Sisi Chan

# Canadian parents may ‘underestimate’ the cost of raising a family, says RBC

Most parents are surprised by the high cost of leading a family in Canada, with unexpected ‘extras’ adding significantly to the overall expenses. A picture representing this situation can be found at https://d21y75miwcfqoq.cloudfront.net/.

The Royal Bank of Canada’s (RBC) recent research reveals that child-related expenses have unexpectedly risen for most Canadian parents, as per their poll data.

According to the RBC’s 2025 Family Finances poll, conducted by Angus Reid which included over 1,500 Canadian parents, the cost of nurturing a family far surpasses most estimates.

Raising a child can significantly impact a family’s budget, especially with the soaring prices of certain ‘extras’.

Dawn Tam underlines, “Parents often underestimate the mounting cost of these extras over the course of a year.”

The report further estimates notable potential costs for parents, such as those incurred for school supplies, field trips, extracurricular activities, March Break and summer camps.

Of the RBC survey respondents, 67% would risk their financial future in order to accommodate immediate spending on their children.

Interestingly, 53% of parents expressed that they’d postpone or cancel major purchases, cut back on long-term investments, and resort to savings or emergency funds to cover immediate needs.

A concerning trend of households sacrificing long-term financial objectives in favor of meeting short-term needs is apparent, a pattern which is backed by a study from Willful.

From the Willful study, it was found that 58% of Canadians are even postponing their financial targets to create families.

The same record sheds light on 46% of poll participants utilizing their current savings to manage daily expenses.

Gov. Tiff Macklem from the Bank of Canada cautions consumers’ restraint due to job insecurity in the current scenario.

More than half of the respondents admit to RBC’s report that they cannot afford desired amenities for their children due to ongoing financial burdens.

Simultaneously, nearly half of the respondents feel pressured to purchase beyond their affordability for their children.

“Trying to manage today’s high costs in single-income households can feel like an uphill battle,” Dawn Tam articulates on the struggle of curbing costs.