Time for another annual kiddo spending update!\u00a0For those new here, you can see all our parenting related posts here<\/a>.<\/p>\n Pull up any article on Google about the costs of raising a kid and they will tell you to get ready to spend anywhere from $10,000-$15,000 per year. \u00a0MoneySense released an article this August with updated 2023 figures to raise a child in Canada<\/a> and they calculated an average annual cost of $16,900 CAD\/year or $321,020 CAD as the total cost from birth to 18 to raise a child in Canada. \u00a0And this figure does NOT include any university spending or investing within an RESP to help offset post-secondary costs.<\/p>\n We\u2019re here to dispel this myth that kids MUST be expensive.\u00a0 Really, kids can be as expensive as you choose.<\/p>\n A caveat:\u00a0We live in Canada where healthcare costs for residents are $0 thanks to our healthcare system.\u00a0 This includes doctor visits, shots\/vaccines, trips to the urgent care\/hospital, surgeries, eye exams, first pair of glasses for kids, etc.<\/p>\n This coverage does not include things such as elective procedures, physiotherapy, massage, chiro, occupational therapy, dental, prescriptions, etc. There is supplemental coverage options available for these categories but we have elected not to purchase this additional coverage.<\/p>\n Drum roll pleaseeeeeee<\/p>\n We spent a total of $825 during our little guy\u2019s second year.\u00a0 That comes out to $69 per month.\u00a0<\/strong>During our daughter\u2019s second year, we spent $1,416, so $591 less even though the cost of things has gone up significantly in 3 years time thanks to inflation. \u00a0This is an example of how the second kiddo likely will cost less than your first.<\/p>\n Not as bad as what a Google search will show you eh?\u00a0 Of course, this is just our personal experience but again we\u2019re here to dispel the myth that babies HAVE to be expensive.<\/p>\n We also contributed $2,500 towards his RESP education fund to get the full 20% match ($500) from the government so a total of $3,000 was invested into his future education.\u00a0 If that annual investment of $3,000 grows at an average annual rate of 7% for 18 years, he will have ~$104,000 to put towards his education. \u00a0Rather than do this for 18 years, we plan to keep this up for 15 years to get the max lifetime grant of $7,200 from the government.\u00a0 Assuming we stop contributing into their RESPs after age 15, at an average annual growth of 7% he will have ~$95,000 in his RESP by the time he\u2019s 18 to account for his post-secondary education. \u00a0(For those curious, we will still contribute $2,500\/year\/kid into their investments but will shift from their RESP to their Informal Trust account instead since we’ve maxed out the government grants in their RESP after age 15.)<\/p>\n In Canada, this should be more than enough.\u00a0 And if not, I see nothing wrong with him taking out student loans for the remainder (my $65,000 USD student loans were what kick started me on my interest in personal finance).\u00a0 If he decides to go another route, this money is earmarked for him to use for whatever \u2013 be it to travel around the world, take some online courses\/certificates, go into the trades, go into the military, start his own business, use as a downpayment for a house, etc.<\/p>\n We haven\u2019t separated how much we spent on his food compared to our overall food spending but during his second year it was likely around $50\/month for a total of $600\/year.<\/p>\n So if we also include the $2,500 RESP contribution and $600 in food, we\u2019re looking at a total of $3,925 total out of pocket for his first year.\u00a0 Of course, the RESP is elective and we recognize our privilege of being able to contribute this $2,500 towards his education each year.<\/p>\n There you have it!<\/p>\n We recognize our privilege of having both parents at home to avoid any sort of day care costs. \u00a0This is another example of how being aggressive in your FI pursuits at a young age has benefits down the road to help keep your post-FIRE costs down. \u00a0After he turns 3 we will likely enrol him in 1 day\/week of pre-school that will cost $0.<\/p>\n Those with parents, are you as crazy as us and keep track of your baby-related expenses?\u00a0 Would you say you spent more or less than $825 on kiddo-related expenses (excluding education and food) during their second year? How have your child-related costs changed compared to their first few years?<\/p>\n Those without kids yet but considering it in the future, if you\u2019re reading this blog you likely are not part of the herd mentality and hopefully you too can stay well under the average of $10,000-$15,000\/year.\u00a0 Any questions for us?\u00a0 Happy to help!<\/p>\n If you liked this article and want more content like this, please support this blog by sharing it.\u00a0 Not only does it help spread the FIRE, but it lets me know what content you find beneficial.\u00a0 Writing is NOT my strong suit and it honestly takes me hours to write each post so the more encouragement the better!\u00a0 Engaging in the comments below keeps me motivated.\u00a0 You can also support this blog by subscribing to receive emails anytime a new post is published.\u00a0 Thank you FImily!<\/p>\n We believe in stacking up life hacks to keep your enjoyment levels to the max without depleting your bank account.\u00a0 Here are some ways to further educate yourself and save thousands of dollars over your lifetime by making some simple adjustments:<\/p>\n Time for another annual kiddo spending update!\u00a0For those new here, you can see all our parenting related posts here. Pull up any article on Google …<\/p>\nThe Breakdown:<\/h2>\n
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How Much Did We Spend?<\/h2>\n
RESP Contributions<\/h2>\n
Food Costs<\/h2>\n
Adding It All Up<\/h2>\n
Support This Blog<\/h2>\n
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