Prairie parents feel financial strain

Parents on the Prairies are feeling more financial pressure than families elsewhere in the country, according to a recent poll by the Royal Bank of Canada (RBC).

The survey found that 65 per cent of respondents in the Prairie provinces (Manitoba and Saskatchewan) said their household budgets have never been stretched so thin, compared with 60 per cent nationally.

In the region, 62 per cent of parents reported feeling so financially stretched that they’re struggling to afford what they would like for their children, well above the national average of 56 per cent.

The bank’s regional financial planning consultant Dawn Tam agreed with the findings.

“The pressure is there everywhere, but it’s being felt more acutely in Manitoba and Saskatchewan,” she said.

One of the most striking findings shows the degree to which parents are prioritizing their children’s immediate needs over their own long-term security, she said.

The poll found that 79 per cent of Prairie respondents said they would sacrifice their own financial future to spend what they can on their children today, compared with 67 per cent nationally.

Rising costs for everyday necessities are a major factor behind the strain. According to the poll, 92 per cent of Prairie parents said basic items such as food and clothing are more expensive than they were last year, compared with 85 per cent elsewhere in Canada.

The pressure extends beyond basic needs.

The survey also found that Prairie parents are feeling sharper increases in the cost of extracurricular activities, including sports, arts and crafts, with significantly more respondents reporting higher expenses compared with the 60 per cent national average.

Tam said while inflation may have cooled slightly, food prices in particular have not declined, creating ongoing challenges for families — especially heading into the holiday season, when spending pressures tend to increase.

“These everyday basics haven’t gone down, and parents are also facing rising costs for children’s activities,” she said. “That combination is making it harder to keep up.”

As a result, many Prairie families are delaying or rethinking major financial decisions. She said the poll found that 59 per cent of Prairie respondents are postponing major expenses, such as replacing a vehicle or undertaking renovations. The same percentage — 59 per cent — said they are scaling back or delaying long-term investments, including retirement savings, compared with 46 per cent nationally.

More concerning, Tam said, is the growing reliance on debt. The poll found that 38 per cent of Prairie parents said they are taking on more debt to meet their families’ current needs.

“When people are delaying investments and taking on more debt, it really shows how stretched things have become,” she said. “You can only spend more than you earn for so long before it becomes a serious problem.”

Tam said that the findings underscore the importance of budgeting and seeking advice early.

“Budgeting really comes down to income versus expenses,” she said. “Not everyone can increase their income right now, so it becomes about where you can cut back.”

She encouraged families who are struggling to speak with a financial advisor, noting that advisors can help identify creative ways to reduce expenses and relieve pressure. Tam also pointed to convenience spending — such as multiple subscription services — as an area where small monthly costs can add up quickly.

“If you’re not using something regularly, it’s okay to cancel it and come back to it later,” she said. “Those small changes can make a meaningful difference.”

While the poll did not identify specific Prairie-only factors driving the higher strain, Tam said the results clearly show that parents in Manitoba and Saskatchewan are under greater pressure than the national average — making careful budgeting and proactive financial planning more important than ever.

The poll was conducted by RBC from July 9-15, with a total of 1,514 Canadian parents with at least one child 0-17, who are members of the Angus Reid forum.

It is deemed accurate within a margin of about plus or minus 2.5 points at a 95 per cent confidence level.

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