Smart Spending: How Canadian Parents Are Budgeting For Back-to-School 2025

Back-to-school shopping looks a little different this year. According to Capital One Canada’s third annual Back-to-School survey, Canadian parents are facing rising costs—spending on average $8,800 per child throughout the school year, up from $7,709 in 2024. From food and transportation to clothing and extracurriculars, expenses are climbing, but parents are proving resourceful. Nearly three-quarters say they’ll shop around for the best price, and 68% are turning to deals, sales, and coupons to stretch their budgets. We sat down with Becca Mintz, Vice President at Capital One Canada, to talk about the survey findings, cost-saving strategies, and how families are using this season as a chance to teach kids about financial literacy. —Noa Nichol

1. With the average annual cost of raising a school-aged child surpassing $8,800 this year, what categories are driving this increase the most, and what does that say about shifting family priorities?

Food remains the top expense for families, according to the survey results, and has increased by nearly 18% between 2023 and 2025 – an inevitable expense for all families. Following food expenses, parents are choosing to spend on costs related to child care and extracurricular activities, particularly for parents with children under six. Spending on technology has become a non-negotiable and a major expense, with families spending about $523 per child annually, especially for teens aged 13 to 17, who rely heavily on these devices for learning. On the other hand, spending on school supplies remains relatively low, suggesting that families are cutting back in areas they see as less critical, while finding ways to reuse or limit these purchases.

Budgeting is an important tool to help manage these rising costs. Taking inventory of what you already have, prioritizing essential purchases, and looking for deals or second-hand options to stretch your budget are all helpful ways to ensure you’re sticking to a budget. 

• More than 95% of Ontario parents are deploying cost-saving strategies. Which of these strategies do you think are most effective—and most realistic—for families to adopt long term?

Consistently shopping around for the best prices and watching for sales and coupons are effective strategies every family can adopt long term. It can take a bit of time, but the savings can really add up. Connecting with friends and family to share resources or swap tips on discounts can help stretch your dollars further too.

Capital One Canada’s Life & Credit Blog is a great resource to find more budgeting tips and ideas to help families manage their finances more effectively. Overall, it comes down to thoughtful planning and staying organized with spending habits, which can help families save without the added stress.

• The data shows that 56% of Ontario parents save well in advance for back-to-school, more than any other province. What can parents elsewhere learn from this proactive approach?

Planning ahead and using credit wisely can help turn what can feel like unexpected expenses into costs that are easier to manage and anticipate. This proactive approach gives families a stronger sense of control over their finances. By preparing early, parents have more time to carefully consider what’s actually needed, identify the best places to buy, and strategically decide how to pay—whether that’s using credit or taking advantage of sales and coupons. This prevents the last-minute rush, which often leads to purchasing things at higher price points or purchasing things you don’t need.

Access to credit can be a real bonus here, giving families flexibility to spread out payments or take advantage of rewards programs. This helps to manage cash flow without compromising on their kids’ needs.

• With food making up the largest share of annual costs, how can families budget smarter for everyday expenses like lunches and groceries, especially when prices continue to rise?

With food representing the largest share of expenses—over $800 per child per year on school lunches alone—budgeting smarter for everyday costs is important. Focusing on essentials, avoiding unnecessary purchases, and regularly reviewing spending habits are useful strategies. I myself have two kids under 6 at home, and I know that meal planning has been a huge help. For me, that means spending twenty minutes on Sunday afternoons getting organized for the week ahead. I do this in my kitchen so that I can physically look at what we have on hand and integrate it, which helps my family reduce food waste (which is also wasted money!).

We know from our survey that nearly half of parents (48%) have been able to improve their financial situation through better budgeting and habits. This approach helps families anticipate expenses and reduce financial stress during the busy back-to-school season. 

• Parents are increasingly involving their kids in budgeting conversations. From your perspective, how early is too early to start talking to children about money, and what are some age-appropriate ways to start?

Financial literacy is a crucial skill that sets the foundation for responsible money management later in life. I grew up in the era of having physical bank books that you’d take to your local bank branch to update when you’d make a deposit or withdrawal! I loved taking my birthday money or allowance to the bank with my parents as a result. While I know that reference dates me, there are modern day equivalents through mobile apps or even hand drawn budgets for younger kids if you want to get the washable markers out.

It’s never really too early to start introducing basic money concepts. Starting these conversations early helps children develop healthy financial habits and confidence in managing money, which benefits the whole family over time.

• Beyond cost-cutting, how are parents using back-to-school season as a teaching moment for financial literacy, and how is Capital One supporting these efforts?

Many parents use back-to-school time to teach financial responsibility by involving kids in budgeting, prioritizing purchases, and distinguishing wants versus needs. This could include sitting down with your child and building a shopping list together, demonstrating how to budget across different categories. These hands-on lessons help develop important money management skills.

Capital One is supporting these efforts by offering practical, accessible tools and advice through our Life & Credit Blog, which is available to anyone, whether a Capital One customer or not. These resources – from budgeting tips to credit basics – empower parents to take financial education into their own hands, preparing their kids to become confident, financially savvy adults.

• Nearly half of parents surveyed said their financial situation has improved thanks to better budgeting. What budgeting practices or tools are you seeing families embrace that really work?

Simple habits like tracking expenses, having dedicated savings, setting spending limits, and regularly reviewing budgets help parents make informed decisions. Tools such as Capital One’s Credit Keeper, are especially effective in building self-confidence and encourage healthy credit management. The use of tools like this helps families strengthen their financial health and stay on track toward their goals.

• Finally, what role does Capital One hope to play in helping Canadian families not just manage rising back-to-school costs, but also feel more financially confident year-round?

Our goal is to support Canadians at every stage of their financial journey. We want to open doors for those who didn’t think they had credit options and provide clear paths to financial well-being with simple and transparent products. That’s why all of our cards come with a range of features, tools and services to help you get the most out of your card. For example, our Smart Rewards credit card encourages responsible credit use by rewarding you for paying down your balance.