Financial pressures shaping family size, timing, and long-term support for children
Young Canadians are embracing the DINK lifestyle – double income, no kids – and the cost of living is playing a key role in this decision.
The latest reading of the BMO Real Financial Progress Index shows that while seven-in-ten Gen Z (70%) and Millennials (69%) want children, many fear parenthood would compromise their financial security, while 53% say it has already done so.
The survey highlights how today’s economic pressures are influencing decisions around family size and timing.
Financial stability tops the list of considerations for would-be parents (44%), ahead of finding the right partner (34%), being fully present for children (27%), mental and physical health (24%), and career prospects (17%). More than a third (35%) say they would reconsider not having children if the financial impact were less severe.
On average, aspiring parents hope for two children, but if money were no object, that rises to three.
However, the emotional and financial demands remain daunting with 89% finding the balancing act challenging, and 55% regularly feeling overwhelmed by family expenses, especially among Gen Z and Millennials (72% each).
“For many Canadians, starting and raising a family is one of life’s most meaningful journeys, but it can also bring significant financial and emotional pressures,” said Gayle Ramsay, head of Everyday Banking, Segment & Customer Growth at BMO. She urges families to create financial plans that reflect their values and goals, noting that working with an advisor can help them “stay on track and focus on what matters most – spending more time together and making real financial progress.”
According to BMO, 84% feel the costs of raising children have become unmanageable. Unexpected expenses range from groceries (39%) and sports (37%) to daycare (31%) and housing (30%).
Despite these hurdles, many parents plan to support their children well into adulthood, with some believing this support should last “for as long as the parents are alive.”
While younger Canadians are delaying parenthood, at the other end of the journey many parents and grandparents recently revealed how they have delayed their retirement in order to help their adult children financially.
