Canadian families that have female breadwinners face more financial strain if they choose to have children, a new study reveals.
In recognition of International Women’s Day, TD Economics released a report highlighting the increasing share of women that are the major income earners in their families. The report also recognizes the growing challenge these families face when deciding to have kids.
“Families with female breadwinners are particularly exposed to financial strain when choosing to have children given the loss of the household’s primary income,” the report reads.
From 2019-2021, the share of female breadwinners in Canada represented nearly 30 per cent of households, while that number was 23 per cent back in 1996.
About 36 per cent of families without children have a female breadwinner compared to 27 per cent of families with children, according to 2019 data.
The average family income for male breadwinners in 2019 was $128,200, while the average for female breadwinners was $116,600.
“The gender wage gap is present among breadwinners as well, emphasizing the financial difficulty families with a female breadwinner can face. These families also tend to have a smaller savings cushion,” the report reads.
The average female breadwinner earns over 60 per cent of her family’s total income, but that share is higher in many cases, according to the report. This in turn, raises the vulnerability of those families if the women needed to go on maternity leave.
In addition, 27 per cent of female breadwinners contributed more than 70 per cent or more to their family’s income in 2019.
