Latino Families Face Economic Pressure to Raise Children

The rising cost of living is forcing many Latino families to reconsider their decisions about parenting and motherhood. A recent BMO survey revealed that 81% of Latino parents believe that raising children has become «out of control.»

The study also shows that everyday expenses compete with savings for housing, education, and retirement. However, financial pressure has not eliminated the value that families place on parenthood and multigenerational support.

How much do Latino parents spend annually?

Latino parents with children under 18 years old estimate they spend $5,133 annually on food and basic household items. Childcare represents another $2,400, while healthcare adds approximately $2,301 per year. These expenses do not necessarily include rent, transportation, tuition, utilities, or family debts. The combination explains why many households must cut activities, delay purchases, or seek support from relatives.

The total of these categories reaches $17,811 annually, not counting housing and other essential expenses. The figure reflects the weight of recurring expenses against incomes that do not always increase at the same pace. 87% of Latino parents stated that the daily cost of childcare reduces their ability to save for the future.

How does economic pressure affect family decisions?

80% of surveyed Latinos without children said they wonder how other families can afford to raise children. The concern also appears among those who wish to have children but fear losing economic stability. The report indicated that the desire to become parents decreased from 36% in 2025 to 30% in 2026. That variation does not prove a single cause, but coincides with greater concerns about housing, childcare, and healthcare.

Lizzy Diaz-Ortiz, vice president of Hispanic and Latino Banking at BMO, described the situation as a combination of daily responsibilities and family goals. The executive noted that Latino parents also seek to support older family members. The so-called sandwich generation simultaneously cares for children, parents, or grandparents.

Why did the extended family become an economic strategy?

Support from grandparents, uncles, and other relatives can considerably reduce childcare costs. 78% of surveyed Latino parents depend on family members to care for their children. This help can reduce expenses for daycare, transportation, and after-school programs.

However, it also shifts economic responsibilities toward older adults who may live on limited incomes. A previous BMO survey found that 51% of Latinos in the sandwich generation prioritizes economically supporting older family members. Multi