Most parents are surprised at just how expensive it can be to raise a family amid the high cost of living in Canada, according to a new survey, which says it’s often the “extras” that can add up fast.
Royal Bank of Canada’s (RBC) latest poll findings show nearly three-quarters, or 72 per cent, of all Canadian respondents are surprised by how much child-related expenses have gone up in the last year.
Nearly two-thirds, or 60 per cent, said their household budgets have never been stretched so thin.
That’s just the tip of the iceberg from the Parent Edition of RBC’s 2025 Family Finances Poll, which was conducted by Angus Reid in July 2025 and released on Tuesday. It featured the participation of just over 1,500 Canadian parents that had at one child between the ages of zero and 17.
Raising a child can mean additional costs to a household budget that add up fast, and RBC says it’s the high prices for some “extras” that really catch families off guard when it comes to budgeting.
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“Parents often underestimate how much extras add up over the year, which can bring some unexpected pressure on family finances. Smaller costs can quickly reach hundreds of dollars, while bigger expenses can run up into thousands,” says Dawn Tam, a financial planning consultant at RBC in the survey’s report.
“As a parent of young children myself, I understand the desire to give a child every advantage possible in life.”
The report goes on to say some of these extra costs that can have big price tags include school supplies and field trips, extracurricular activities like sports, music, dance and art activities, as well as March Break and summer camps.
Sixty-seven per cent of respondents to the RBC survey said they would sacrifice their own financial future to spend what they can on their children immediately.
Fifty-three per cent said they delayed or cancelled major purchases, 46 per cent have scaled back or delayed long-term investments, and 41 per cent have dipped into savings or emergency funds to pay for immediate needs.
The theme of households sacrificing their long-term financial goals and current savings to prioritize short-term needs was echoed in another study by Willful, released in October.
It found 58 per cent of Canadian respondents said they were putting off their financial goals and milestones, like buying a home or saving money to raise a family.
The same report found 46 per cent were dipping into their current savings in order to pay for day-to-day expenses.
The Bank of Canada said in November that Canadians concerned about their job security may not be as able to afford anything beyond the essentials, because the future is somewhat uncertain given the trade war with the United States.
Gov. Tiff Macklem at the Bank of Canada highlighted after the last interest rate cut how “cautious” consumers are right now.
“While accommodative financial conditions would support household spending going forward, people who are worried about their jobs would likely be cautious in their spending,” said Macklem.
RBC’s report found more than half of respondents, or 56 per cent, say they can’t afford what they want for their children because of their current financial struggles.
At the same time, nearly half, or 45 per cent, said they felt pressured to buy more for their children than they could afford.
“Trying to manage today’s high costs in a single income household can be so much more challenging — let alone trying to save for the future they’re hoping to achieve, for themselves and their children,” said Tam.
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