I have no idea whether this estimate is an exact figure, but I know that there are many costs and expenses when you think about having a child. The first year of a child’s life is one of the most expensive costs for the average parent, with about $8,000 in additional spending.
Giving birth to your baby is the most expensive part of your child’s first year of life. Since the 1960s, the US Department of Agriculture has tracked the cost of raising children, analyzing spending by child age, household income and region of the country. As a result, estimates of how much a baby will cost in the first few years of life vary widely depending on parents’ income.
Cost of Having a Child in Canada
The cost of raising a child in Canada is partially offset by the Canadian child benefit, which provides eligible children under six years of age with $6,639 per year ($5,53.25 per month) and $5,602 per year (or $46,683 per month for eligible children between 6 and 17 years of age). Still, the government created this benefit for low-income families. Although it is difficult to figure the average cost of the first year of parenting in Canada, Greedyrate conducted an in-depth study that looked at the Canadians’ “spend habits over the past decade (2010-2020). For parents living in the urban south, the average amount spent on child-rearing in this region is approximately the national average cost of raising a child.
The Universal Child Care Benefit (UCCB) is designed to help cover the cost of childcare, but if your child does not need daycare, you can still get it.
To reduce the cost of breastfeeding, you can buy prescriptions, use cloth diapers and look for handmade clothing, toys and other items. If a parent works full-time, daycare can be a significant burden – cost can vary from $700 to $1,100 per month for each child – depending on the province or city. Remember that this is a detailed list of the things a baby needs and how much they will set you back in the US Dollars, especially for American parents who return to work after paying for nannying or daycare for most of the first year. Remember, too, that this site is for American citizens, so those of us in Canada who had the luxury of maternity leave this year will not have to pay for childcare until the baby is 12 months old, so that the cost will be slightly different.
Make sure you keep receipts for childcare expenses such as nursery, school, nanny, and daycare. BabySense.ca calculates that the cost of accommodating a child, including equipment and household operations, is $2,720 per year or $22,667 per month. The cost of enrolling the new baby in a health plan, childcare, clothing and accessories, depending on the family’s needs, is easy to see how $17,000 could be spent. The projected total cost of a baby in the first year for a baby breastfed, who does not use childcare in the first year, and who contributed the entire $2,500 to his RESP for postsecondary education is $8,000.
Based on your situation, you can use your interactive baby cost calculator to determine how much you would likely spend in your first year of the baby. New parents should also examine Canada’s Child Tax Benefit (CTCB) aimed at low- and middle-income families. The CCCTB is based on your adjusted net after-tax family income each year, so use this calculator to determine what you get.
Van de Geyn is a freelance writer who used to work for Today’s Parent magazine on a new guide for parents called Babies: The Real Story of How Much A Baby Costs, which he has written for CPA Canada, the Association of National Chartered Accountants. Read on to find out what to expect in your child’s first year and how to start saving for your child. The higher the cost of childcare, the higher the cost of leaving behind one partner’s income to commit to full-time education, and the higher the conditions for lost income from benefits and investments.
Because the cost of childcare is so high, it makes sense for a parent to stay at home for longer. The highest average cost of childcare was $38 for millennial mothers and $20 for millennial fathers who stayed at home. If both parents work during the birth of a baby, “If you have a baby and one of you takes the least time off, your income goes up while your costs go down,” says Alan Fields, co-author of Baby Bargains.
If you buy a set of cloth diapers, wash them yourself and buy cloth diapers, you can resell them for 50-70% of their value at a total cost of $550 once your child is educated. Clothing is cheaper in the US than the average cost of baby clothes, so this is a proper estimate, but Canadian clothing is an area where parents can save by using handbags or purchasing second-hand items at stores or online. Use this list of the best ways you can generally spend money to maintain low or high costs for your baby’s first year of life, and be prepared to look for ways to save more.