Parental pressure-cooker: Family budgets overheating as parents grapple with high costs and now face holiday season expenses - RBC poll

Executive Summary

• RBC’s latest Family Finances Poll reveals that a majority of Canadian parents feel their household budgets are extremely tight, with 72% surprised by rising child‑related expenses and 66% worried about covering family costs.
• Significant portions of respondents have already taken financial actions: 41% dipped into savings or emergency funds and 33% incurred debt to meet family expenses.
• The poll highlights heightened stress during the holiday season, especially for single‑parent households, and underscores a broad concern (94%) that child‑related costs will continue to rise in the coming year.

Key Details

• Survey Scope: Conducted July 9–15 2025; 1,514 Canadian parents with children aged 0‑17; margin of error ±2.5 pp at 95% confidence.
• Top Findings – “Agree” Responses (National Average):
• 72% surprised by increase in child‑related expenses over the past year.
• 60% say their household budget has never been stretched so thin.
• 56% report budgets too tight to afford what they want for their children.
• 45% feel pressured to buy more for their children than they can afford.
• 52% have never been so stressed about covering child‑related costs.
• Top Findings – “Concerned” Responses (National Average):
• 66% concerned about not being able to cover family costs.
• 94% worried that costs will rise even higher next year.
• Cost Drivers Identified:
• Everyday basics (food, clothing) cited by 85% as the cost that increased most.
• Extra‑curricular activities (sports, arts, camps) noted by 60%.
• Financial Coping Actions (National Average):
• 53% delayed or canceled major purchases.
• 46% scaled back or delayed long‑term investments.
• 41% dipped into savings or emergency funds.
• 33% taken on debt.
• 30% taken extra work or another job.
• Regional Variations: Slightly higher pressure in the Atlantic provinces (e.g., 79% in SK/MB would sacrifice their own financial future) and lower concern in Quebec for some metrics, but overall trends are consistent nationwide.
• Quote from RBC Senior Manager Dawn Tam: Emphasizes the importance of financial planning conversations to manage holiday spending and long‑term budgeting pressures, especially for single‑parent households.

Notable Quotes

“Trying to balance needs versus wants for your children can be even more challenging during the holiday season… a conversation about your finances with an advisor can help you explore options for managing the trade‑offs, so holiday spending doesn’t get out of hand.” – Dawn Tam, Senior Manager, Regional Financial Planning Consultant, RBC Financial Planning.

“Parents often underestimate how much extras add up over the year… smaller costs can quickly reach hundreds of dollars, while bigger expenses can run up into thousands.” – Dawn Tam.