How much does it cost to raise children in Canada?

Raising a child or children is exciting and rewarding, however, there is a massive financial responsibility that comes with having a family. In Canada there are so many options for what kind of life you want to provide for your child. It’s important to know the cost of child raising before you decide to take the leap into parenthood.

To get the full breadth of expenses involved in raising a child, it’s good to consider all angles. Education, health care, extracurricular activities, childcare and unexpected needs all require a certain amount of money. In order to avoid the financial overwhelm that many parents experience, it’s smart to learn everything you can about parenting expenses. We’ve outlined how much it costs to raise children in Canada.

The cost of having a baby in Canada

In Canada, most aspects of childbirth are covered under Medicare (Canada’s publicly-funded health care system), for Canadians and permanent residents.

Prenatal care - this includes appointments, ultrasounds and necessary scans or tests before childbirth. Note that prenatal care can be provided by an obstetrician, family physician or midwife.

Labour and delivery - Medicare covers the stay at the hospital stay, all care provided by medical staff, use of medical equipment and tests, medications, and potential interventions such as a caesarean surgery.

Midwives - Registered midwives (including those that attend home births) are covered by Medicare, but the extent of coverage varies by province.

Postpartum care - After the child is born, Medicare covers postnatal care such as followup appointments, breastfeeding support, and mental health services.

There are some non-essential pregnancy and childbirth expenses that aren’t covered by Medicare:

• Private hospital stays and care

• Alternative health care such as naturopathy, functional medicine, acupuncture, massage and non-pharmaceutical medicines such as herbal remedies and supplements

• Specifics tests recommended by naturopathic or functional medicine doctors

READ: Navigating Canada’s Healthcare System

How much does it cost to raise a baby in Canada?

The cost for baby essentials in Canada varies depending on factors such as how often you will need childcare and if you shop for clothing secondhand, etc. Regardless of your choices, saving some money for your baby's needs will make the transition to parenthood easier.

Maternity and parental benefits - Employment Insurance maternity and parental benefits offer financial support to people who are away from work because they’re pregnant or have recently given birth, as well as to parents who take time off work to care for their newborn or newly adopted child.

For the person giving birth, maternity benefits offer up to 15 weeks of benefit payments at 55% of their earnings, with a weekly maximum of $668.

Standard parental benefits can be shared between both parents for up to 40 weeks, at the same rate as maternity benefits. Extended parental benefits provide up to 69 weeks, at a lower rate of 33% of earnings, and a weekly maximum of $401.

You can apply for and receive both maternity and parental benefits at the same time.

Formula and food - Monthly costs for baby formula can range between $200 - $300 per month, depending on whether you breastfeed, the quality of formula, the age of your baby, and how often you supplement with food.

Diapers and other supplies - Things like diapers and baby wipes can cost anywhere from $50-$100 per month. Monthly costs will vary depending on whether you use cloth or disposable diapers, and how old your baby is.

Clothing - Canadians spend anywhere from $20-50 per month on baby clothes. This average depends on shopping habits. Second hand stores in Canada are loaded with quality used baby clothes, making shopping significantly cheaper. Many communities actively support new parents by passing used baby clothes on to new mothers.

Baby gear - The average amount it takes to furnish and stock a baby nursery varies greatly, from $500-$5000, depending on the quality of furniture and gear purchased. Again it's easy to find quality second hand nursery items in Canada, allowing for a much lower overall spend.

Childcare - This amount depends on how much maternity leave you decide to use. Canadian parents spend around $600 per month on infant care after returning to work.

A baby costs Canadians anywhere from $12,000-16,000 per year, depending on spending and lifestyle habits. For a 1-3 year old, the cost goes up to $14,000-$18,000 per year, as expenses increase.

How much does it cost to raise a primary-aged child in Canada?

Everyone has different spending and lifestyle habits and preferences, so the cost of raising a young child in Canada can vary quite a bit. Here is a breakdown of expenses involved in raising a primary-aged child:

Public school: Public school is free for all Canadians and permanent residents, from kindergarten to grade 12. The only time a public school would request money would be for extracurricular activities, field trips, special supplies, or on occasion, sports uniforms. These extra expenses can range from $100-300 per year.

Private school: There are certain factors that will affect the cost of private school in Canada. These factors include school type, grade level and location.

Private day school tuition can cost anywhere from $15,00-$30,000 per year. Overnight boarding schools cost between $63,000 and $83,000 per year. Similar to college or university, there are a number of additional costs such as textbooks, uniforms, digital devices, and fees for extracurriculars and childcare.

Keep in mind that private schools right in major cities are going to be more expensive than those outside the city. Some schools offer financial aid as well.

