Cost of Having A Child


Meet Elisa and Dave Santiago. A couple that currently resides in a condominium in uptown Toronto. They found out they were expecting twins, Micah and Yuna. After the birth of the twins, reality hit as the couple noticed the cost of raising a family is at a high.  For an insight look at the Santiago’s story, click here.

According to Statistics Canada, new parents or parent with young children will carry a debt that is worth 180% of their after-tax income. The national average for this statistic is an average of 161%. The cost of having a child is expensive and according to Fraser Institute study, it indicates an estimate of $3,000 to $4,000 per year to raise a child. This figure excludes housing, daycare, and other variables. Of course, the cost of a child may be higher due to location of the family, child’s age, and more. According to the article by the National Post, the estimated cost to raise a child in Canada and the United States is $10,000 to $15,000 per year. Many can agree that the cost of having a child can be pricey, but the cost will vary due to the person’s cost of living.

There are many things to take into consideration when it comes to the cost of having children. First, the mother will typically take maternity leave; therefore, the household income will drop leaving them to rely on one income instead of two. Secondly, the constant purchases of baby products and clothes will increase their expenses. There are many ways of decreasing or minimizing the cost to raise a child. Here are some helpful tips on how to do so.


Every family has their own preference of what kind of crib they will purchase for their new baby. Some tend to spend over $1000 on a crib, but there are cribs available for families that cost around $500. Just to take note all cribs that are available in the market have met the same government safety standards. In addition, finding a crib that can adapt as your child grows will help you save big bucks from converting a crib into a toddlers bed.


There are many coupons available for new parents. Stores like Babies “R” Us and other branding company’s like Huggies offer coupons online. Canadian Mother Resource (CMR) is a parenting website that offers a gift by signing up to their community. This is a great way to help save a couple of bucks in your budget.

Cloth Diapers

Cloth Diapers is an alternative to disposable diapers. There are a few pros and cons of choosing this route. Pro is it will save you a lot of money if you go for this alternative. The con is the amounts of washing you have to do with the cloth diapers and potentially increasing your hydro expenses. This option is based on preference.


Hand-me-downs is a great way of  saving money when having to purchase clothing for your children. If you know some friends who have older kids, they might still have some reusable clothing that may fit your child, again helping to keep your expenses down. Also, they might have other items such as toys, baby gear, etc. that can help you with expenses.

Government Incentives

Take advantage of what the government offers for parents with children. The federal and provincial government offers tax deductions, tax credits, and other benefits, but some restrictions may apply in order to qualifying for these incentives. Parents should look at the Universal Child Care Benefit (UCCB) and the Canada Child Tax Benefit (CCTB) to see if they are eligible to receive these additional benefits. For more information, please visit here.