arrow44 Comments
  1. FourPillars
    Jun 14 - 7:56 am

    That’s a lot of dough!

    We never had a change table – we couldn’t decide where we wanted to put it if we had one and we ended up just changing him on the floor which is safer anyways.


  2. Canadian Capitalist
    Jun 14 - 8:05 am

    On the bright side though, babies take up so much time that there is little chance of blowing money on frivolous shopping.

    Jun 14 - 8:18 am

    I can’t get over how much day care can cost! Next question is, how does one go about choosing a good day care?


  4. FourPillars
    Jun 14 - 8:35 am

    I used to be a bit of a socializer…expensive dinners, sporting events, booze etc. I honestly think having a baby has saved me money because I don’t do any of those things anymore.


  5. Big Cajun Man
    Jun 14 - 8:46 am

    Don’t forget incidental costs like if your child wants to enjoy pasttimes like:

    * Piano Lessons $200-$1000 per year
    * Hockey: $2000 per year is about average without travel and such
    * Dancing or other arts: Unknown but not cheap

    What about those family vacations too?

    They are priceless as “assets” though, so I don’t mind paying the price either :-)


  6. Canadian Capitalist
    Jun 14 - 9:17 am

    FT: We just asked around for recommendations for daycare. It’s easy to see if a daycare is good: your child should be happy after the initial weeks.

    Big Cajun: I deliberately left out the costs of “big babies”. You’re right: sports, piano lessons, iPods, Disney vacations, school supplies, birthday parties all cost a pretty penny.

  7. Big Cajun Man
    Jun 14 - 9:20 am

    AND allowances too! :-) :-(

    Again, worth every penny, however, best investment going. –C8j

  8. Jon D.
    Jun 14 - 9:47 am

    Your daycare costs are a little off for Ottawa CC.

    Registered daycare in Ottawa at a bilingual centre is ~ $1100/mth for under 18 months of age. (the quote I got) If the mom is going back to work at 12 months. $985 at the same daycare after 18 months of age.

    Registered home daycare (the route we’re going in August) is $225/week. This may be high, but the it’s a 1:3 ratio and right around the corner from our house.

    Yes the tax deduction (for the lower income partner) is capped at $7000 /yr YET the $100/mth Conservative UCCB is taxed on that same partner.

  9. KS
    Jun 14 - 9:54 am

    There’s a great article in the most recent edition of Moneysense magzine. It talks about how the Canadian tax system does not favour young couples with kids. They also interview a young working couple in Ontario with two kids and they are basically just breaking even each month.

    Having kids is expensive, and at the end of the day once all expenses and taxes have been paid there isn’t much income left.

  10. [...] as a Consumer Good vs a Producer Good Canadian Capitalist wrote an excellent post about the cost of children. As someone who doesn’t have children (and doesn’t really expect to) you might think I [...]

  11. Jon D.
    Jun 14 - 10:02 am

    KS: I can believe it. In the 70s and 80s, there were more stay-at-home Moms to raise the children, or, in my Mom’s case, to provide reasonable care while my Mom worked. Also, it seems there is less of a “community” feel and effort to support young families as the drive to have working adults replace babyboomers who retire.

    All Canadians should at least appreciate the 1 year of mat./parental benefits because they certainly don’t have that in the States.

  12. Canadian Capitalist
    Jun 14 - 10:26 am

    Jon: We send our kids to a non-profit, registered day care and we pay $942.50 per month. I am sure there are differences in fees between day care centres.

    KS: I read that article too and I agree with its suggestion that as a society, we should provide financial incentives to young families to have more children than average.

  13. Jon D.
    Jun 14 - 10:38 am

    Maybe I’m the one who’s off! Definitely got to shop around for day care!

  14. Canadian Dream
    Jun 14 - 11:29 am

    Daycare cost vary heavily by region. My wife charges $30/day for full time care (she doesn’t take kids under 1 year).


  15. mom of a 19-month old
    Jun 14 - 11:33 am

    Baby denifitely costs money,; they also serve as great incentives for their parents to accumulate the family net worths. At least this is true for me.

    New members to the family, they change their parents’ life style, personal goals, career path and pace, and much more.

