Sleep-deprived parents struggle to balance short-term stress and long-term education savings
Two-thirds of Canadian parents with children under five say Canada–US trade tensions have influenced how they save, and 60 percent report that economic uncertainty has changed their savings approach, according to a new survey from Embark.
More than half of parents surveyed said those tensions have directly impacted their investment strategies (55 percent) and their ability to save for their child's education (49 percent).
The findings highlight mounting financial strain on families already facing the challenges of early parenthood.
Andrew Lo, president and CEO of Embark, said new parents are facing a “perfect storm” of challenges, including sleep deprivation, the daily demands of raising children, rising costs, and trade tensions.
He acknowledged that market volatility can be discouraging but encouraged consistent saving.
“Even contributing a little each month to your child’s RESP can make a big difference over time,” he said.
He added that government grants can match up to 20 percent of RESP contributions, providing immediate value even before factoring in compound growth and investment gains.
Embark’s survey found that while 90 percent of parents see value in post-secondary education, only 52 percent of parents with children under five are actively saving for it using a dedicated account like a Registered Education Savings Plan.
For 82 percent, saving for a child's education was the top financial priority, ranking above paying down debt (77 percent) or saving for retirement (72 percent).
Despite this priority, many parents face barriers.
One-third (32 percent) said they lack the funds to contribute to an RESP, 27 percent are concerned about their financial situation changing, and 19 percent said they worry about maintaining regular contributions.
Exhaustion also plays a role in financial decision-making.
The poll found 79 percent of parents are regularly woken up by their children, with 41 percent reporting chronic sleep deprivation—defined as six or fewer hours of sleep per night.
Among them, 37 percent admitted to regretting financial decisions made while fatigued.
The survey also revealed that 67 percent of parents find it difficult to balance immediate family needs with long-term financial goals.
Concerns over affordability are growing, with 60 percent saying they worry about rising education costs.
According to Embark, children born in 2024 are projected to pay 36 percent more for post-secondary education than current students.
In addition, 63 percent of parents said they spend a lot of time thinking about how they will afford post-secondary education, while 70 percent expressed a desire for more knowledge on saving and investing.
When asked about future trade expectations, 32 percent of parents said Canada–US trade may improve slightly but not return to pre-tension conditions, and 21 percent believe things will permanently worsen.
Lo shared four recommendations for families navigating economic uncertainty.
First, shift from “saving is impossible” to “every little bit counts.” Second, avoid missing out on government grants. Third, view the RESP as a long-term savings vehicle. And fourth, pay attention to managing risk in volatile markets.
RESPS, he noted, offer up to 20 percent in additional savings from government grants before investment returns are factored in.
