How much does it cost to raise a child: practical tools and advice for fitting it into your budget

Can we afford to have another child? Many couples ask themselves this question, and rightly so! It's no secret that an additional child in the family generates its share of expenses, and these expenses are likely to increase over time . How much does it cost to raise a child? Even though a Canadian study conducted in 2015 states that a child costs an average of $13,000 per year, our lifestyle and the choices we make can cause this amount to vary downward or upward.

To help you integrate the expenses related to a new child into your family budget, we have created, in collaboration with Dominique Lépine, financial advisor, the little trick Budgeting for the arrival of a baby. You will find all the budget boxes to review when a new member of the family arrives in order to better anticipate the financial impact of this.

Income adjustment

Leave and preventive withdrawal

First, you need to plan for the drop in income that comes with the arrival of a baby. During maternity leave, paternity leave and/or parental leave, the Quebec Parental Insurance Plan covers between 55% and 75% of income. Don't hesitate to use the benefit calculator simulator to help you assess the impact of such leave on your income.
https://www.rqap.gouv.qc.ca/fr/a-propos-du-regime/simulateur-de-calcul-de-prestations

Canada Child Benefit

The Canadian government offers allowances to help parents provide for their children. Generally, this benefit is paid monthly by direct deposit. To assess the amount of benefits to which you are entitled, do not hesitate to use the simulation tool designed for this purpose.
https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canadian-child-benefit-overview.html

Family allowance

The family allowance offered by the provincial government is paid on the first business day of the beginning of each quarter. However, you should know that you can ask to receive it on a monthly basis, which often makes it easier to keep a budget. It is also possible to simulate the calculation of your benefit via the Government of Quebec website.
https://www.rrq.gouv.qc.ca/fr/programmes/soutien_enfants/paiement/Pages/montant.aspx

Adjustment of expenses

Additional cost associated with housing

The larger the family, the more space is needed. The arrival of a new child may, in some cases, require a change of home or renovation work. These costs must be added to your budget as well as the furniture needed to furnish a new room.

Additional cost associated with transportation

Were you already cramped in your sedan? The new kid on the block may force you to change vehicles. Also, consider including the purchase of new car seats in your budget. Travel costs can also increase. Think about appointments, activities and transportation to daycare and school.

Additional cost associated with power supply

Will your baby be bottle-fed? If so, you will need to consider adding the cost of formula for the first few months of life. At 6 months, your baby will start eating solid foods. From then on, the grocery bill will gradually increase.

Additional cost associated with clothing

You will need to buy new clothes every season, as children grow so quickly. To reduce the amount allocated to this section of your budget, you can buy used clothes and keep the clothes that are still in good condition for the children who will come after.

Life insurance/group insurance

If you don't have life insurance, now is the time to think about getting it. In the event of your death, life insurance will allow the other parent or guardian to provide for the children without requiring additional income. In addition, once the child is born, you will have to add him or her to your group insurance, which will increase the monthly costs of your insurance.

Private medical clinic subscription

Those who are not lucky enough to have a family doctor will have to pay for medical follow-ups. If this is not your case, so much the better! You can leave this box blank!

Dentist

Although several services are covered by the RAMQ for children under 10 years old, cleaning and scaling are unfortunately not. Unless you have insurance, as soon as your child reaches 10 years old, you will have to assume the entire dental costs , because they will no longer be covered by the RAMQ.
https://www.ramq.gouv.qc.ca/fr/citoyens/healthcare/dental-services 

Optometrist

For children under 18, an annual eye exam is covered by the RAMQ. This coverage also includes a $250 reimbursement for the purchase of glasses or contact lenses, for a period of 2 years. Additional costs are your responsibility.
https://www.ramq.gouv.qc.ca/fr/citoyens/assurance- santé/services-optometriques 

RESP

We strongly suggest that you invest in a Registered Education Savings Plan . This savings plan shelters your money from taxes and allows you to take advantage of advantageous government grants to cover all or part of the costs of your child's post-secondary education.

Leisure and sports

If you want to register your child for sports and/or cultural activities, you will need to think about budgeting for the costs. Think about the registration costs and the cost of the necessary equipment. Some competitive activities may also generate additional costs for travel, meals and accommodation.

Daycare service

Unless you're lucky enough to be able to stay home with your children, you'll need to think about child care costs . You can use this tool to calculate what the cost of a daycare spot might be.
http://www.budget.finances.gouv.qc.ca/budget/outil/garde-net-fr.asp

Later, you will need to think about the cost of childcare at school if your child eats lunch at school or has to stay there after class.

Day camp

Chances are you'll need to enroll your child in day camp to afford to work during the summer. Don't forget to factor this expense into your budget.

Guarding

Finally, a babysitter could be useful for your little outings. Unless grandpa or grandma lives nearby!

To help you with your budget, Dominique Lépine, our finance expert, has prepared a table for you which you will find in our practical guide .

This blog post is part of our special "New Baby" feature. To see all the content in this feature, which offers tips and advice to make the arrival of a new baby easier, check out this article !