“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,” said Dawn Tam, BC-based senior manager, regional financial planning consultant at RBC Financial Planning.
As parents juggle rising basics such as food and clothing and higher prices for extracurriculars, 60% reported their household budget has never been stretched so thin, and 52% said they have never been so stressed about covering child-related expenses.
Nearly all respondents (94%) are concerned these costs would climb higher in the new year.
Impact on housing and debt decisions
The squeeze extended beyond kids’ activities into broader household balance sheets. Two-thirds (67%) of parents said they have, or would, sacrifice their own financial future to spend what they could on their children today, while 41% reported dipping into savings or emergency funds and one-third (33%) has taken on debt to cover family costs.
Those patterns arrived as Canadians face heavier borrowing loads elsewhere. Equifax data showing total consumer debt reached $2.54 trillion at the end of 2024, with average non-mortgage debt of $21,931 per consumer.