Large Family Money Saving Tips

Mortgage rate hikes, inflation, and the rising cost of groceries have many Canadian families struggling, worried, and as a result, finding it hard to save. For big families, these woes are magnified with more mouths needing to be fed on a budget that seems to be stretching less and less.

Maintaining your budget during the current financial climate in Canada can seem next to impossible, leaving saving money last on the list of priorities for many families, especially families with multiple children.

“How can I save money when it feels like there’s no room left in the budget to save?”

The key is to realize that small adjustments in spending habits can make space for savings—even without a significant increase in income.

Saving money is possible; here are 5 tips to save money for large families:

1: Save Money On Your Grocery List

Groceries have become astronomically expensive, especially the cost of fresh fruit, vegetables, dairy and meat. With more mouths to feed, large families are having to find innovative ways to feed their children healthy meals and stay within a budget.

Here are a few ways to save money on food for your family without sacrificing the family favourites you’re used to:

• Make a list to avoid temptations.
• Choose frozen over fresh fruit and veggies.
• Utilize coupons and compare prices at different grocery stores.
• Shop at bulk food grocery stores.
• Consider meal planning and batch cooking to avoid eating at restaurants or buying take-out.

If you’re ready to become a frugal foodie, here are 27 money-saving meals to get you started!

2: Save Money Shopping Sales & Second-Hand

Purchasing seasonal necessities for growing small children is unavoidable. What you can avoid: paying full retail price.

Facebook Marketplace has become a go-to place to shop for families because you can get quality gently used items for a fraction of the price, often even cheaper than thrift stores and consignment stores. You can find almost anything you’re looking for in your local area, including strollers, bikes, snowsuits, backpacks, brand name clothing, and even unwanted gift certificates.

If second-hand isn’t your style, subscribe to the email lists of your favourite stores and plan ahead. Make your purchases during end-of-season sales or special promotions.

3: Revise Living Expenses: Create a Family Budget

Canadians spend over 40% of their income on shelter and household operations, and 18.5% on transportation.

Explore all options when it comes to making your day-to-day living more affordable. Here are some places to start when figuring out where you could be saving money on living expenses:

• Consider downsizing, living with family, renting out your basement
• Compare insurance rates
• Make car trips count (get groceries on your way home instead of making an extra trip)
• Ask your internet/phone provider for discounts and promotions
• Look at how many streaming services you subscribe to and ask if you need them all
• Create grocery lists to keep you on track
• Make your lunches and coffee at home

4: Plan Ahead for Family Trips & Take Advantage of Free Activities

It can be difficult to manage emotions around family trips when money is tight, and your kids are asking why their friends are always travelling and they’re not.

It’s important to do what you can within your means and not try to keep up with what those around you can afford. If that means heading to a local beach or community pool for the day instead of flying to Mexico, do that! Also consider looking into free local events to attend in your area.

Funding family events like birthdays and weddings can also cause added stress during a time that should be spent celebrating. To avoid last-minute lofty expenditures, use a wall calendar or family planning app to schedule events and come up with a reasonable budget for each of them. You can also take advantage of free family activities happening in your community.

Learn how to plan a budget-friendly kids’ party here!

5: Open an RESP & investigate government benefits

If you’re trying to save money for your children’s future, it’s a great idea to open an RESP account and speak to your financial advisor about what government benefits and grants are available where you live. An RESP can benefit your child’s future even if they don’t choose to attend college or university.

Learning how to prioritize saving and control spending is a valuable lesson to learn as a parent, and one you can teach to your children along the way.

 

Ways to Cut Costs with Extra Money: Use Government Benefits and Tax Credits to Your Advantage

Beyond the tips we’ve listed for you above, more tips are available for families who have numerous kids and wish to improve their financial situation:

Canada Child Benefit (CCB)

The Canada Child Benefit is a monthly, tax-free payment provided by the Canada Revenue Agency (CRA) to eligible families with kids under the age of 18, which is intended to help families manage the rising costs of living. Eligibility is based on your family income and tax returns, and the amount of money each family receives will vary. Each time you file your taxes, the CRA automatically considers whether you are a candidate for this benefit.

More information is available here: Canada Child Benefit.

Child Care Expense Deduction

The Child Care Expense Deduction is available to parents and legal guardians who rely on childcare to go to work, attend school, or look for employment. Specifically, your child must be under the age of 16 or have a physical or mental impairment. You can claim these expenses on your income tax using form T778. If you are married or have a common-law partner, the individual with the lower net income will be the one to claim this deduction on their taxes.

Note that deductions can only be made for services that occurred in Canada to a Canadian resident.

GST/HST credit

The GST/HST tax credit is a quarterly payment that provides individuals and low-income families with credits to offset what they pay in taxes. The amount you get is based on your family’s income and is automatically determined when you file your taxes each year.

Ontario’s CARE tax credit

For families living in Ontario, the Childcare Access and Relief from Expenses (CARE) tax credit offers additional financial relief by covering a portion of their childcare. It supports families with incomes up to $150,000 per household. Families may receive up to:

• $6,000 for children under seven.
• $3,750 for children aged 7 to 16. 
• Each child with a severe disability receives $8,250. 

Other provincial programs

Beyond the Ontario CARE credit, your province or territory may also offer additional resources if you have a larger family with children. You can find more information on what benefits you may be eligible for on the Government of Canada’s website.

FAQs

What is the average cost of raising a child in Canada?

According to Stats Canada, the average cost of raising a child to the age of 17 was over $300,000 as of 2023. Given rising costs, in 2025, families can anticipate spending around the same amount on average, or more.

Planning for future expenses ahead of time, like education costs, like opening a Registered Education Savings Plan (RESP) as soon as a child is born, can help parents and family members ensure their child has the opportunity to pursue higher education should they wish.

Are there tax deductions for large families?

Yes, there are tax deductions available for those with bigger families, including:

• Child Benefit (CBB): Provides eligible families with monthly, tax-free payments to help with the rising costs of raising a child.
• Childcare Expenses Deduction: If your child goes to daycare while you’re working or going to school, you can deduct your childcare expenses from your taxable earnings for the year.