How Much Does It Cost to Raise a Child?

author-img By Sumona 5 Mins Read 11 September 2023

Raise a Child

It can be really expensive to raise a child in Canada. The cost of pregnancy, giving birth, preschool, housing, education, food, healthcare, and other expenditures quickly adds up, and the total cost can be over $200,000. Generally, raising a child in the country may cost an average of $10,000 – $15,000 per year.

While having a family and kids is a major life goal for thousands of people, prospective expenses can seem too overwhelming for future parenting.

Here is how much it costs to raise a child in Canada and things to take into account.

Maternity Employment Insurance

Employment Insurance

Generally, maternity leave covers up to 15 weeks in Canada. This paid leave may be taken during pregnancy or after the child is born.

Once these maternity benefits end, a parent may take standard parental leave for up to 40 weeks or 69 weeks for extended parental leave.

The position and employment should be saved for this period. If the recruiter doesn’t agree to offer some top-up payments, you may benefit from getting maternity employment insurance. It is meant to replace 55% of the weekly income up to $573 per week.

Canadian Child Benefit

Every eligible child under the age of six can obtain the Canadian Child Benefit as support for the rising costs. This payment is up to $6,639 a year or $553.25 a month.

If a child is between the ages of 6 and 17, the parents can obtain $5,602 a year or $466.83 a month. Who can qualify for this assistance? Low-income families and those who can’t make the ends meet may be eligible for this benefit.

Many families seek no refusal payday loans as they live paycheck to paycheck and can’t always manage their family expenses. While raising a child is very expensive, getting the Canadian Child Benefit may help low-income and middle-income households to remain financially afloat and get additional support from the government.

How Expensive is Raising a Child?

Raising a Child

How much money do you need to raise a kid? Can you afford it? There is no doubt that it’s really expensive and requires a lot of time and effort together with funds.

This is a harsh truth and it’s better to know it beforehand so that parents-to-be have enough time to think it over and prepare for these costs. Planning these expenses ahead of time will give you peace of mind and more confidence.

A rule of thumb tells us that parents should expect to spend about 30% of their monthly income on raising kids. It doesn’t matter how little or how much you are currently earning. Having a kid affects each category of your budget, so spending 20% or 30% is an average.

Besides, people don’t often take into account the hidden expenses that can be rather high. They only consider specific costs such as housing, food, or education. The results may be higher than you’ve expected.

Average Expenses Per Year

Average Expenses Per Year


  1. Childcare – $15,000 to $25,000 annually
  2. RESP contributions – $2,500 annually
  3. Clothing – $500 to $1,000 annually
  4. Food – $1,000 – $2,000 annually
  5. Extra-Сurricular Сosts – Variable

1. Childcare – $15,000 to $25,000 annually

Before the kid starts school, childcare can be one of the biggest costs to your household. Of course, this sum depends on some factors including your monthly daycare, the area you live in, etc.

In some cities, daycare services cost about $500 while in other places you will have to pay about $2,000 a month. If you want to get back to the workforce and keep on working full-time, hiring a private nanny may cost you $1,800 to $3,000 a month.

Some parents consider that having one of them stay home can help to save personal funds. Instead, this option doesn’t work at all. In reality, if a mom stays at home, the childcare expenses are offloaded 100% onto the second parent.

So, you won’t save any cash but make another parent work harder to support the needs of the whole family. Besides, if a parent doesn’t return to work after the paid leave, he or she risks damaging or losing their career.

2. RESP contributions – $2,500 annually

Do you plan to set aside some cash for your child’s post-secondary education? This is a common concern of many parents these days but you can afford it. You should try a Registered Education Savings Plan (RESP) as it’s a great way to save for this goal.

In order to increase the Canada Education Savings Grant (CESG), you should save at least $2,500 annually. This money will later be used to cover the costs of postsecondary education for your kid.

3. Clothing – $500 to $1,000 annually

The main issue here is that children grow very fast but the clothing is rather affordable in Canada. Many parents prefer to buy secondhand clothes while their kids are still at a young age.

It’s certainly much cheaper than buying all the new clothing for a month or two. As kids grow up quickly, you may want to limit the number of clothes you purchase instead of seeking the lowest price.

4. Food – $1,000 – $2,000 annually

Breastfeeding a baby can save you a lot of cash in the long run while choosing to feed your child with formula can be really expensive.

You need to be ready to spend about $300 a month on the formula for the first months until you start adding more food.

Try to share the food you eat so that you buy the same groceries and can easily share your portion of the meal while the kid is small and doesn’t eat a full portion like an adult.

5. Extra-Сurricular Сosts – Variable

Extra-curricular activities and sports can add up to your monthly expenses. Every parent chooses if they can afford any of these activities and how much to spend on them. Typically, you may spend $300 for 3-month dance classes or pay $65 for 10 swimming lessons.

You want your child to pick up skills that can help in their future lives. Many experts recommend that dance classes can be a great way to boost mental and physical development in children. You need to look at affordable options that can allow you to continue with the classes without you facing any financial difficulties.

In Conclusion

You may feel overwhelmed the first time you think about expenses connected with raising a child. However, it’s relatively affordable if you get ready. Besides, you can have a very low tax rate when you claim your child as a dependent. Having a child is totally worth the cost and offers non-financial benefits to the family.


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Sumona is a persona, having a colossal interest in writing blogs and other jones of calligraphies. In terms of her professional commitments, she carries out sharing sentient blogs by maintaining top-to-toe SEO aspects. Follow more of her contributions at SmartBusinessDaily

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