How much does it cost to have kids in Canada?
- The average cost of raising a child in Canada is around $293,000, but that number can vary by family.
- Expenses change as kids get older, moving from daycare and baby gear toward extracurricular activities and tuition.
- Understanding when these costs typically arise can help you build savings over time.
- Financial readiness isn’t about reaching a savings target; it’s about having a plan that can evolve alongside your family’s needs.
- Tools such as RESPs, TFSAs and government benefits can help make the cost of raising a child more manageable.
It can be challenging to know when you’ll be financially ready to have kids. But readiness isn’t about reaching a specific savings threshold or income level before becoming a parent. It’s about understanding the costs, knowing how to make them more manageable and building a plan that can evolve with your family.
Here’s everything you need to know about the cost of raising a child in Canada and strategies to help you manage expenses throughout the different life stages.
In this article
How much does it actually cost to raise a child in Canada?
The cost of raising a child in Canada from birth to age 17 is roughly $293,000. While that number can feel overwhelming, it represents nearly two decades of expenses, not an up-front bill. It’s best viewed as a planning benchmark, not an amount you need to set aside before starting a family.
Actual costs can vary widely by household, but understanding the major expense categories can help you prioritize savings goals, adjust your budget over time and avoid feeling like you need to have everything figured out before starting a family. According to Statistics Canada, the top household expenses for families fall into five main categories. Here’s how much of the average budget goes into each area:
- Housing: 25–33%
- Transportation: 18–20%
- Food: 18–20%
- Clothing: <10%
- Health care: <10%
How the cost of raising kids changes as they grow
Expenses can change significantly at each stage of your child’s life. Understanding how these costs typically evolve can help you anticipate what’s ahead and create a financial plan that grows with your child.
Early years (birth to age five)
The early years can put the most pressure on cash flow because up-front baby expenses (such as a crib, car seat or stroller) often arrive while parental leave reduces household income. But the largest ongoing expense for parents is childcare, which typically occurs when they return to work. The amount parents pay varies considerably by province or territory and access to a reduced-fee or subsidy program.
In 2025, the average monthly bill for full-time centre-based childcare for children up to age five was $435. Access to provincial subsidies or a regulated space under the federal $10-a-day program may lower your overall childcare expenses. However, non-government programs can cost over $1,000 per month, which can be a significant cost for many families.
This stage can be an ideal time to open a Registered Education Savings Plan (RESP). Even if you’re only able to contribute modest amounts, starting early can provide more time to benefit from compound growth and eligible government grants.
School years (ages six to 12)
During the early school years, costs often shift from childcare to school supplies, clothing, extracurricular activities and family travel. Families may find themselves spending over $1,000 a year on youth sports across all children in the household. Camps, music lessons and other activities can also add to the total.
Although these expenses can add up, this stage often offers more flexibility. As daycare costs decline or disappear, there may be opportunities to redirect some of that money toward education savings, debt repayment or other long-term goals, especially before costs rise again during teen and post-secondary years.
Teen years (ages 13 to 17)
By the teen years, costs can climb as kids start eating more like adults and personal technology often comes into the picture. Specialized extracurricular activities, tutoring and driving-related expenses can also increase costs.
This is also the time to revisit your financial plan for post-secondary education. It can be valuable to check in with your financial advisor, who can help you maximize your RESP investments during this final stretch.
Into adulthood (ages 18 and beyond)
Expenses don’t necessarily stop once your child becomes an adult. Post-secondary education is often the first major expense after age 18. In 2025/2026, the average annual tuition for Canadian undergraduate students was $7,734. However, some specialized programs can cost more than $15,000 a year. This is where your RESP savings come into play. A financial advisor can help you prepare for withdrawals before the tuition bill arrives.
You may also continue to provide financial support after graduation, whether that means helping with housing costs, contributing towards a first home purchase or simply supporting a child who remains at home longer than previous generations. This can be a good opportunity to transition to a Tax-Free Savings Account (TFSA) to save for various family expenses. You may also encourage your child to open a First Home Savings Account (FHSA) to help them build savings for a down payment on their first home.
