How Much Will It Cost to Raise a Child in Canada in 2026?

Deciding to expand your family is one of the most consequential choices you can make. Parenthood affects your finances, daily routines and long-term plans. In 2011, MoneySense published what it considered to be the most thorough estimate at the time of the average cost to raise a Canadian child to age 18. That analysis was updated in 2015 to reflect inflation. Much has changed since then—particularly the rising costs of groceries, transportation and housing—so I revisited those figures and adjusted them for inflation through 2023 to provide a clearer picture of what raising a child in Canada looks like today.

Before we get into detailed numbers, it helps to understand the broader context for family planning in Canada right now.

Can I afford to have kids today?

Understanding the financial implications of raising children is an important part of deciding when and whether to become a parent. The higher cost of living in recent years has made child-rearing more expensive, but with careful planning many families can still provide a comfortable home for their children.

Trends in Canada show people are delaying parenthood and having fewer children. In 2021 the average age of a mother at childbirth was just over 31, and the country’s total fertility rate was about 1.43 children per woman. Rising expenses, career demands and the disruptions caused by the pandemic have all contributed to these shifts.

Infertility affects roughly one in six couples, and treatments such as intrauterine insemination (IUI) or in vitro fertilization (IVF) can be expensive—sometimes costing thousands or more—without any guarantee of success. These realities add another financial and emotional layer to family planning.

Because becoming a parent is both a financial and personal decision, it’s wise to talk with your partner, review your household budget and set realistic expectations about how children will affect your finances.

The costs that come with having children

MoneySense’s original study from 2011 attempted to estimate the total cost of raising a child to 18. While a long-range average can’t perfectly match every family’s experience, the types of expenses that parents face are consistent. Below is a practical breakdown of the typical costs you should plan for.

What parents spend in the first year

Costs in a child’s first year generally fall into two categories: one-time purchases and ongoing expenses.

• Upfront purchases: Many parents buy essential items before the baby arrives: a crib, stroller, car seat, carrier, high chair and feeding supplies. These are necessary investments that prepare you for day one.
• Ongoing expenses: Recurring items include diapers, wipes, diaper cream and, if needed, formula. You’ll also buy clothing, toys and books—items that children quickly outgrow, so secondhand shopping and hand-me-downs can substantially reduce costs.

The exact total for a baby’s first year depends on location, household income and personal choices, so first-year costs vary widely from family to family.

What parents spend in the early years

One major change since earlier studies is the role of child care costs. In the figures below, the average annual child care expense for 2023 is listed at $5,230. Using MoneySense’s methodology, that number represents an average across a child’s life up to age 18, but in reality child care costs are highest in the early years and usually decline as children grow.

Canada’s national $10-a-day child care initiative is already reducing fees for many families and will continue rolling out through 2026. For consistency with the original methodology, the table below uses the 2011 child care baseline adjusted for inflation, but it’s important to recognize that many parents are seeing significant savings thanks to the program.

From about six months until a child starts junior kindergarten, full-time daycare or early education programs are common for working parents. Even after children start school, many families pay for before- or after-school care, so expect these child care costs to continue during the early school years.

What parents spend as their kids get older (up to age 18)

Costs rise and shift as children grow. Much depends on your family’s lifestyle and your child’s interests, but the most common categories include:

Housing: More children often means a need for more space. Moving to a larger home or rental can bring higher mortgage or rent payments, increased property taxes, utility bills and the occasional one-time moving expense. You may also buy additional furniture and household items as your family expands.

Transportation: A reliable vehicle with enough space for car seats and strollers is essential for young families. Over time you may need a second car. Expect higher costs for insurance, fuel, parking and vehicle maintenance when children become part of your daily routine.

Health care: Add your child to your benefits plan if possible and budget for out-of-pocket expenses like prescription medication, dental care and specialist services that aren’t fully covered by public health plans or employer benefits.

Food: Starting solids around six months increases grocery costs, and by the toddler and teenage years appetites grow. Special diets or food sensitivities can also raise your grocery bill.

Education and recreation: School supplies, extracurricular activities, lessons, camps and field trips add up. Choosing private school will increase costs significantly compared with public education, while public schooling combined with paid extracurriculars can be a middle path. If you plan to help with post-secondary education, opening an RESP early gives more time for savings and access to government grants.

How much does it cost to raise children in Canada? The full picture

What do these expenses add up to for the average Canadian family? Using MoneySense’s 2011 figures adjusted for inflation to July 2023 via the Bank of Canada’s inflation measures, the average annual cost per child for a middle-class couple with two children comes to about $16,900 in 2023. Over 18 years, that amounts to more than $321,000 per child. These figures are rounded estimates and will differ by family, region and lifestyle, but they provide a useful benchmark for budgeting.

These averages reflect a broad view: some parents cut costs through frugality, secondhand purchases and community support, while others spend more on private programs or higher-cost lifestyles. Use these numbers as a guide to plan and prioritize what matters most to your family.

Watching your kids grow up—priceless

Seeing the total cost laid out can be sobering. Raising a child to 18 can cost roughly as much as purchasing a modest home in some Canadian markets, or represent a substantial portion of your retirement savings. But decisions about having children are rarely—and should not be—purely financial. They are also emotional, cultural and personal.

By planning thoughtfully and aligning spending with your family’s values, you can manage costs while still creating meaningful experiences. As your financial situation and priorities change over time, you can adjust how you allocate money. Ultimately, while the financial investment is considerable, the experience of raising and bonding with your children is something money can’t replace.

Read more Making It:

• It’s probably time you switched banks—4 easy steps for Canadians

• Struggling with student debt? Here’s how to pay off student loans faster
• 6 money lessons I wish I knew in my 20s
• How to manage money as a student