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

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.

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.

Read more Making It:

• It’s probably time you switched banks—4 easy steps for Canadians

• Struggling with student debt? Here’s how to pay off student loans faster
• 6 money lessons I wish I knew in my 20s
• How to manage money as a student

About Sandy Yong

Sandy Yong is a personal finance writer, TEDx and Keynote speaker, and the award-winning author of The Money Master. She’s been featured in hundreds of media outlets including CTV News, Global News, Forbes, The Globe and Mail and The Toronto Star.

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