Parents Juggling Financial Pressure and Planning: BMO Real Financial Progress Index

• Despite stressors, parents are making informed decisions, taking proactive action and making financial headway. 

CHICAGO, Aug. 19, 2025 /PRNewswire/ - The latest BMO Real Financial Progress Index finds most Americans (79%) feel anxiety about their overall financial situation. However, parents with children under 18 at home are more likely to feel overwhelmed by their financial responsibilities—71% of parents, compared to just 54% of those without children at home.

But despite the stress, parents say the experience is a positive one: 89% agree having children brings them unmatched joy and fulfillment, and 59% of Americans who are raising children under 18 feel they are making real financial progress, compared to 41% without children at home.  

"Parents today report feeling significant financial pressure—but they're also stepping up in powerful ways to take control of their family's financial plans," said Paul Dilda, Head of U.S. Consumer Strategy, BMO. "At BMO, we're proud to support families of all kinds as they set goals, plan ahead, and take action to achieve real financial progress." 

Parents are Taking Financial Action and Seeing Progress 

Although parents with children at home are more likely to say they feel financially overwhelmed, they are also more likely to use proactive strategies to manage that stress. For example, 60% of parents set a yearly budget, compared to 37% of those without children at home.

Other strategies parents with children at home are more likely to employ include setting financial goals (83% vs. 74%), having a written financial plan (54% vs. 31%) and having a professional financial advisor (47% vs. 32%).

How Everyday Costs, Finances, and Social Pressures Shape Parenthood

Americans say the price of childcare is too high, with 83% agreeing the cost of raising kids has "gotten out of control" and 78% saying they often wonder how those around them can afford raising a family.

With concerns about managing the financial aspects of parenthood so widespread, Americans report money is a major factor in their family decision-making. Nearly half (48%) of parents say financial stability was a top three factor influencing whether they had children. Potential financial strain is also weighing on the plans of those who do not yet have children: 55% of Americans who plan to raise children someday and 40% who are unsure if they will start a family say they are concerned about the negative impact on their financial security.

One significant challenge for American parents is balancing the short and long-term financial priorities of raising a child: 84% of parents say everyday costs like daycare or school supplies negatively impact their ability to save for their child's long-term future. Other financial hurdles and stressors widely affecting parents include:

• Everyday Sticker Shock: Many American parents say everyday costs of raising children took them by surprise, including family groceries (38%), activities and entertainment like sports clubs and toys (36%) and the cost of daycare or afterschool care (32%).
• Parental Peer Pressure: 77% of parents with children at home agree they feel pressure to keep up with other families by spending more than they should. The anxiety to keep up with those around them is most pronounced among younger parents, with 78% of Gen Z and 81% of Millennial parents saying they feel the pull to overspend, compared to 74% of Gen X and 68% of Boomer parents.
• Financial Doomscrolling: 80% of parents say the lifestyles of parenting influencers on social media fuels financial anxiety. Younger parents are more likely to report social media-induced stress: 80% of Gen Z and 83% of Millennial parents say parenting influencers fuel financial anxiety, compared to 74% and 67% of their Gen X and Boomer counterparts.

Pets are Family Too (Financially Speaking)

A source of financial stress for both American families with and without children are their beloved dogs, cats and other pets.

Americans overwhelmingly consider their pets family, with 81% of Americans, including non-pet owners, agreeing a dog or cat is a full member of a family. Similar to the cost of childcare, most Americans agree the cost of pet care has risen over recent years: 64% of Americans say the cost of taking care of a dog or cat is almost as high as having a child.

"No matter what your priorities are for your family, being intentional with your financial goals can help you feel more in control and avoid peer or social media pressure to overspend," Dilda said.

BMO Helps Families Make Real Financial Progress 

Whether it's a first-time parent looking to manage new expenses, a parent making a plan to support their children's college education, or a committed pet parent, BMO offers the following tips and resources to help families make real financial progress:

• Get back to school: No matter the life situation, brushing up on financial fundamentals is a great way to make financial progress. Access resources on BMO's Real Financial Progress Hub to find personal finance tools and resources to reach financial goals.
• Build a childcare nest egg: BMO clients can use free digital banking tools to set up and name a savings account specifically for childcare and related expenses and automate transfers to the account every month to start saving up for big childcare expenses.
• It takes a village: To help chart a path towards financial goals, book a meeting with a BMO Financial Advisor.

To learn more about how BMO can help families and individuals make real financial progress, visit https://www.bmo.com/us.

About the BMO Real Financial Progress Index
Launched in February 2021, the BMO Real Financial Progress Index is an indicator of how consumers feel about their personal finances and whether they are making financial progress. The survey aims to spark dialogue that will help consumers reach their financial goals and to humanize a topic that causes anxiety for many – money.

The research detailed in this document was conducted by Ipsos in the U.S. from June 10 to July 17, 2025. A sample of n=2,500 adults ages 18+ in the U.S. were collected via the Ipsos panel. Quotas and weighting were used to ensure the sample's composition reflects that of the American population according to census parameters. This survey has a credibility interval of +/- 2.4 per cent 19 times out of 20, of what the results would have been had all American adults 18+ been surveyed.

About BMO Financial Group
BMO Financial Group is the seventh largest bank in North America by assets, with total assets of $1.4 trillion as of April 30, 2025. Serving customers for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to 13 million customers across Canada, the United States, and in select markets globally. Driven by a single purpose, to Boldly Grow the Good in business and life, BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future, and inclusive society.

SOURCE BMO US