The average cost of raising children is nearing $300,000, according to Statistics Canada 鈥 and that鈥檚 only up until 17 years old. Post-secondary education is not included, and how many 17 year olds are fully self-supporting?
Having kids is more expensive than ever 鈥 inflation, housing and the cost of living are all in play 鈥 but experts say generational differences in child-rearing norms is likely another factor.
It鈥檚 possible modern childhoods are also just busier and pricier, said Matthew Kempton, portfolio manager at Verecan Capital Management in Halifax.
鈥淚 think the social media effect of being a parent has had a real impact,鈥 he said, noting the typical unstructured childhoods of prior generations.
鈥淚t was OK if we just had an old bike and biked around with our friends and played and spent our time doing nothing. There鈥檚 been a bit of a shift and that shift doesn鈥檛 come free.鈥
Sometimes there鈥檚 pressure to have the best of everything for a child 鈥 but toddlers don鈥檛 know how much their stroller cost, Kempton pointed out.
StatCan figures show that higher earners spend even more on their kids, and these costs can exceed $400,000 to raise a child to 17 years old.
Barbara Knoblach sees it happen. The Edmonton-based financial planner with Money Coaches Canada has a client with a six-year-old in roughly a dozen classes from piano to dance to art classes. Other clients mentioned wanting to raise their children with 鈥渕inimal extras鈥 but once kids came along, she said they started spending more and more.
鈥淧arents often justify these decisions as investments in their children鈥檚 future, or wanting to ensure their child doesn鈥檛 fall behind in comparison to other children,鈥 Knoblach said.
鈥淭here鈥檚 a strong element of peer pressure at play ... Especially among higher-income families, there鈥檚 often a competitive edge when it comes to giving children memorable experiences and enrichment.鈥
Despite the costs, younger people thinking about starting a family shouldn鈥檛 be dissuaded. In StatCan鈥檚 calculations that breakdown the costs of raising a child, almost a third of the total figure is housing 鈥 which Knoblach says may be exaggerated.
鈥淎ssuming the family already owns a home or rents a property of adequate size,鈥 she said, 鈥渢he additional costs incurred for housing may not be all that high.鈥
Most people will also make more money as they progress in their career, said Kate Childerhose, financial adviser with Edward Jones, based in London, Ont.
Although she acknowledges it鈥檚 common to want your children to have things that you didn鈥檛 have, parents should still set boundaries. Childerhose started her own family in her 20s; she and her husband kept costs reasonable by 鈥減utting the hammer down.鈥
鈥淲e said, 鈥極nly one activity, because there鈥檚 three of you. We have to drive you. We have to do all those things,鈥欌 Childerhose said. 鈥淪o we made a choice as a family to set some parameters.鈥
Young couples shouldn鈥檛 assume busy and expensive childhoods are better, Kempton said. Putting financial stress on the family or working extra hours doesn鈥檛 mean happier children. The opposite may be true, he said.
鈥淚 think you very much can still raise kids on a budget,鈥 Kempton said. 鈥淚 think it鈥檚 actually healthy for the children as well. Part of what we do [as advisers] is try to help multiple generations of families 鈥 and you want to raise children who have an understanding of money.
鈥淚n fact, in doing it, you鈥檒l raise children who, when they come out on their own, they鈥檒l be more confident and capable.鈥
The 鈥渄ive in鈥 and 鈥渞oll with it鈥 childhoods are still doable, Childerhose said. Between hand-me-downs and help from loved ones and the community, the lifetime costs are manageable year by year, with good communication and expectations.
鈥淗aving a child is so exciting,鈥 Childerhose said. 鈥淏ut it鈥檚 really important to sit down and have those conversations: What鈥檚 important to us? What are the things that are non-negotiable, and what can we live without?鈥
A stable income, community resources and tax benefits available to parents are a solid foundation, Knoblach said, in addition to having a budget or financial plan that includes child care costs and reduced income during parental leave.聽
Kids can thrive with unstructured time too, she added 鈥 an opportunity to rest, be bored, and explore. Freedom and creativity have value, but don鈥檛 cost much.
鈥淢any families successfully raise children on modest budgets by prioritizing needs over wants, and being intentional with spending,鈥 Knoblach said.聽
鈥淧arenthood doesn鈥檛 require perfection 鈥 it requires commitment, adaptability, and a plan.鈥
This report by The Canadian Press was first published April 29, 2025.
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