How much do Canadian families spend raising a child?

How much do Canadian families spend raising a child? About $293,000 from birth to age 17 (an average of $17,235 per year) for a two-parent, middle-income family with two children, according to the first national estimate in over a decade.

How much a family spends on a child hinges on family income and the number of people in the family

Not surprisingly, how much a family spends on a child is linked to family income and, to a lesser degree, family size.

Two-parent families with two children and an annual income of more than $135,790 from 2014 to 2017 spent on average $403,910 per child from birth to age 17. By way of comparison, the same sized family making less than $83,013 spent on average 52% less per child, or $238,190.

One-parent families with two children and an annual average income of less than $83,013 spent on average $231,260 per child from birth to age 17, while those making $83,013 or more spent $372,110 per child.

Spending on children rises by almost one-third when accounting for younger adults living at home

Of course, children today are much less likely to leave home at the age of 17 compared with earlier generations. When adult children aged 18 to 22 living with their parent or parents are considered, the overall amount spent rises by almost one-third (+29%) for both single- and two-parent families. This is likely due to the longer period of expenses as well as higher education costs for this age group.

On average, two-parent families with two children and an annual income of less than $83,013 from 2014 to 2017 spent $308,710 per child living at home up to the age of 22. This figure rose to $378,900 for families making from $83,013 to $135,790 and to $521,270 for those making more than $135,790.

One-parent families with two children living at home up to the age of 22 and a family income below $83,013 spent on average 46% less per child ($299,180) than those making $83,013 or more ($479,830).

Factoring in the cost of housing, transportation, food and clothing

The study found that housing is by far the largest single expense for families raising children, accounting for about one-quarter to one-third of total spending per child from birth up to the age of 22, depending on family type and income level.

For two-parent families with two children, transportation is the second-largest expense in raising a child (18% to 20% of total spending per child), while for one-parent families with two children, food is the second-largest expense (18% to 20%).

Clothing and health care each account for less than 10% of overall expenditures for both one- and two-parent families.

Shelter, transportation and food prices have risen sharply since 2017

The cost of living has risen over the past decade, with especially large price increases for various goods and services since early 2021. These increased costs mean that the amount parents spend on children has likely increased since the data used for this study were collected in 2017.

For example, shelter prices, as measured by the Consumer Price Index, have risen by just over one-quarter (+25.3%) from July 2017 to July 2023.

The cost of transportation was up by almost one-third (+31.3%) this July compared with July 2017, while the price of food was up by over one-quarter (+28.7%).

Child benefits help cover the costs of raising a child

Government transfers can play an important role in defraying some of the cost associated with raising a child.

Child benefits are the largest component of government transfers for couples with children, accounting for 42% of the overall government transfers paid to these families in 2021. For example, most couple families with children (92%) received child benefits in 2021 and among these families with child benefits, the median amount received was $5,900 and the average was $8,300.