    A more in-depth cost and benifit analysis is suggested here. :-)

  16. telly
    Jun 14 - 12:31 pm

    I read that article as well, but I have to say, I have a hard time feeling badly for a couple that has two healthy children, a mortgage that “consumed a reasonable 25% of their income” (before the children came along) and spend “$10k a year toward running their cars”.

    My mother was a stay-at-home mom and my dad had a decent income but nothing to write home about. They raised 3 children in a small to medium sized home with only one car for most of my childhood. I never felt like we didn’t have enough.

    Couples tend to have children later in life these days – usually after they’ve been established in their careers and livin’ the good life with two incomes. Once the kids come, adjustments need to be made but many couples aren’t willing to do that. Instead, they’re looking to move from a 1,500 sq. ft. to a 3,000 sq. ft. house because “it’s too small”.

    Though I understand that children aren’t cheap, I just have a hard time sympathizing too much with parent’s that say they can’t afford a 3rd child because they aren’t willing to give a little up.

  17. Canadian Capitalist
    Jun 14 - 1:51 pm

    telly: If our birthrate was high enough to support an aging population, I would agree that a family that wants a third child needs to figure out how they will be able to afford it on their own. But the reality is we have a low birth rate. If a little financial help would push them over the edge and society benefits as a result, it is up to us to decide if we want to make that investment.

  18. florch
    Jun 14 - 3:02 pm

    Bravo, CC. I’ve been looking for words as eloquent as yours to make that exact argument.

  19. TonyR
    Jun 14 - 3:38 pm

    I agree CC, and I live in Wpg where everything is cheaper. (eg. day care used to cost $25/day/child at a very good centre here.) How could a couple just starting out afford a $250K house, even one car, and more than 2 kids? We also have to abide by new rules such as seatbelts and car seats that means a family with 3+ kids can’t just buy a small sedan and pack the back seat with their brood. Add that to the systemic bias in favour of boomers plus more activities these days (btw dance classes run about $1000/yr here) and it becomes difficult. On the flip side we also tend to forget that 2 working parents increases other costs such as food/groceries because no one has time to cook from scratch anymore.

    And… who gets to income split: seniors with enough income to be very comfortable but didn’t bother to use spousal RRSPs.

  20. The Financial Blogger
    Jun 14 - 7:48 pm

    Let’s all move to Quebec ! they have $7/day daycare. I can’t believe it is that expensive outside the Belle Province!

    I calculate $400/months for my 2 years old son on average. That obviously doesn’t include day care or major purchase such as crib. That $400 is only for food, diapers, clothes and activities.

    But you know what, when I come home and he runs to me and hold me tight, it is priceless!

  21. KS
    Jun 15 - 9:54 am

    Yes, the Belle Province has $7/day daycare. But most places have a 2-3 year waiting list!

  22. Canadian Capitalist
    Jun 15 - 10:52 am

    Jon: You’re likely right about the daycare costs for children between 12 and 18 months. Our kids are now almost 2 and I found out yesterday that the daycare they go to don’t even accept children below 18 months. So, your $985 is pretty close to what we are actually paying.

  23. TonyR
    Jun 15 - 11:42 am

    Don’t forget QC daycare is like health care… It’s included in your income tax bill.

  24. The Financial Blogger
    Jun 15 - 8:09 pm

    Actually, in QC, you work for the government as you are so taxed that nothing is left in your pockets ! LOL!

  25. GTA
    Jun 19 - 1:32 pm

    I m not sure why people keep saying baby/kids cost a lot, I have a one year old and I m making more money, see below:

    1. Myself, my wife and my daughter lived with my parents, we do not pay rent, its a 2500 sqft home with 6 bedrooms, we got enough room for two kids and two pair of parents.

    2. I got $160 child care benfit etc… from the goverment, the 60 dollars are tax free, my wife breast feed the child, no formula required, the only variable cost is the diaper, which cost around $30 per month, our net gain from the Government benefit is like $130-tax.

    3. My wife got piano performance art cetificate, she teach my child piano at home, no need to join piano class.

    4. Since we live with my parents, they are retired, they provide FREE Daycare, Also, I still pay them $7000 per year so that I can CLAIM the Childcare expense!!! I gain another $2000 or so from the tax break. (My parents got very little income as they are not 65 yet, no OAS etc…, so they pay no tax even after reporting the $7000 from me.)

