Raising a child in Canada is a significant financial commitment, with the average cost reaching $16,900 per year or $320,000 by the time they turn 18¹. However, there are strategies parents can use to lessen some of these expenses. Here are some tips for different stages of your child’s development.

Infants and Pre-School Children

1. Invest in Your Child's Future with a RESP: Use your Canada Child Benefit to contribute to your child's Registered Education Savings Plan (RESP). Starting early allows the investments to grow over time, providing substantial support for their future education. Plus, you may receive government grants like the Canada Education Savings Grant and the Canada Learning Bond.
   
   
2. Use Free Resources: In Ontario, Early Years Centres offer free access to programs and resources to assist in your child’s development. Each Centre offers core programs and services and local services based on community interests and needs. Take advantage of toy libraries or free classes with your pre-schooler.
   
   
3. Consider Non-Traditional Childcare Options: Traditional childcare can be expensive if you don’t qualify or have access to either subsidized or $10/day childcare. Explore alternatives like coordinating schedules with other parents to share childcare duties or nanny sharing.
   
   
   

School-Aged Children

1. DIY Birthday Gifts: Reduce spending on birthday gifts by encouraging your children to make their own. Crafting cards or gifts like tie-dye tote bags, t-shirts, or personalized pillows can be fun and meaningful alternatives to store-bought presents.
   
   
2. Claim Childcare Costs on Taxes: Don’t forget to claim eligible childcare expenses, including costs for summer day camps, on your taxes. This can reduce your taxable income and save you money.
   
   
3. Organize or Participate in Swaps: If your school or neighborhood doesn't already have a swap event, consider starting one. Swapping clothes, books, toys, and sporting equipment with other parents can be a great way to save money and reduce waste.
   
   
4. Arrange Themed Playdates: Instead of formal lessons, schedule weekly playdates with a theme. Each parent can teach a different skill, like dancing, soccer, crafting or baking. This way children learn new activities while parents take turns teaching.
   
   

Teens

1. Save on Sporting Equipment: Teen sports can be costly, but you can save by trading in old equipment for discounts on new gear or buying used items from thrift stores. This not only saves money but also promotes sustainability.
   
   

2. Teach Financial Responsibility: Involve your teens in budgeting and saving. When shopping for clothes, have them list what they want and prioritize within a set budget. This will teach them valuable financial skills and help them control their spending. Encourage your teen to get a part-time job so that they can put their financial responsibility into practice by setting a budget, tracking their spending, and saving their own money.
   
   
3. Invest in Driving School: If your teen is keen on obtaining their driver’s license that will mean increased insurance costs. One way that can significantly decrease your costs is to invest in driving lessons from an accredited driving school. While this bears an upfront cost, it can reduce insurance premiums by 10% - 20% depending on your insurance provider.

By implementing these strategies, parents can manage and reduce the costs associated with raising children, making it a more affordable and enjoyable experience for the whole family. For assistance with budgeting, check out our Personal Budget Worksheet or contact your Alterna branch for an appointment to discuss your situation and how we can help you manage costs and save your money.