The Real Cost of Raising a Child in Canada: Facts

It is natural to be worried about your future expenses when you are about to have a baby. However, it should be no surprise that raising a child in Canada is quite expensive.

The entire cost of pregnancy, delivery, schooling, and other necessary expenditures can easily approach $200,000.When you factor in the expanding economy and increasing living expenses, it isn’t easy to evaluate whether or not this figure is correct. A child increases the annual expenses of a middle-class household by about $10,000 – 15,000.

Note that insurance for children is an effective way of safeguarding their financial future. This article will lay down how expensive it would be to raise a child in Canada and if you can genuinely afford it.

How much does it cost to raise a child in Canada?

Even though money isn’t the only consideration for having a baby, it is crucial to examine if you can meet the expense of raising a child and what short and long-term compromises you’ll be required to make.

1. Maternity cost

You can avail of the EI parental and EI maternity benefits set up by the Canadian government. Maternity leave lasts up to 15 weeks in Canada. You can then take 40 weeks of conventional parental leave or 69 weeks of extended parental leave.

Under the EI Parental benefit, for a leave of up to 40 weeks, you will receive 55% of average weekly insurable earnings as a maternity benefit, with the weekly limit being capped at $638. Those on long leaves (69 weeks) receive only a 33% wage replacement, $343 per week being the highest amount.

Eligibility criteria for EI Parental Benefit

  1. The mother’s normal weekly earning must have been reduced by at least 40%
  2. You must be working in an insurable employment
  3. The mother must have at least 600 hours of insurable employment.
  4. You must have paid the EI premiums.

However, your payment will be taxable, making the situation more difficult. This is why considering how your family will cope with the income loss for the first year after the child is born is very essential.

You must evaluate the money you may receive through the benefits of maternity leave and try to maintain your living expenses on a low budget while you are pregnant so that once the baby comes and you are getting paid less, the situation doesn’t become distressing for you.

2. Education expenses

Education expenses take a lot of toll on parents’ pockets. As soon as you begin going to the office again, you will admit your child to daycare. From daycare till their post-graduation studies, education expenses keep on increasing.

The Canadian government has introduced a Registered Education Savings Plan (RESP) to help parents save up the money for their child’s education as the expense of college and university rises. Despite the fact that RESP benefactions are not tax-deductible, the amount increases tax-free. In addition, eligible withdrawals are recognized as the student’s money, the tax for which is charged at a lower rate.

3. Healthcare expenses

We adore our kids and wish to provide for them. As a result, you’ll need to budget for medication costs if they fall sick in addition to some basic everyday necessities like diapers, dental care, and eyeglasses if and when required.

To save on healthcare expenses,  you can take off medical charges for your children up to a certain amount and receive a reimbursement on the taxes, like federal and provincial taxes.

Furthermore, the Régie de l’assurance Maladie du Québec (RAMQ) insure dental checkups for all the kids under the age of ten. It also covers some additional costs, such as fillings and x-rays. Children under the age of 18 are also entitled to free eye tests annually from an optometrist.

4. Necessity expenses

As you welcome a new member in your family, you need to shell out for their recurring expenses as well. For instance, they’ll require clothing, baby food, diapers, and baby toys in the initial few years. Since you have to restock most of these things practically every month, these charges must be considered monthly expenses.

A few one-time purchases that can cost you a lot are a crib, car seat, stroller, etc. All these products are pretty expensive, and if you purchase the new ones, they might cost hundreds of dollars in total. Check among your friends, family, and neighbors who have recently given birth to see whether they have these items. On many e-commerce platforms, you may also browse for used items. Keep a look out for big discounts on these high-priced items.

5. Additional housing expenses

While calculating the total cost of having a child, most parents overlook housing. Before giving birth to a child, it is essential for you to make your home spacious and comfortable to accommodate them. You’ll also require some furnishing in your child’s room and decorate it according to a child’s likings.

The annual cost of housing for a child in Canada is $2,720 or $226.67 per month. This amount is inclusive of the furnishing and other housing essentials. When you count all of your expenses until your child reaches the age of 18, you’ll need to shell out a total of $51,680 to provide a home for your children.


There’s no denying that having a child comes at a high cost. Yet most parents wouldn’t want to do it any other way, as this is the most beautiful experience in the world. So, it surely helps to plan ahead and make allowance for expenses that are about to come.

Start to save as early as possible and communicate with other experienced parents for some cost-cutting suggestions. Planning far ahead of time will help you prevent financial and emotional strain after the baby arrives. As a result, you will also get more time to take care of your newborn child.