Raising a child in Canada costs much less than what is conventionally thought, according to a study released August 22 by the Fraser Institute.
The Vancouver think tank calculated the annual cost of raising a child in Canada at between $3,000 and $4,500 depending on the age of the child.
Parents spend more than that depending on their income, parenting style, level of economic security, marital status and other financial obligations, according to the study written by Fraser Institute senior fellow and economics professor at Nipissing University Christopher Sarlo.
Sarlo noted that this is much less than popular estimates that raising a child costs about $10,000 or more per year.
His report notes that the attempt to measure the cost of raising children is laden with political implications stemming from vested interests that seek to increase entitlement programs for parents.
“The social welfare community, a broad coalition of public service workers, social activists, academics and many journalists actively lobby the state for more resources for families with children,” he said.
“Their job becomes easier if the public believes that raising children is an expensive proposition beyond many people’s means.”
Sarlo’s cost estimates focus on what he calls “marginal” costs that parents spend when they add a child to their household. These costs specifically exclude any costs that were already in place prior to the child and would still be in place if a child leaves the household.
As a result, added real estate costs to provide for a child’s bedroom are not included in his assessment.
