Sleepless nights, costly decisions: How parenting stress impacts family finances

Raising kids is rewarding, but also exhausting in ways that go well beyond the bedtime routine. According to a recent survey, 79% of parents with young children are regularly woken up during the night, and 41% report being chronically sleep deprived, getting six hours of sleep or less.

Sleep loss doesn’t just take a toll on emotional and physical health. It can also cloud judgment and derail financial planning. More than one in three overtired parents admitted to regretting financial decisions made while running on empty.

When it comes to long-term goals such as saving for post-secondary education, that stress is showing up in clear ways. Asked about barriers to opening a Registered Education Savings Plan (RESP):

  • 32% said they don’t have enough disposable income to start one
  • 27% worry their financial situation could change, making it hard to commit
  • 19% are concerned about meeting regular contribution expectations

The takeaway? Even well-intentioned parents can struggle to prioritize future planning when today's demands, and sleep disruptions, weigh so heavily. Understanding these challenges is the first step toward building better financial resilience, even during the most sleep-deprived seasons of parenting.

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Balancing parenting and finances

There’s a lot going on in the average parent’s life. The survey also found a little over two-thirds of parents believe it's difficult to find the time and energy to focus on both their family's current needs and long-term financial goals.

With the cost of education steadily increasing, 60% of parents worry they won't be able to afford the rising cost of education. Embark estimates that children born in 2024 are projected to pay 36% more compared to what people pay for post-secondary studies today.

Despite this, saving for their child's education is a top financial priority for 82% of parents, ranking higher than paying down debt (77%) or saving for retirement (72%).

Nearly two-thirds also say they spend a lot of time thinking about how they'll afford post-secondary education, and 70% wish they had more knowledge about saving and investing for it.

Survey methodology

The survey was conducted using the Leger Opinion online panel to survey 1,000 Canadian parents with children under the age of five between April 30 and May 6.

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Nicholas Sokic Contributor

Nicholas completed his master's in journalism and communications at Western University. Since then, he's worked as a reporter at the Financial Post, Healthing.ca, Sustainable Biz Canada and more. Aside from reporting, he also has experience in web production, social media management, photography and video production. His work can also be found in the Toronto Star, Yahoo Finance Canada, Electric Autonomy Canada and Exclaim among others.

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