1. 72% of parents surprised by rising child-related costs. 2. 66% worry about covering family expenses amid budget constraints. 3. 60% report their budgets are the tightest ever. 4. 56% find costs too high for desired children's needs. 5. 94% expect costs to continue rising in the new year.
FAQ
Why Very Bearish?
Rising financial stress among families may impact RBC's banking products usage negatively, reminiscent of 2008 downturn.
How important is it?
Significant concern about family finances may deter consumer spending and increase loan defaults, affecting RBC's performance.
Why Short Term?
Immediate effects anticipated as consumer confidence declines, affecting bank revenues and loan growth.
- 72% surprised by 2025 rise in child-related expenses
- 66% worried about not being able to cover costs for their family
- 60% reported their household budget has never been stretched so thin
- 56% added that their budget is too tight to afford what they want for their children
TORONTO, Dec. 9, 2025 /CNW/ - Financial struggles due to the high cost of living are adding stress to the already challenging job of being a parent, according to the RBC Family Finances Poll: Parenting Edition, which surveyed parents of children up to the age of 17 about their day-to-day expenses earlier this year.
The poll found that, while over half (56%) reported their budget is too tight to afford what they want for their children, almost half (45%) felt pressured to buy more for their children than they can afford. This can place parents in a particularly uncomfortable position at this time of the year.
"Trying to balance needs versus wants for your children can be even more challenging during the holiday season, especially when you're finding it difficult to cover everyday costs throughout the year," explained Dawn Tam, B.C.-based Senior Manager, Regional Financial Planning Consultant, RBC Financial Planning. "This is when a conversation about your finances with an advisor can help you explore options for managing the trade-offs, so holiday spending doesn't get out of hand."
Good financial advice can also help ease concerns that go well beyond seasonal expenses. As the RBC poll revealed, it's ongoing costs related to raising their children that parents are finding the most worrisome.
- 72% were caught by surprise by how much these costs had increased over the past year
- 60% reported their household budget has never been stretched so thin
- 52% admitted they had never been so stressed about covering these expenses
- And the vast majority (94%) is concerned about these costs rising even higher in the new year.
Then there are the annual 'extras' that aren't always included in family budgets: school supplies and field trips; extracurricular sports, music, dance, arts and crafts and art activities; as well as March Break and summer camps.
"Parents often underestimate how much extras add up over the year, which can bring some unexpected pressure on family finances. Smaller costs can quickly reach hundreds of dollars, while bigger expenses can run up into thousands," noted Tam. "As a parent of young children myself, I understand the desire to give a child every advantage possible in life. The red flag we raise here when advising our clients is to make sure the choices they're making won't cripple their current – or future – finances."
The RBC poll findings underline this is a real possibility. Two-thirds (67%) of respondents stated they have, or would, sacrifice their own financial future to spend what they can on their children today. Also, 41% have dipped into their savings or emergency fund and 33% have taken on debt to cover family costs.
Tam added that the financial challenges parents are facing right now are even more difficult for anyone raising children on their own.
"Trying to manage today's high costs in a single income household can be so much more challenging – let alone trying to save for the future they're hoping to achieve, for themselves and their children," said Tam. "The good news is we can often help single parents as well as couples uncover hidden opportunities to stretch their budgets further and make the most of their cash flow."
To find out how to put your kids first without putting yourself last, please visit rbcfinancialplanning.com. There are also other tips and resources available on RBC's My Money Matters online advice hub which parents might find particularly helpful, including the articles below:
- The Surprising Costs of Parenthood!
- Mastering Money: Tips For Creating a Budget That Works For You
- Stressed About Money? Here's Why Talking About It Helps
- Struggling to make things ends meet
- 5 Steps for Managing Expenses During Financial Hardship
- Need money in an emergency
Fast Facts: 2025 RBC Family Finances Poll – Parenting Edition
Selected Findings – National & Regional
"AGREE" RESPONSES | CAN | BC | AB | SK / MB | ON | QC | AC |
Surprised by how much child-related expenses have gone up in last year | 72 % | 74 % | 72 % | 72 % | 73 % | 67 % | 74 % |
Household budget has never been stretched so thin | 60 % | 61 % | 69 % | 65 % | 62 % | 51 % | 55 % |
Finances are stretched too thin to afford what I want for my child(ren) | 56 % | 61 % | 66 % | 62 % | 58 % | 43 % | 57 % |
Felt pressured to buy more for my child(ren) than I can afford | 45 % | 50 % | 47 % | 44 % | 45 % | 38 % | 49 % |
Never been so stressed about covering child-related costs | 52 % | 55 % | 61 % | 52 % | 55 % | 40 % | 49 % |
Have or would sacrifice my own financial future to spend what I can on my child(ren) today | 67 % | 68 % | 71 % | 79 % | 66 % | 62 % | 69 % |
As a parent, I'm constantly struggling to make ends meet | 43 % | 45 % | 44 % | 40 % | 41 % | 48 % | 43 % |
Struggling to keep up with child-related costs | 47 % | 55 % | 51 % | 46 % | 50 % | 38 % | 47 % |
"CONCERNED" RESPONSES | CAN | BC | AB | SK / MB | ON | QC | AC |
Concerned about not being able to cover costs for my family | 66 % | 69 % | 68 % | 71 % | 66 % | 62 % | 65 % |
Concerned about costs rising even higher next year | 94 % | 91 % | 95 % | 97 % | 95 % | 94 % | 95 % |
COSTS THAT INCREASED MOST OVER LAST YEAR | CAN | BC | AB | SK / MB | ON | QC | AC |
Everyday basics (e.g., food, clothing) | 85 % | 84 % | 85 % | 92 % | 85 % | 85 % | 83 % |
Extra-curricular activities (e.g., sports, arts, crafts, camps) | 60 % | 62 % | 61 % | 67 % | 61 % | 55 % | 59 % |
ACTIONS TO KEEP UP WITH COSTS OF CHILD-REARING | CAN | BC | AB | SK / MB | ON | QC | AC |
Delayed or canceled major purchases | 53 % | 53 % | 52 % | 59 % | 56 % | 48 % | 42 % |
Scaled back or delayed long-term investments | 46 % | 52 % | 51 % | 59 % | 49 % | 33 % | 43 % |
Dipped into savings or emergency fund | 41 % | 48 % | 49 % | 45 % | 40 % | 32 % | 43 % |
Taken on debt | 33 % | 37 % | 39 % | 38 % | 35 % | 22 % | 38 % |
Taken on extra work or another job | 30 % | 36 % | 28 % | 33 % | 28 % | 30 % | 24 % |
About the RBC Family Finances Poll: Parenting Edition
These are the findings of a national survey commissioned by RBC and conducted from July 9 to 15, 2025, among n=1,514 Canadian parents with at least one child between the ages of 0-17 and who are members of the Angus Reid Forum. For comparison purposes only, a probability sample of this size would yield a margin or error of ±2.5 percentage points at a 95% confidence level.
Disclaimers
RBC Financial Planning is a business name used by Royal Mutual Funds Inc. (RMFI). Financial planning services and investment advice are provided by RMFI. RMFI, RBC Global Asset Management Inc., Royal Bank of Canada, Royal Trust Corporation of Canada and The Royal Trust Company are separate corporate entities which are affiliated. RMFI is licensed as a financial services firm in the province of Quebec.
This is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. The information presented is believed to be factual and up to date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.
About RBC
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Media contact:
Kathy Bevan, RBC Corporate Communications, 647-618-2287
SOURCE RBC Royal Bank
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