Canadian parents may ‘underestimate’ the cost of raising a family, says RBC

Most parents are surprised at just how expensive it can be to raise a family amid the high cost of living in Canada, according to the latest survey study.

Most parents are surprised at just how expensive it can be to raise a family amid the high cost of living in Canada, according to a new survey, which says it’s often the “extras” that can add up fast.

Royal Bank of Canada’s (RBC) latest poll findings show nearly three-quarters, or 72 per cent, of all Canadian respondents are surprised by how much child-related expenses have gone up in the last year.

Nearly two-thirds, or 60 per cent, said their household budgets have never been stretched so thin.

That’s just the tip of the iceberg from the Parent Edition of RBC’s 2025 Family Finances Poll, which was conducted by Angus Reid in July 2025 and released on Tuesday. It featured the participation of just over 1,500 Canadian parents that had at one child between the ages of zero and 17.

Raising a child can mean additional costs to a household budget that add up fast, and RBC says it’s the high prices for some “extras” that really catch families off guard when it comes to budgeting.

“Parents often underestimate how much extras add up over the year, which can bring some unexpected pressure on family finances. Smaller costs can quickly reach hundreds of dollars, while bigger expenses can run up into thousands,” says Dawn Tam, a financial planning consultant at RBC in the survey’s report.

“As a parent of young children myself, I understand the desire to give a child every advantage possible in life.”

The report goes on to say some of these extra costs that can have big price tags include school supplies and field trips, extracurricular activities like sports, music, dance and art activities, as well as March Break and summer camps.