Stay-at-home dad and wife struggle to meet their expenses on her $85,000 salary. Should he return to work and pay for day care?

Many Canadian families eventually face a tough question: Is it worth returning to work if childcare costs eat most of the second income? For Dan — a stay-at-home dad whose wife earns $85,000 — that question has become urgent. The rising cost of raising their twin toddlers has pushed the family to reconsider whether he should re-enter the workforce and pay for daycare.

While this specific case study is hypothetical, it is eminently relatable to a wide swath of Canadians. It’s natural to assume a second income would offset the cost of daycare in Canada, but childcare costs remain a significant financial burden for many families. Even with the recent rollout of the $10-a-day universal daycare program, spaces are limited, waitlists are long and many centres haven’t yet transitioned to the new funding model.

Some provinces and territories, like Saskatchewan, Quebec, Newfoundland and Labrador and Nunavut have already met — or exceeded — the $10-a-day target. But others, like Alberta and Ontario, for example, haven’t yet reduced fees to meet the $10-a-day amount. While both provinces have begun lowering fees under the federal childcare agreement, they haven’t announced timelines or confirmed how they will meet the April 2026 stepdown deadline, leaving families uncertain when they’ll see the full benefit.

The United Food and Commercial Workers union (UFCW) reports that, while the prices of childcare have declined in most Canadian cities, childcare fees are still high in many areas. For example, the average cost to keep a child under 18 months of age in day care is just over $900 monthly in Toronto and Richmond, B.C. — the highest in the country (1).

As of 2023, the average monthly cost of full-time, centre-based care for children under the age of five was $508, down from $663 the year prior as provinces and territories worked to meet the federal government’s $10-a-day target (2). While these reductions have cut daycare fees by between 40% and 60% in some regions, families still struggle to secure care, depending on their location, the number of children and whether they have access to licensed, subsidized spaces.

With monthly daycare expenses for two children under age six averaging about $880 (3), Dan’s dilemma is far from uncommon. Spending approximately $900 a month on child care can be an unmanageable expense for parents who may be struggling amid inflationary economic climate. And many have little to no choice, as most don’t have family or friends they can rely on to care for their children.

How to make the right choice for your family

While considering whether to return to work and send the kids to daycare can be a tough decision, thinking through several important factors can make the process feel a little less overwhelming.

Start by defining your family’s financial goals. Are you trying to pay down debt? Save for a home? Build a college fund? It’s best to align your decision with these priorities.

For example, if you’re breaking even with daycare and transportation expenses from a full-time job, but that job offers growth opportunities or long-term benefits, such as a group Registered Retirement Savings Plan (RRSP) match, it may still be worth returning to work.