Survey finds most parents squeezed by rising child costs as festive bills loom and budgets buckle
As the holiday season nears, many Canadian parents are sounding the alarm on household finances pushed to breaking point.
A new RBC Royal Bank Family Finances Poll highlights just how much rising costs have blindsided families with children under 17 with 72% of parents surprised by how much child related expenses climbed this year. Six in 10 said their family budget has “never been stretched so thin,” while over half (56%) admit they simply can’t afford everything they’d like to provide for their kids.
Almost half say they feel pressured to spend beyond their means to avoid disappointing their children. And this dilemma becomes even more pronounced during the holidays. Beyond gifts and celebrations, the survey points to price hikes on school supplies, extracurricular activities and seasonal camps; costs that frequently go unaccounted for during initial budgeting.
Parents are increasingly making tough trade-offs to keep up. Two thirds indicated they have already, or would, put their own financial future at risk to meet present day needs for their children. That includes tapping into personal savings or emergency funds (41%) and taking on debt (33%).
The concern extends well past this holiday period. An overwhelming 94% worry expenses will climb even further next year, signalling a prolonged affordability crunch.
“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,” says Dawn Tam, RBC regional financial-planning consultant. She notes that a conversation about finances with an advisor can help ensure holiday spending doesn’t get out of hand.”
