Is it getting too expensive to raise a child in Canada?

If you're planning to have a child or are curious about the costs of raising one in today's economy, personal finance contributor Christopher Liew has some tips to help you budget for a new baby, and explains some of the benefits and tax credits available to new parents.

Are you planning to have a child, or curious about the costs of having a child in today’s economy?

Having and raising children has always required some degree of planning and preparation. However, today's rising costs make it increasingly challenging for many would-be parents to consider having a child or adding another member to the family.

Below, I’ll discuss some of the key expenses associated with having a child in Canada, offer some tips to help you prepare and budget for a new baby, and explain some of the benefits and tax credits available to new parents.

In 2022, Canada’s total fertility rate hit an all-time low. The total number of children that women were giving birth to dropped from 2.13 in 1971 to 1.33 in 2022, according to a nationwide study by Statistics Canada.

Society has seen a lot of shifts since the 1970s. There are statistically more women in the workplace today, and the “nuclear family,” with the father earning a good living wage, while the wife stays at home as a full-time caretaker, has largely become an idea of the past.

Highlighting this, the proportion of dual-income families increased from 36 per cent to 69 per cent between 1976 and 2015, according to another income study by Statistics Canada.

One of the contributing factors to this is that the costs associated with having and raising children have become more expensive with each passing year.