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What parents spend in the early years
A major difference between budgeting for a family in 2011, 2015 and 2023 is child care costs. In the table below, you’ll notice the average annual child care cost is $5,230 in 2023. Based on MoneySense’s original methodology, this sum is the annual average between when the child is born and the day before they turn 19. In reality, child care costs will be front-loaded in the early years and taper off as they grow older.
Another important note: Thanks to the national $10-a-day child care program, thousands of dollars are being put back into parents’ and caregivers’ pockets each year. Since the program is rolling out gradually until 2026, we’ve used the original child care costs from 2011 and adjusted for inflation. But make no mistake, this is one area where many of today’s parents can save money.
From as early as six months old to the time your child starts junior kindergarten, you may also want to factor into the cost of enrolling them into a daycare or a Montessori program full-time, which can be useful when one or both parents start working again. Even when kids are in elementary school, parents often register them in after-school child care programs, since classes end mid-afternoon. So, expect to pay this annual expense until your children complete elementary school.
What parents spend as their kids get older (up to age 18)
Compared to the early years, it’s hard to predict the costs that will come up as your children get older. They will depend on their interests and needs, as well as your lifestyle as a family. But these are some of the costs that are likely to come up.
Household costs: When you have multiple children, your property may suddenly feel like it’s shrinking. Moving into a larger home or rental means incurring additional costs, such as one-time moving expenses, as well as increased property tax, mortgage payments and utility bills. Plus, as your kids grow, you’ll want to upgrade to buy more furniture and home decor.
Transportation costs: When travelling around town with a little one in tow, having a reliable car is crucial. A car with adequate trunk space (to fit all the baby equipment) and extra legroom can make all the difference. Later on, a second car can come in handy—especially if you and your partner are commuting to work and need to take turns attending your child’s recreational activities and doctor’s appointments. Related costs such as car insurance, gas, parking and maintenance will increase as well.
Health care costs: You’ll want to add your child to your benefits and insurance plan, if you have one. Be prepared to pay out of pocket for medication, vaccines, dental care and services provided by specialists not covered by the government or your benefits plan.
Food costs: At around six months, your child will start eating solids, which means you’ll need to bulk up on groceries. At around 12 months, some kids transition from formula or breast milk to cow’s milk. Plus, if your kids have any allergies or food sensitivities, you may have to buy specialty food items. During their teenage years, you’ll have to increase your food budget as they’ll have bigger appetites for their growing bodies.
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