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When it comes to raising children, parents want to provide their children with the greatest life possible. The cost of raising a child may quickly build up, from education to healthcare and other essential requirements. As a result, many parents ask whether Canada is a good place to raise a family from a financial aspect. In this post, we'll look into this subject and look at some of the elements that influence the financial viability of child-rearing in Canada.
Childcare is one of the most expensive aspects of parenting children. According to a Canadian Centre for Policy Alternatives report, the cost of full-time infant care in Canada can range between $1,400 and $2,200 per month, depending on the province. This can be a high cost for families, particularly those with many children. While subsidies and tax credits are available to assist in offsetting these costs, they may not be sufficient for certain families.
In Canada, private schools are more costly than public ones. In Canada, public schools are free, although there may be extra costs for things like materials, uniforms, test fees, field excursions, and tutors. The price has increased over time in this area as well.
The average foreign undergraduate tuition is estimated to cost $33,600 based on statistics from Statistics Canada.
Canada has a universal healthcare system, which means that all citizens have access to medically necessary services without paying out of pocket. However, there are still some healthcare costs associated with raising children, such as dental care, prescription medication, and vision care. While some of these costs may be covered by insurance or government programs, parents may still be responsible for some out-of-pocket expenses. Still, it can be so much money that taking out a loan or finding out how home equity loans work can be helpful.
Throughout the first year of a child's life, many parents spend as much as $76 each month, although obviously, this depends on income levels. Particularly if they have adolescents or tweens, families might spend more than $1,280 per year on apparel.
Your kid may need specialized attire as they become older if they want to participate in sports or other activities. As babies grow quite quickly, you will need to buy new clothes for the kid often as they become older, even far into their teen years.
Fortunately, there are alternatives to replacing your child's clothes every time they outgrow them. You may use specialized strategies to save costs, such as shopping during sales, thrifting, consignment store shopping, or even purchasing things your kid can wear over more than one season.
Sports, music lessons, and dancing classes are a few examples of extracurricular activities that may be a great way for kids to develop their interests and talents. They could, however, also be expensive.
Ipsos research indicates that the typical Canadian family spends $1,000 annually on their children's extracurricular activities. This indicates that during the length of a kid's upbringing, the cost of extracurricular activities for one child might vary from $12,000 to $24,000.
If you decide to formula feed your kid, the cost to your family will probably be extremely high for the first few months of their existence. Since the formula is your child's main source of nourishment, be prepared to spend up to $300 per month on it! This cost will decrease as you progressively add more foods as they deteriorate.
It makes financial sense for your kid to consume the same foods as you. As kids only consume a little piece of an adult's meal while they are young, it seems as if you are just giving them a small portion of your supper. You may have to spend extra money on specialized meals for your kid if they have allergies or other dietary restrictions.
Despite the high expenditures of raising a kid in Canada, the government does provide some assistance to families. The Canada Child Benefit (CCB) is a monthly tax-free payment made to families with children under the age of 18. The amount of the CCB is determined by family income, the number of children in the family, and the children's ages. The average yearly CCB payment for a family with one child is $6,997, according to the Government of Canada.
Several government programs, in addition to the CCB, can help cover the costs of raising children in Canada. The Child Disability Benefit, for example, gives financial aid to families with disabled children, and the Universal Child Care Benefit provides a monthly payment to families to help cover the cost of childcare.
Taxes and Income
Income and taxes are two major elements influencing the cost of raising a kid in Canada. In 2020, the median total income of Canadian families with children under the age of 18 was $109,690, according to Statista. Although this may seem to be a significant sum, it may not be sufficient to pay all of the expenditures connected with raising children, particularly for families with several children.
Taxation, in addition to income, influences the cost of raising a kid in Canada. The tax system in Canada is progressive, which means that higher-income people pay a bigger proportion of their income in taxes.
Although this system is intended to help redistribute wealth and offer greater assistance to lower-income families, it may also mean that higher-income households will pay a considerable amount in taxes, lowering the amount of discretionary money available to raise their children.
In Canada, raising a child may be expensive, with costs ranging from childcare and education to food and clothing. Families can manage these expenses and provide a happy and healthy upbringing for their children by careful planning, budgeting, and taking advantage of government assistance.