    The conclusion is that I make like $100 a month from the child care benefit and around $2000 tax break per year.

    Also, our friends give us the high chair, all the toys and most of the clothings for the child, we RARELY spend any money to buy new things for my child!!!!

    My dad acutally told me that he know one family who got 6 child and they live on the child benefit like $1500 a month etc.. and both of them does not need to work!!!

    Stop saying children cost money, in my case children MAKE MONEY!!!!!!

    I m planning to max out the RESP so that I can get FREE grant from the government for investment (its like someone borrow you money to invest for free) and tax defered!!!

  26. Canadian Capitalist
    Jun 19 - 2:51 pm

    GTA: All I can say is that very few people are in your position. How many extended families live under the same roof? How many grand parents are even in the same city and willing and able to provide child care?

  27. FourPillars
    Jun 19 - 4:41 pm

    GTA – do the math. If you’re paying your parents $7k per year and making $2k in tax rebate + $1200 in UCCB that comes out to a loss of $3800. And you say you make money from the kids? The RESP is another short term cash flow loser – you contribute $1000 and only get $200 deposited into the account. Where are the dividends?

    On a more serious note, I suspect we’re in a break-even situation with our kid because of his generous grandparents and all the used items we’ve borrowed (and we don’t live in my parent’s basement) but I don’t think that is the norm. Part of the problem is that a lot of new parents buy too much stuff and buy it all new.


  28. Riscario Insider
    Jun 19 - 10:45 pm

    Some folks have furry four-legged babies. Pets don’t need daycare or many of the other expenses of human children :)

  29. GTA
    Jun 20 - 11:15 am

    I agree that the loss will be $3800, but the money is going to my parents pocket, that will use to pay for bills for our home, which is much better use that paying daycare business, someone elses profit!!!!

    For RESP, I acutally did some calculations, and comparing if I put in 18 years of contributions into RESP and get the 20% FREE Grant that comes along with it, during the 18 years of the EXTRA investment compounded earning that comes from the tax deferal and 20% FREE Grant, even if my kids does not go to college and I have to return all grants and tax the earning on marginal taxrate and 20% surtax on top of it, I still MAKE MORE than investing outside RESP. The tax deferral and 20% grant combined with compounds earning year after years for the next 18 years DOES MAKE A BIG DIFFERENT!!!

    Riscario Insider:
    Pets do not talk in English or any human language and do not say daddy and mommy before they turn 1 year old!!!! Please do not compare HUMAN with ANIMAL, it does not make sense.

  30. telly
    Jun 20 - 12:44 pm

    I agree with FourPillars here. I’ll come clean and admit that we don’t have any children (yet) so it’s probably still early for me to speak on this (though it’s never stopped me before ;)) but I’ve been to about 4 baby showers in the last few months and I often wonder:
    Does one really need a baby wipes warmer or a diaper genie (with refills)?

    I remember thinking the same during the wedding showers (a $250 vegetable serving bowl???)

    I just think people are starting to confuse needs with wants and wonder why they can’t afford a 3rd child. If it’s really important to you, most often you should be able to find a way.

  31. FourPillars
    Jun 20 - 5:26 pm

    lol telly – baby wipes warmer?? I’ve never heard of such a thing.

    We have a diaper genie and I would definitely recommend this. You can get by without one but I wouldn’t want to…

    $250 veggie bowl? $250 will buy you a lot of veggies.

    GTA – the RESP is not a profit centre for the parents – if you are saving for their education in some form then that’s costing you money!! The only way you can profit is if they don’t go to school.

  32. Canadian Capitalist
    Jun 20 - 6:39 pm

    I’ve heard of heated changing tables (apparently it is a best seller created by an ex-tech. worker who told that local newspaper that high-tech changes every year but the jolly jumper has remained the same for 30 or 40 years. I suppose he has a point), so come to think of it why not a heated baby wipes. I’ll agree with Mike about diaper genie. Better to get one :)

    GTA – I don’t see how you can profit with a RESP, which is intended to help you save for your child’s education. You have to return the grants + pay a 20% penalty + pay tax at your marginal rate. I don’t see how you’ll benefit if your child doesn’t go to school.