School supplies: Depending on what is required for your child’s schooling, the average cost of school supplies ranges from $550-750 per year. This includes uniforms, stationary, a backpack and lunchbag, inside shoes, and other supplies that may be needed for the classroom.

Extracurricular activities: Common extracurricular activities for Canadian children include athletics, music lessons (most public schools have a music program incorporated into the curriculum), dance class and theatre. Depending on how many activities your child participates in, the average cost in Canada for primary-level extracurricular activities is around $1,000.

Childcare and after-school care: If after-school care is needed, Canadians pay on average $15-30 per day, or $60-150 per week, depending on the school district. This adds up to $2,100-5,400 per year for after-school childcare.

The federal government is seeking to improve things for parents of young children who are in school. They have announced a plan to lower childcare fees across Canada with a goal to make regulated after-school childcare cost an average of $10 per day per child by 2026.

Food and Nutrition: Food costs vary depending on what kinds of groceries you buy, whether you cook with whole foods or rely heavily on packaged or pre-prepared foods, and how often you eat out with your family. In general, the cost to feed a young child in Canada ranges from $90-230 per month. This amounts to $1080-2760 per year.

Healthcare: Thanks to Canada’s Medicare, healthcare for children is free. Certain things like dentistry, optometry and prescription medications are not free, making healthcare costs amount to anywhere from $100-300 per year for a young child, depending on their needs.

If you consider all of these aspects, the estimated annual cost to raise a child in Canada falls somewhere between $6,000-10,670 per year, if your child attends public school. For a child attending private day school, the yearly cost could be around $21,000-36,000. Costs go way up for boarding school. The yearly cost to raise a child who attends boarding school is estimated at $70,000-90,000 per year.

READ: 2024 Guide to Canada's Education System: Navigating Schools and Universities

How much does it cost to raise a teenager in Canada?

School costs - High school is also free in Canada, but teenagers tend to take part in more non-curriculum related school activities such as camps and special programs. The cost for these can average $400-800 per year.

Extracurricular activities - Teenagers’ extracurricular costs are naturally a bit higher than those for children. From dance uniforms and shoes, to sports gear etc, costs can add up significantly. Yearly, a parent can expect to spend up to $1500 on extracurricular fees, supplies and gear.

Technology - For better or for worse, Today’s teenagers love their phones. A lot. The upside of this is that parents can easily get a hold of their teens. Additionally, nowadays most high schools require students to have a tablet or laptop for studying and homework assignments. A basic laptop or smart phone starts at $500+ if purchased brand new.

Clothing - Teens, especially girls, like to stay up to date with fashion. Teens are still growing as well, so wardrobes need to be updated or fully replaced regularly. Expect to spend anywhere from $300-500 on clothing and shoes for your teen, per year.

Personal Care - People generally start caring more about personal care when they become teenagers. They will want things like makeup, hair products, deodorant, skincare products, razors and feminine care products. Expect to spend up to $50 a month on these things for your teen, and sometimes even more for teenage girls.

Transportation Costs - Beyond saving up for a car, there are costs involved in the licensing process.

• Driving school - If you decide to go with driving lessons (good decision, by the way), the average cost for driving school in Canada is between $600-$1200. This includes up to 10 lessons.
• Learner’s License (L) - $15
• New Driver’s License (N) - $35
• Full Licence - $50

Healthcare costs - Thanks to Medicare, basic healthcare for teenagers is free. Things like braces and glasses are paid out-of-pocket and can cost hundreds, if not thousands of dollars. Orthodontic treatment can cost anywhere from $3,00-10,000 depending on the type of treatment. Basic custom eyeglasses cost $150-200 dollars.

Is Canada an expensive place to raise children?

This is a tricky question to answer. In general, Canada has a high cost of living. That being said, there are a lot of financial benefits in Canada, along with Medicare, that can assist families with the costs of raising a child.

Canada Child Benefit

The Canada Child Benefit (CCB) is a tax-free monthly payment from the government, for families to help cover the cost of raising children under 18. The amount varies, depending on household income, the number of children, and their ages.

Lower-income families will receive higher benefits. Payment amounts are based on annual tax returns. If your child has a disability, you are eligible for extra CBB support.

For the period of July 2024 to June 2025, the maximum monthly benefit was $648.91 for children under 6, and $547.50 for children aged 6 to 17.

Childcare Subsidies

Childcare in Canada is subsidised, but the level of support depends on what province or territory you live in. Just like the CBB, these subsidies are based on income level, with lower-income families receiving more support.

Employment benefits extending to children

Some jobs such as those in health care offer extended employment benefits. These can include benefits for spouses and offspring, such as coverage for optometry and dental needs for your family.