Author Topic: Canadian Needing Help- Share your annual expenses?  (Read 559 times)

fireforfun

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Canadian Needing Help- Share your annual expenses?
« on: August 22, 2019, 08:41:50 AM »
Hello, I am soon to be a first time father in December and plan to have at least 2, maybe 3 kids so there are lots and lots of unknowns of upcoming expenses for our family to try to forecast out.

I read this forum a lot but its mostly US case studies. I was wondering if any other Canadians with families would be willing to share their current expenses so I could have a goal/ have a better idea of how much having a family will increase my expenses (which I currently track closely). Would like to reach FI in 5 years but its hard to know whether my expenses will be 30k or 60k in 5 years!

As any other Canadian on here will know, we definitely pay more on Cell phones/ Internet/ insurance/ Groceries / Gas/ Vehicle costs compared to our US counterparts so I find it hard to compare myself to the US expenses posted.

Thank you in advance.

snacky

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Re: Canadian Needing Help- Share your annual expenses?
« Reply #1 on: August 22, 2019, 08:47:56 AM »
Will you be using daycare? How much is daycare where you live? That's the largest kid expense and it varies by province.

For two kids and an adult on the prairies we pay $300/ month for food, on average. Housing depends on where you are. When my kids do activities they cost about $100 a month per activity. Birthday gifts for friends and clothes and all the little things like that add up to $50-100 per month. I do everything on the cheap and we don't do hockey or other expensive activities, so my numbers are probably on the low end of average.

daverobev

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Re: Canadian Needing Help- Share your annual expenses?
« Reply #2 on: August 22, 2019, 09:00:42 AM »
How long's a piece of string?

Childcare can be massive or nearly nothing depending on province, and can vary significantly within province. Children aren't intrinsically expensive, but buying a larger house is.

Phone/internet etc - massively dependent on where you live, but can be had cheaply in certain places.

IOW: Post a full case study. There are lots of Canadians on the forum.

fireforfun

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Re: Canadian Needing Help- Share your annual expenses?
« Reply #3 on: August 22, 2019, 09:02:08 AM »
Thank you @snacky. Yes we will be using daycare but I am able to get those numbers and have my housing numbers nailed down as we do not intend to move. Appreciate your help on groceries/ activities/ other kid expenses though as those are the ones I am big time guessing at.

jambongris

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Re: Canadian Needing Help- Share your annual expenses?
« Reply #4 on: August 22, 2019, 09:35:35 AM »
Family of 4 in Ontario here; kids are 3 and 6.

I stopped tracking our expenses a year ago for a variety of reasons but we were spending about $450/month on groceries ($350/month after PCOptimum points).

Diapers are a sizeable expense but you can save money with reusable diapers.

Extracurricular activities cost as much as you want them to cost. There are often free options if you look around. I would suggest trying to join local parent groups on social media.

Kids clothes are everywhere. I think the only ones we always buy new are socks because our kids wear through them in no time. Everything else is hand me downs, give-aways on our buy nothing group, gifts from grandparents, or bought from a consignment store. (Same goes for toys.)

Our local libraries have excellent collections in French and English so we rarely buy books.

snacky

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Re: Canadian Needing Help- Share your annual expenses?
« Reply #5 on: August 22, 2019, 09:54:16 AM »
Family of 4 in Ontario here; kids are 3 and 6.

I stopped tracking our expenses a year ago for a variety of reasons but we were spending about $450/month on groceries ($350/month after PCOptimum points).

Diapers are a sizeable expense but you can save money with reusable diapers.

Extracurricular activities cost as much as you want them to cost. There are often free options if you look around. I would suggest trying to join local parent groups on social media.

Kids clothes are everywhere. I think the only ones we always buy new are socks because our kids wear through them in no time. Everything else is hand me downs, give-aways on our buy nothing group, gifts from grandparents, or bought from a consignment store. (Same goes for toys.)

Our local libraries have excellent collections in French and English so we rarely buy books.

These things were true for me until my kids hit the preteen years. Then hand me downs dried up and finding good used stuff became hard. Also kids developed interests that weren't covered by the cheap/ free activities. The first decade costs in diapers and daycare. The second is school, transportation, activities, and clothes.

jambongris

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Re: Canadian Needing Help- Share your annual expenses?
« Reply #6 on: August 22, 2019, 10:30:49 AM »
Family of 4 in Ontario here; kids are 3 and 6.

I stopped tracking our expenses a year ago for a variety of reasons but we were spending about $450/month on groceries ($350/month after PCOptimum points).

Diapers are a sizeable expense but you can save money with reusable diapers.

Extracurricular activities cost as much as you want them to cost. There are often free options if you look around. I would suggest trying to join local parent groups on social media.

Kids clothes are everywhere. I think the only ones we always buy new are socks because our kids wear through them in no time. Everything else is hand me downs, give-aways on our buy nothing group, gifts from grandparents, or bought from a consignment store. (Same goes for toys.)

Our local libraries have excellent collections in French and English so we rarely buy books.

These things were true for me until my kids hit the preteen years. Then hand me downs dried up and finding good used stuff became hard. Also kids developed interests that weren't covered by the cheap/ free activities. The first decade costs in diapers and daycare. The second is school, transportation, activities, and clothes.

Good point.

In the back of my head Iíve been expecting that to happen. Even at 6 years old there are fewer hand me downs. Itís probably a function of how quickly kids grow. When theyíre younger they grow so fast that they donít have time to wear out clothes so the get passed on. By the time theyíre preteens they can wear their clothes for much longer.

Prairie Stash

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Re: Canadian Needing Help- Share your annual expenses?
« Reply #7 on: August 22, 2019, 03:58:05 PM »
2 kids, House is paid off. $30K for our baseline expenses.

The CCB pays me $6000/year, that covers the children's food, clothes and activities, it will be going up to $10k if I pursue early retirement. Assuming you make $100k/year you can expect $45-50k/child doled out between now and age 18. $100k is far from chump change, it offsets a lot of costs. You asked for expenses, but you haven't asked about extra income ;)

I pay $2500/kid for RESP for 10 years and that will cover their entire University, so between now and the time they turn 16 I need $50K (total) for the 2 of them to get full educations.

With mine, the diapers rang in at $1.50-2/day until potty training. After potty training its $0.25/day until you stop wearing backup night diapers. Food is about $2/day/child, they didn't eat much the first several years, I expect it to rise to $3-4/day. Clothing is $1/day for the first several years, we value shop and are less than that. Activities are whatever you think is reasonable. For us, most expenses are covered by CCB, except for RESP and Daycare.

Its disingenuous to only compare expenses when, as Canadians, we get extra money as well. Congrats on the first child!

CharlesBronzee

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Re: Canadian Needing Help- Share your annual expenses?
« Reply #8 on: August 22, 2019, 08:48:40 PM »
I live in the GTA where the cost of living is higher.  Family of four -  myself, wife, daughter (university), son (high school).  All in Canadian dollars.

Big 3 expenses:

Housing - $25k/yr, this includes mortgage payments, utilities, property taxes, maintenance  and repairs.  Mortgage payments is only $800/mo as house is almost paid off.

Food - $15k/yr.  includes groceries and food to go.

Auto - $15k/yr.  two leased cars BMW 328 and a japanese compact car.

Others:

Entertainment, cell phones, internet, allowance, term life insurance, clothing, dine out, medical and dental - $25k/yr

Major expense that will be gone after 2 years:

Daughterís university expenses - $15k/yr.  tuition and room and board.

Travel - varies but now at $10k/yr

Curious what others numbers are.