Cost of kids

Have we overestimated the cost of raising kids? What rising mortgage rates mean for Canadians and more.



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  • A new report by the Fraser Institute says it costs less to raise a child than previous studies, including an estimate by us here at MoneySense, have suggested. The conservative think-tank says it is possible to raise a child on about $3,000-$4,000 year whereas we’ve pegged that number closer to $13,000 a year when you factor in shelter, food, clothing, recreation, child care and more. Parents, tell us what you think by leaving a comment in the comments section below.
  • Still on the topic of raising children, a CIBC survey suggests 36% of Canadians are delaying retirement to help pay for their kids post-secondary education while one-third have taken on extra debt to help pay tuition and related expenses.
  • TD and RBC followed in the footsteps of BMO Thursday, raising rates on fixed mortgages. Qualifying applicants can now borrow at just above 3.6% interest for five years at most big banks. That’s still well below historical highs so potential homeowners needn’t be too discouraged especially since the rising rates may have the effect of cooling average national  house prices. Those with a variable rate mortgage might want to consider locking in the future however as rates are expected to continue their slow, upward trajectory.
  • A Michelin-starred meal for $6? It’s true, at least in some places in the world. Find out where over at Canadian Business.

3 comments on “Cost of kids

  1. I read a bit about this new study on the cost of raising kids. The factor they didn't take into consideration is the child care. Unfortunately in this day and age, I think the overwhelming majority of parents need to have child care and need have more than one income coming in to cover just basic costs like housing. Also they obviously didn't take into consideration the post secondary schooling and even saving up for it. You could put in over $2000 per year for 18 years and barely make a dent in the cost of post secondary these days!


  2. The challenge with determining the cost of raising kids is that it's entirely dependent on the assumptions you make. Is child care required or not? Does the family need a larger living space than before having children, or not? How many children are in the home? Do any of them have special needs?

    The true cost of raising children will vary widely depending on the variables involved, and any 'study' that proclaims that they have a single answer is flawed from the start.


  3. The report on the cost of kids is very misleading. For one let’s look at recreation. I live in NS and the cost for sports is at an all time high, how about musical tuition. I pay $700 a year for each of my 2 children. Food – less expensive? Do I even need to say anything. Milk, bread, fruit, meats are all astronomically more expensive. Child care (not included) is very exensive. I really don’t know what the point of the study is. It seems to be quite ridiculous.


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