May 4, 2026
Starting a family is becoming as much a financial decision as a personal one — and many Canadians aren't fully confident they're ready.
New research from Embark finds more than half (54%) of expecting parents say they feel only somewhat financially prepared to have a child, highlighting a significant gap between planning and confidence.
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"What we're seeing is that families aren't waiting. They're taking action early, and RESPs are becoming one of the most common ways they're doing it," said Andrew Lo, CEO at Embark.
Costs are adding up early
For many new and expectant parents, the financial pressure builds quickly.
Among new parents, 37% report spending between $500 and $999 per month on their child, while another 26% spend under $500 — a range that reflects how early costs can vary, but nonetheless add up fast.
At the same time, certain priorities are shifting. For example, when asked how they would use an extra $2,500, more parents said they would save the money (22%) or pay down debt (20%) than spend it on immediate needs like baby essentials (13%) or housing (11%).
That suggests many are trying to balance immediate expenses with longer-term financial stability from the outset.
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Family support is key for many
Support from family remains an important factor for millennial parents.
More than one in three new parents (36%) say they've received financial help, including 21% who received a one-time contribution and 16% who receive ongoing support.
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Access to that support, however, isn't consistent. According to Embark's survey, in British Columbia a majority of parents report not receiving financial help from family, underscoring how uneven those familial resources can be.
Long-term planning is a priority — but confidence is mixed
Despite the pressure, many parents are still focused on future costs, particularly education.
According to Embark, nearly three-quarters (73%) say they have opened a Registered Education Savings Plan (RESP), and 74% are aware of government matching programs that can help grow those savings.
At the same time, overall financial confidence remains strained. Only 33% say they believe they will be able to fully pay for their child's post-secondary education, while 27% say they won't be able to, and 26% expect it will be financially tight.
Financial pressure is shaping behaviour
The findings point to a broader shift in how younger families approach money management.
Financial concerns rank among the top challenges for new and expecting parents, second only to sleep-related issues — and in many cases, those concerns are already influencing decision-making.
When asked to choose between receiving $5,000 or a week of uninterrupted sleep, 84% of new parents chose the money — a signal of how central financial considerations have become, even in the earliest stages of parenthood.
For many families, the approach is practical: manage immediate costs, plan for future expenses, and adjust expectations along the way.
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Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and US brands, while also working as a ghostwriter for financial influencers.
