A recent survey of new and expecting parents in Canada highlights a “polarized reality” between those who are financially prepared for growing their families and those who aren’t.
The survey of 579 Canadians, conducted by RESP promoter Embark in March, shows that among expecting parents, 78% feel financially prepared overall to bring kids into the picture. Among these respondents, 54% said they felt somewhat prepared and 25% said they felt very prepared. Another 18% said they felt somewhat unprepared, while 3% said they didn’t feel prepared at all.
In a regional breakdown, parents in Saskatchewan and Manitoba reported the highest level of financial preparedness (94%). On the other hand, parents in Ontario reported the lowest level of preparedness (67%).
Meanwhile, more women reported feeling very financially prepared (29%) than men (19%). But more men said they felt somewhat prepared (62%) than women (47%).
When asked what they would do if they were given $2,500 tomorrow, most new and expecting parents appeared to prioritize financial security over immediate spending.
About 22% of respondents said they would save that money generally, 20% said they would pay down debt, 18% said they would save the money for their children’s higher education through an RESP, 13% said they would put the funds in their emergency savings pool, and 13% said they would set the funds aside for baby essentials.
Another 11% said they would put the $2,500 toward household expenses, and 4% said they would spend it on baby essentials immediately.
The data also showed a clear divide between new and existing parents who have built savings for their children’s future and those who haven’t started saving at all.
About 36% said they had saved $5,000 or more for their children’s future, which was nearly as many as those who said they hadn’t started saving at all (32%). Another 11% said they saved between $2,500 and $4,999, 14% said they’d saved between $500 and $2,499, and 7% said they’d saved less than $500.
Also, only 33% said they felt fully confident they could cover education costs, “leaving the majority anticipating financial strain or uncertainty,” the report said.
Monthly costs among new and existing parents were found to be substantial, with the majority of respondents (63%) reporting spending in the $500–$1,000 range on child-related expenses.
Amid these financial pressures, the survey found that 64% of new and existing parents have received no financial support from their family, while 16% said they receive ongoing family help. In addition, 64% said they received one-time support from their families.
Asked if they would take $5,000 or one week of uninterrupted sleep, a whopping 84% of respondents said they would pick the money over the sleep, despite the exhaustion that comes with early parenthood, the report noted.
The survey of 579 Canadians was conducted in English and French between March 10 and 15. It involved members of the Angus Reid Forum who are either parents or expecting parents between the ages of 18 and 50. Ninety per cent of respondents were between the ages of 30 and 45.
A sample of this size would carry a margin of error of plus or minus four percentage points, 19 times out of 20.