,946.97 |
Inflation adjustment is based on Statistics Canada Consumer Price Index, from August 2011 to January 2015.
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
Related Articles
Buying ETFs in Canada Tool: The MoneySense ETF Screener
Which ETFs should you invest in? Which ones best suit your risk tolerance? What about personal ethics? Check out...
What type of financial advisor do you need?
If you’re looking for a financial advisor or planner, learning about their credentials can help you choose the right...
Making sense of the markets this week: November 24, 2024
Nvidia doubles revenue in one year, Canadian inflation moves in the wrong direction, Target misses badly, Walmart beats earnings...
MoneySense at the MoneyShow: ETFs & Investing Strategies
Here’s how to get your free ticket to attend the MoneyShow virtual expo.
Mental health resources in Canada: How to get help for free (or cheap)
Learn how to get mental health support in Canada, whether or not you have workplace benefits or insurance coverage.
Estate planning for singles—is a trust company the answer?
Canadians with no children or siblings must consider estate planning alternatives. Here’s why trust companies can be a good...
Making sense of the markets this week: November 17, 2024
The Trump effect and Trumponomics, Shopify’s huge earnings beat, it’s sunny days for Suncor shareholders and more.
How to pay yourself as a power of attorney in Ontario
Should you be paid as a power of attorney? Learn about the compensation rules in Ontario and how to...
Thanks for pulling this together. It would be great to have these updated again. These numbers are 6 years old.