By analyzing data collected from Canadian households between 2014 and 2017, Statistics Canada has determined that families with annual income ranging from $100,593 to $164,547, in today’s dollars, will spend around $356,000 to support each of their children from birth to the age of majority. These expenditures rise to almost $490,000 for higher-income families and average about $290,000 for lower-income families. The main types of expenditures considered in the study include housing (27% to 32% of total estimated expenditures), transportation (11% to 20%), and food (16% to 20%), as well as child care and education (13% to 17%).   

N.B.: The results also showed that total expenditures for a child’s education will jump by almost 30% when parents provide support during the first few years of adulthood (up to age 22 for the purpose of the study). This will eventually raise the average amount to nearly $460,000 per child.

If you are wondering whether your personal finances and investments are in a position to support a child for many years, feel free to discuss this with your advisor.