The Early Parent Readiness Report surveyed expecting and new parents across Canada, revealing that a lack of confidence in affordability is driving more young families to prioritize financial planning and education savings (RESPs).
Download the full report
As living costs continue to rise, young families across Canada are feeling the financial pressure even before their child arrives. According to a new survey by Embark, Canada’s education savings company, in partnership with Angus Reid, people having children today (90% millennial respondents) are actively planning for the financial realities of parenthood, but many aren’t fully confident they can keep up.
Despite these pressures, the data reveal that millennial parents are not disengaged from financial planning; they’re actually making deliberate trade-offs and are prioritizing long-term goals like education savings (RESPs), even as day-to-day costs continue to climb.
“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. “Embark helps parents simplify education savings, maximize government incentives, and build a plan they can feel confident in, giving them one less thing to worry about as they navigate the early stages of parenthood.”
Young families are shifting their financial priorities
The day-to-day cost of raising a child is already adding up, and with continued uncertainty around how costs may evolve, parents are becoming more intentional about how they allocate their money across immediate needs and future goals.
More than half (54%) of expecting parents say they are only somewhat financially prepared to have a child, with those in Ontario ranking the least prepared (67%).
- More than 1 in 3 (36%) of new parents say they’ve received financial help from family, with 21% receiving one-time assistance, and 16% receiving ongoing support. Those in B.C. are the least likely to receive help from family (69%)
- Most new parents (37%) report spending between $500–$999 per month on their child, with another 26% spending under $500
- When given a hypothetical $2,500, parents prioritize financial stability over immediate needs like housing:
– 22% would save it
– 20% would pay down debt
– Just 13% would spend on baby essentials, and 11% on housing
Even in the early stages of parenthood, financial pressures are shaping behaviour, with parents making deliberate, forward-looking decisions to manage both immediate costs and long-term stability.
What are new and expecting parents most concerned about?
For today’s expecting parents, financial pressures and sleep deprivation are top of mind, even outweighing concerns like health and safety.
- Sleep loss and exhaustion (26%) rank as the top concern among new and expecting parents, with men most stressed about sleep exhaustion (29%)
- Financial responsibility (21%) follows closely behind, with women most stressed (27%)
- Meanwhile, health and safety (13%) and work-life balance (11%) rank notably lower
Among new parents, these concerns quickly become reality. The top challenges cited are loss of personal time (25%), balancing work and parenting (25%), and sleep deprivation (23%).
Despite this, financial priorities remain dominant. When asked to choose between receiving $5,000 or a week of uninterrupted sleep, 84% of new parents chose the money, underscoring how central financial considerations are, even when faced with extreme exhaustion.
How are millennial parents preparing for children differently?
Think millennials are focused on avocado toast and pricey coffees? Think again. Embark found that millennial parents are actually approaching parenthood with a strong financial lens, actively planning for both immediate costs and long-term goals, but a clear gap remains between preparation and confidence.
When looking at savings so far, 36% of parents have already saved $5,000 or more for their child, but nearly a third (32%) have not started saving at all, with men (44%) and expecting parents (37%) leading the way in savings.
Education savings are a top priority for expecting and new parents
Even as affordability remains a challenge, education savings are emerging as a clear priority for Canadian families.
Nearly three-quarters (73%) have opened an RESP (i.e., Embark), with only 5% of respondents not saving at all.
This is likely driven in part by awareness of available incentives, with 74% of parents familiar with government matching programs, making it easier for parents to get started and build savings over time.
At the same time, a confidence gap remains:
- Only 33% say they are confident they can fully pay for their child’s post-secondary education
- 27% say they won’t be able to, while 26% expect it will be financially tight
- Parents in Atlantic Canada are the least confident, with 48% saying they won’t be able to afford it
To learn more about how Embark helps families plan and save for their child’s future, visit embark.ca.
Download the full report
Survey Methodology:
These are the findings of a study/survey conducted by Embark from March 10-15, 2026, among a sample of n=579 online residents of Canada who are members of the Angus Reid Forum and are either parents or future parents between the age of 18-50. 90% of respondents in the survey were millennials between the age of 30-45. The survey was conducted in English and French. For comparison purposes only, a probability sample of this size would carry a margin of error of +/- 4.0 percentage points, 19 times out of 20.
AP0362-1
Embark is Canada’s education savings and planning company. The organization aims to help families and students along their post-secondary journeys, giving them innovative tools and advice to take hold of their bright futures and succeed.