While these costs can seem significant, they are often easier to manage when they’ve been incorporated into your long-term financial plan years in advance.
Are you financially ready to start a family?
Financial readiness isn’t a pass/fail test; it’s a starting point for planning. Consider whether you have an emergency fund, room in your monthly budget, a plan for parental leave income and a sense of which expenses may land first.
If the numbers feel tight, that could mean building savings gradually, adjusting spending priorities, paying down debt or revisiting how much you’re putting toward longer-term goals. A financial advisor can help you build a plan that works for your family.
Strategies to help manage the cost of raising a child
There are several tools available to help make the cost of raising a child more manageable:
Open an RESP early
You can open an RESP as soon as your child receives a Social Insurance Number (SIN), giving even small contributions more time to grow before you’ll need the money for post-secondary education. Starting early also allows you to take advantage of governments grants, such as the Canada Education Savings Grant (CESG) and Canada Learning Bond (CLB).
The CESG matches 20% of your annual RESP contributions, up to $500 per year and a lifetime limit of $7,200 per beneficiary. Contributing at least $2,500 each year allows you to maximize grant amounts, helping you build education savings while reducing how much you need to save personally. Similarly, the CLB provides up to $2,000 per beneficiary to help families within a certain income threshold start building education savings, with no matching contribution required.
There's no annual limit for RESP contributions, but there’s a lifetime maximum of $50,000 per beneficiary. Any grants or provincial payments you receive don’t count toward the $50,000 lifetime contribution limit, helping to boost your education savings.
Use a TFSA for flexible family savings
A TFSA is another valuable resource to build family savings. Money can be withdrawn tax-free at any time, for any purpose, making it useful for both short-term family expenses and longer-term goals. You start accumulating contribution room once you turn 18, which is carried forward to future years even if you don’t open an account.
Leverage lower-cost exchange traded funds (ETFs)
ETFs typically come with lower fees compared to many other investment products, making them a cost-effective option to grow your family savings. They can also provide diversification and automatic rebalancing, so you can focus more time on your family rather than your investments.
Take advantage of government benefits and tax credits
Government benefits can help offset some family costs. Depending on your situation, you may be eligible for the Canada Child Benefit (CCB), the Child Care Expenses Deduction, the Amount for an Eligible Dependant and other provincial and territorial credits.
Budget for the full picture
A family budget should account for both predictable and unexpected expenses, such as replacing a phone, covering camp fees or purchasing birthday gifts. Building flexibility into your financial plan can help you manage these surprises without disrupting progress toward your longer-term goals.
Work with a financial advisor
A financial advisor can help you evaluate your financial situation, create a tailored saving strategy and adjust your budget as your child moves through different life stages.
The bottom line
Raising a child in Canada can be expensive, but the costs come in stages. Knowing what these costs are and when they’re likely to arrive can help you create a plan and put yourself in a strong position for years ahead. Your plan doesn’t need to be perfect from day one; it just needs to be flexible enough to evolve with your family’s needs.
FAQs
What’s the average cost of raising a child per year?
According to Statistics Canada, the average cost of raising a child is about $17,235 annually, based on the $293,000 estimate from birth to age 17. However, the cost will fluctuate each year depending on your child’s life stage, where you live and other unique factors.
When should you start saving for your child’s education?
You can open an RESP as soon as your child has a SIN. The earlier you start, the more time you have to make contributions, receive any eligible government grants and grow your money.
What’s the typical cost of daycare in Canada?
The national average for full-time, centre-based daycare is $435 per month, according to Statistics Canada. Daycare costs vary widely by province or territory, your child’s age, whether care is full-time or part-time and whether the space is covered by a subsidy or reduced-fee program.
What childcare tax credits are available in Canada?
You may be able to claim eligible childcare costs through the Child Care Expenses Deduction, along with other federal, provincial or territorial credits.
