Average cost of raising a child in Canada

TORONTO – The average cost of raising a child born in 2010 is US$226,920, according to data released Friday by the U.S. Department of Agriculture.

With projected inflations costs factored in, that figure jumps to US$286,860.

In Canada, the figure is slightly lower, according to Tom Drake, an Edmonton-based financial analyst and the owner and head writer for Canadian Finance blog.

According to data by Manitoba Agriculture, Drake estimates the average expenses related to raising a child to 19-years-old is CAD$191,665.

Increased health care expenses in the U.S. could explain the difference, Drake suggests.

“The U.S. Department of Agriculture also shows an additional $10,000 in food expense throughout childhood, an interesting statistic since the U.S. also has a higher obesity rate than Canada,” he says.

According to Drake’s calculations, the bottom line of an average Canadian family will be greatest hit by child care costs associated with raising a child in the first 12 years.

Accommodation costs like furnishings and other household operations is the next greatest expense, followed by food expenses.

“Interestingly, the data I've looked at shows boys eating more groceries, but only $500 total throughout their childhood,” Drake says about the cost difference between raising boys and girls.

According to the U.S. report, Expenditures on Children by Families, families raising more than one child spent less compared to single-child households.

The same ”˜bulk discount’ principle holds true in Canada.

“There are many expenses that can be reduced when you have more than one child, especially if they're the same sex. Everything from furniture to clothing can be handed down,” Drake says.

“The more children you have, the more likely you'd benefit by having a parent stay home to avoid paying more in daycare.”

For an estimate on how much it will cost you to raise a child, try the USDA’s child cost calculator.

Canadian families should also take advantage of various benefits and tax credits available federally and provincially.

“For each child, you'll receive $100 a month for the first six years under the Universal Child Care Benefit,” Drake says.

“Along with that payment, you'll also get the Canada Child Tax Benefit, which is calculated based on family income. Come tax time, parents might be eligible to claim the Children’s Fitness Tax Credit, Public Transit Pass Tax Credit and other childcare expenses like daycare and summer camp.”

Below is Drake’s chart of estimated costs involved with raising a child in Canada. The figures were compiled from Manitoba Agriculture data and adjusted to reflect inflation in 2011.