Cost of kids - MoneySense

Cost of kids

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

  • 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.