  33. helena
    Jun 22 - 5:58 am

    That’s a very useful piece of information. I’m gonna be married soon and a baby is in my plans. It is rather expensive to have a baby today, isn’t it? And I want to calculate all the expenses going for a wedding party as well. Welcome to my blog, too, where you can also find information about life and finances.

  34. New Mommy
    Nov 27 - 12:41 pm

    I don’t understand how GTA is able to “pay” jis parents for childcare to create a tax deduction. The tax guidelines are very clear that a parent living under the same roof does not qualify as a caregiver (as most family member do not)

  35. Canadian Capitalist
    Nov 27 - 1:37 pm

    New Mommy: I didn’t know that grandparents do not qualify as caregiver if they live under the same roof. Can you point me to where you found this information? This form from CRA makes no mention that you can’t pay grandparents:


  36. Rylan
    Oct 18 - 3:24 am

    This article is a thoughtless joke. Anyone who has responded to it is also a fool. Myself included.

  37. [...] Having children is not a cheap proposition these days, especially when you consider long term costs. The older your children become, the more they are going to end up costing in the long run. High education prices, for example, continue to soar making it nearly impossible for you to put your children through school. The housing market is also becoming nearly impossible. All of these things seem really far ahead when your child is young, but if you do not start saving up now you may find yourself really short in terms of capital and income when you finally do need the money to get things going. [...]

  38. [...] How Much Does it Cost to Have a Baby? [...]

  39. TJ
    Sep 27 - 8:25 am

    Both my parents receive OAS , CPP and GIS payments .

    They have no other income besides the above 3 i.e RRSP income , Investment Income , Employment icome etc .

    Now I was wondering if I pay them $ 7,000 a year to take care of my kid ( so that I can claim the expense ) and they also receive $ 7,000 extra each year is it worth it as although I might get a tax credit their OAS/GIS will go down because of the extra income .

    So basically my tax gains will be offset by their deduction in OAS/GIS .

  40. [...] Canadian Capitalist asks how much does it cost to have a baby? [...]

  41. Umpa Tan
    Nov 13 - 1:11 am

    Looks like having kids is like owning an American gas guzzling SUV. It is cheaper to control one’s hormones and bank the money into a BMO Monthly Income fund and collect dividends each month. Pretty soon, you would be able to live off dividends and not work, if one controlled one’s hormones and didn’t have a baby. Those mouths to feed consume time away from being able to work, and money for them in various ways explained. I make only $12.00/hour but bank $20,000 a year because I eat for free going to Sikh Temples that offer excellent vegetarian food, and crashing on couches of friends. Also, taking a night security job where you can sleep in a building while getting paid is a great way to not only offset rent, but to collect a secondary income in addition to your regular 9-5. It is important to get 2 security guard jobs one working 4 days and the other 3 days, or one 2 days and other 5 days for 8 hours per day at night so you don’t have to pay rent. If you get fired, you use the other reference to replenish employment with another security company, so you don’t have to worry about references. Remember, though, as long as your 9-5 job remains intact, the extra security job is a side job that would not have existed anyways so it matters not if you ultimately lose it all since you would have gained income to bank until the fun ride is over.

  42. Nadim
    Dec 09 - 1:53 am

    For real, first cost was the wedding, rings, and now the baby. I work 2 jobs to catch up and 60 hours a week.

    You can make money wtih an RESP if you are willing to wait 18 years. Your principal is 100% guaranteed and returend to you tax free. Your interest assume max 42 k, return 40%, 140 k 20 years later.

    People need to stop asking governments to reduce tuition fees and increase the RESP program.

    If people really want to be rich, they’ll double up their mortgage payment and pay that off in half the time and save 80 k!

  43. Lol
    Apr 19 - 5:23 pm

    I’d rather have pets than children. I can’t stand kids so I guess I’ll be saving a whole bunch of money avoiding them…. Thank God!!!!

  44. Stacey
    Jan 14 - 9:17 pm

    First of all the choice to have a child should be so much more in depth than finances. Life is expensive so are children. The real question for couples contemplating children is how much of yourself are you willing to give? Financially speaking just tips the iceberg so to speak. Time, emotional support and entirely reinventing who you are is much more to contemplate than finances. Financially speaking where there is a will there is a way. But what about the rest??

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