How Much Does it Cost to Raise a Child?
The cost of raising a child can be significant. When you add up the cost of preschool, healthcare, housing, food, education, and other expenses, the total is estimated to be around $293,000, according to Statistics Canada. That’s an average of over $17,000 per year.
Breaking down the cost of raising children
The rapid increase in the cost of living means that raising children is more expensive than ever. In 2015, the cost was estimated to be around $250,000, which means it’s increased by 15% over the last decade. These costs can vary according to factors like parents’ income and family size, but there are certain expenses that commonly make up a large part of the total.
Housing costs
Quality housing is vital to a child’s well-being, but the price of housing — especially urban housing — has dramatically increased, with home prices rising faster than wages for the last 30 years, and that growth trajectory is expected to continue.
- Canada’s house price to income ratio is the second-highest in the world.
- Over the last 20 years, average earnings have increased by 74%, but home prices have increased by 227%
- Average rent for a three-bedroom apartment increased by 7% year-on-year in July 2024
This means that before parents even have to contend with the costs associated with raising their children, they face significantly higher costs to secure their housing.
Healthcare costs
For Canadian citizens, the costs associated with pregnancy and childbirth are covered by provincial health insurance plans. While there may be some costs for private services, the core medical care is generally covered.
Canada’s public healthcare system also covers routine costs after a child is born, including paediatrician appointments and vaccinations. The Canada Health Act also ensures that patients do not have to pay for any drugs administered in hospital.
Although public services like these are free at the point of use, Canadians do pay “a substantial amount of money” for health care through taxes, according to a study by the Fraser Institute. Based on average incomes and tax bills, the study shows that a family of four – two parents and two children – will pay an average of $17,713 per year for their healthcare insurance. For single parent families, the bill is much lower: $4,908 for a single parent with two children.
Education costs for children
Obviously, private schools in Canada are far more expensive than public schools. Even though public schools don’t charge tuition, that doesn’t mean public education won’t put a dent in your finances—your expenses may include supplies, uniforms, exam fees, field trips, therapists, tutors and special education services, and more.
- Private school tuition in Canada can cost anywhere from $10,000 to $50,000 per year.
- Parents spend an average of around $700 per year per child on clothing, electronics, and school supplies.
- The average Canadian citizen studying in Canada pays on average $6,500 at undergraduate level.
Miscellaneous expenses for children
Miscellaneous expenses include clothing, transportation, personal care products, electronics, preschool, daycare, after-school and summer childcare, summer camps, extracurricular activities, and more. These expenses often increase as the child gets older.
Statistics Canada’s report shows that transportation can be one of the biggest costs for Canadian families, especially for two-parent families. It also shows that transportation costs have increased by 31.3% since July 2017.
- Food costs account for around 17% of the total cost of raising a child, rising to 18-20% for single-parent families
- Although the costs of childcare are decreasing due to an increase in government funding, the average amount parents paid for full-time childcare was $544 per month.
Offset the cost of raising a child with crowdfunding
Crowdfunding makes it easier than ever for families to reach out for help. People rely on GoFundMe’s free crowdfunding platform to raise funds for kids and families every day. Your family’s fundraising page becomes a space where friends and family provide both financial and emotional support. If you haven’t already, start your fundraiser on GoFundMe today.