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If we look at the average prices in Canada, then it’s expected that a baby can cost you anywhere from $10,000 to $15,000 per year until your child turns 18. These costs can rise every year as well with inflation and the rising cost of living. Let’s look at the breakdown of these costs and where they come from.
The Cost of Giving Birth in Canada
How much it costs to have a child born in Canada really depends on a few factors. Are you a Canadian resident or a Canadian citizen? Do you have insurance? Are you a visitor to Canada? What’s included in your birth plan? All of these things affect how much it will cost you.
The Cost if You’re A Canadian Citizen
If you’re Canadian citizens or permanent residents, healthcare is covered by the publicly-funded healthcare system. This means giving birth will likely cost you nothing. There may be an odd charge for some procedures. Still, most are covered by the Canadian healthcare system whether you have private health insurance, are part of a universal health insurance program, or have no coverage at all. The cost of childbirth becomes expensive when you give birth in Canada but aren’t a Canadian citizen.
The Cost of a Visitor to Canada Without Insurance
You may not know this, but only some countries have the accommodations for birth that you might expect. For this reason, some people choose to travel to another country to give birth. This practice is called birth tourism and requires you to have a temporary resident visa. How much this cost depends on your needs.
As a visitor (nonresident) to Canada without international health insurance, you could be looking at a cost of $5,000 to $8,000 for a natural birth. A c-section can have a total cost of anywhere from $10,000 to $12,000, and the cost of a midwife is around $2,500.
Relatively speaking, this is less expensive than in other countries like the US and is based on the type of medical care that you need.
The Cost of a Visitor to Canada With Insurance
If you have medical insurance as a non-resident, how much of your birth is covered is based on the type of private international health insurance that you have. It can cover anywhere from a portion of your care up to the whole thing, costing you nothing. Before you give birth, though, it’s important that you look into your insurance and find out how much it could cost you. That way, you can be prepared and not incur any unexpected additional expenses.
Cheapest Hospitals in Canada to Give Birth
If you’re a Canadian citizen, it will cost you the same at any Canadian hospital. If you’re paying, the cost will vary based on where you live, but there isn’t a notable difference. The general cost ranges between $5,000 and $12,000 for medical expenses, but it’s the type of procedure that dictates the cost, not the hospital.
The Cost of Fertility Treatments in Canada
In Canada, one of the major costs attributed to having a baby is the cost of fertility treatments. This can be expensive even if you’re a Canadian citizens. While not everyone chooses to get fertility treatment, those who do expect a large cost.
IVF treatments, also referred to as in-vitro fertilization and intracytoplasmic sperm injection, cost an average of $10,000 to $15,000. In some cases, it can even go as high as $20,000. It all depends on your individual situation and how many rounds of IVF you go through. This doesn’t even include the cost of donor eggs if there is a cost.
It’s important to keep in mind that the cost of $10,000 to $15,000 is only one round of in vitro. It also includes tests and consultation fees. If you need more than one round, then the costs will just keep soaring.
Unlike other forms of care, there is no medical coverage that will pay for fertility treatment in Canada. There may be some tax benefits that you can claim, but the cost has to come directly out of your pocket.
The Cost of a Baby in the First Month
When your baby first comes home, there are a few things that you’re going to need. These things are:
- A car seat
- Crib
- Stroller
- Diapers
- Bottles
- Baby monitors
You may also need formulas, and unfortunately, these things don’t come cheap. For the first month, it’s estimated that most parents spend around $1,000 in gathering the essentials. This doesn’t even include any ongoing costs. You also need clothes and blankets, and there are plenty of other expenses that go along with having a child.
The Cost of A Baby in the First Year
In the first year of life for a baby, the overall costs vary. They can range anywhere from $6,000 to $13,000 depending on your lifestyle, if you formula feed, and other different factors. This can be difficult to afford, especially when you’re on maternity leave and get Ei maternity benefits and experience an income loss. Maternity and paternity benefits only pay up to 50% of your average income.
The best way to prepare for these costs is to make a budget and do your research. While baby items can be expensive, they are easy to mitigate the costs. One way new parents do this is with used items. This is a great way to save money and reuse items since babies grow out of everything so quickly.
How Much You Should Budget for a Baby
How much do you need for your child? It really just depends on your lifestyle. There are plenty of costs associated with babies, but the average cost in the first year is around $13,000. While that number sounds like a lot, that money doesn’t have to be provided. If you break it down, it’s just over $1,000 per month, which seems a lot more affordable.
That said, your baby budget should be based on your needs and expenses. Only some things have to be brand new, and you can use coupons and sales to save money on other necessities. The best way to stick to your budget and get ready for a baby is to be prepared. Do your research before you make any purchases, and pay attention to prices. It may cost less than you think.
The Costs Related to Raising a Child
When you have a child, you need to think about not only the costs related to having a baby but also those throughout the child's life. While you can get some financial help in the form of the Canada Child Benefit and/or the Child Disability Benefit, often, it doesn’t cover all of the costs. In order to get the CCB, you do have to register. While you can't register the child automatically, you can do it when you fill out the child’s birth certificate, making it much more manageable.
Clothing
The cost of clothing for children can be quite expensive based on the rate at which they grow. It’s estimated to cost Canadian parents upwards of $900 per year per child. This is just one of the many costs of caring for a child, though.
Figuring out the exact cost of clothing for a child is a little more complicated. It all depends on your preference, where you shop if you use second-hand clothing, and how fast they grow. It really varies depending on the child.
Food
With the current rising cost of living, food is more expensive than ever. It’s around $1,000 per year for an infant, and these costs increase every year. Since grocery prices are now higher than ever, parents are feeling the pinch more than ever before.
In order to cut the cost of food, planning is ideal. Buying food when it’s on sale and stocking up, purchasing in bulk, price matching and using coupons are all ways you can stay on top of your monthly budget. Meal planning also helps. Having a list of meals and ingredients you need for the week will help you stick to your budget.
Child Care
Another large cost you have to factor in when having a child is child care. Childcare costs range in price, but the average cost for full-time care in Canada is $31 a day or $650 per day, which you have to pay out of pocket. In some cases, provinces offer financial assistance based on your annual income, but it can still end up costing you money. This is a lot of money if you have one child, but if you have more than one, these costs can take up a considerable amount of your monthly budget. That’s not even including any other extracurricular activities they might be registered for.
Planning For Expenses
When you’re preparing your finances for future expenses related to expanding your family, it may help to speak to a financial advisor. They provide financial assistance in regards to creating functional financial plans and can help you prepare for different expenses like:
- Post-secondary education (whether you need financial aid)
- Organizing outstanding debts
Financial planners can also help with things like creating a plan to live off of parental leave benefits since parental benefits significantly reduce your income. You can create tax-free savings accounts that allow you to pay for future expenses such as extracurricular activities and school supplies. Whether you decide to send your child to public school or private school, a financial planner can help you discover what you need in regards to funds.
Final Thoughts
Having a child in Canada is expensive. While the cost of medical expenses related to childbirth ranges from completely free to a few hundred dollars if you have Canadian citizenship, it’s the costs that come after that add up. In the first year of a child’s life, they can cost upwards of $13,000, and that’s just the first year.
From there, they’re said to cost $10,000 to $15,000 per year, if not more. There are plenty of one-time expenses as well as ongoing expenses related to raising a child. In reality, many children can cost parents over $350,000 over their lifetime, depending on their lifestyle and such. There are also those unexpected costs to consider, like medical treatments, dental care and even braces or other orthodontic care.
Unfortunately, there’s no set amount you can put on it because each child is different, but starting some savings is always a good idea.
