Buying a home is often considered the biggest financial decision in a Canadian’s life, but raising children comes close behind. While most parents say having kids brings joy and fulfillment, a growing number admit that parenthood places significant strain on their finances. According to the latest Bank of Montreal (BMO) Real Financial Progress Index, the costs associated with raising children are leaving many families worried about their long-term financial security.
Parents Struggling With Costs
The BMO survey found that 53% of parents believe children have jeopardized their financial stability. Among younger generations, the hesitation is even stronger: seven in 10 Gen Zers and 69% of millennials fear that starting a family will negatively impact their financial future. Parents report that everyday expenses—groceries, daycare, housing, toys, and activities—have become unmanageable, with 84% describing the overall cost of raising children as overwhelming.
Impact on Long-Term Savings
Child-related expenses do not just affect day-to-day budgets. Fully 86% of parents said the cost of daycare, school supplies, and after-school programs is preventing them from saving for major long-term goals such as higher education or homeownership. More than three-quarters also admit to feeling social pressure to spend more than they should in order to keep up with other families. These pressures have heightened concerns at a time when the Bank of Canada reports growing pessimism among Canadians about their financial health.
The True Price of Raising a Child
Statistics Canada estimates underline just how expensive parenthood has become. A two-parent household earning more than $135,790 annually spent an average of $403,910 per child from birth to age 17, based on data from 2014–2017. Families earning less than $83,013 annually spent 52% less, or about $238,190 per child. Costs climb further when children remain at home through early adulthood. Given inflation and rising living expenses since 2017, today’s costs are likely even higher.
Parental Expectations of Support
Despite financial pressures, many Canadians believe parental responsibility extends well into adulthood. The BMO survey found that, on average, Canadians think parents should provide some level of support for 19 years. About 22% believe parents should continue financial assistance until children secure a full-time job, while another 22% say children deserve support regardless of their age or stage of life.
Raising children in Canada increasingly means balancing joy with financial strain. Rising expenses, combined with long-term support expectations, leave many families feeling financially stretched. With the cost of rearing a child already in the hundreds of thousands of dollars and climbing, parents must carefully weigh financial planning alongside family goals. The growing concern among younger generations highlights a broader challenge: ensuring financial stability while still embracing the personal fulfillment of parenthood.
