BMO Real Financial Progress Index: 81% of U.S. Latino Parents Say the Cost of Raising Kids is 'Out of Control'

"Latino parents have a deep-rooted drive to provide the best for their children and extended family, but navigating daily costs, caregiving, and long-term goals can feel overwhelming," said Lizzy Diaz-Ortiz, Vice President of Hispanic/Latino Banking, BMO. "By taking actionable steps like utilizing financial tools to track spending or setting clear, multi-generational savings goals, parents can continue to support their families without sacrificing their own financial progress."

On a yearly basis, U.S. Latino parents with children at home estimate they spend:

• $5,133 on groceries and household goods
• $3,196 on family travel and vacations
• $2,301 on healthcare
• $2,400 on childcare
• $1,259 on clothing and shoes
• $989 on extracurriculars (sports, music lessons)
• $865 on entertainment (toys, video games, streaming)
• $858 on baby supplies
• $810 on summer camps or after-school programs

Facing these daunting figures, 87% of Latino parents say everyday childcare costs negatively impact their ability to save for their child's long-term future.  Yet, despite the squeeze, they still manage to carve out an average of $1,681 annually to save for college.

The data shows that 80% of U.S. Latino parents are concerned about financially providing the life they wish for their children – 7 points higher than the general U.S. parent population at 73%. And their worry for the future is comprehensive: 80% worry about their children's health and safety, 81% about emotional wellbeing, and 81% about their children's education, financial future and future career prospects.

Managing la familia: navigating a "triple squeeze"

For Latino families rooted in familismo, the financial pressure of parenting rarely exists in a vacuum. Of U.S. Latino parents, 59% consider themselves part of the "sandwich generation" – responsible for caring for both children and aging relatives, 14 points higher than the general U.S. parent population (45%).

• The generational squeeze: More than two-thirds (69%) of sandwich generation Latino parents report feeling regularly tugged between the financial demands of their children and aging relatives. This compounding pressure is likely why 65% admit to sacrificing their own career earnings and potential to support their family. 
• Housing as a financial lifeline: To survive this squeeze, many rely on culturally rooted housing strategies. More than three-quarters (76%) of sandwich generation Latino parents say living in a multi-generational household actively helps alleviate the financial stress of raising children – underscoring collective housing models as a vital path to shared stability for U.S. Latinos, as revealed in BMO's latest Real Financial Progress Index on Homeownership.   
• Family help is not discretionary: But support extends far beyond a shared roof. Half of sandwich generation Latinos (51%) say they treat giving money to extended family as a non-negotiable monthly expense, similar to rent or a utility bill – serving as a fixed survival cost, rather than discretionary spending. 

The realities of salir adelante: the Latina caregiving stretch

While managing the demands of parenthood, Latino men and women alike are making compromises to keep the family unit afloat but the data reveals a gap where Latina women carry a disproportionate share of the financial and emotional workload.

• Shared career sacrifice: When it comes to supporting the family, financial sacrifice is a shared reality. Compared to 54% of the general Latino population, 61% of Latino parents say they have sacrificed their career or earnings potential to support their family. This sacrifice is practically equal across genders (61% of Latino dads and 61% of Latina moms) – occurring at higher rates than the general population (55% of dads and 53% of moms), ultimately capping their upward mobility.
• The earning divide: While career sacrifices are equal, post-child income trends diverge. Among U.S. Latino men, 61% say they earned more after having a child, lagging behind 67% of general population men. Conversely, 53% of Latina women outpace general population women (50%) in earning more after having a child, suggesting Latinas are taking on more responsibilities professionally to contribute to family earnings.
• The caregiving stretch: While financial sacrifices are shared, the emotional toll skews female. Over two-thirds (68%) of Latina mothers regularly feel overwhelmed by financial responsibilities – 13 points higher than general population moms (55%) and outpacing both Latino dads (60%) and general population dads (50%). This worry is often tied to specific costs, as 73% of Latina women say family-related expenses cause them financial anxiety compared to 68% of Latino men. Furthermore, among Latinos who care for children under 18 or younger siblings, 41% of Latinas shoulder both the financial and emotional care of these children, outpacing Latino men at 31% and general population women and men both at 30%.

The compounding pressure of these responsibilities and the drive to financially provide is shifting family planning. Facing these immense hurdles, 46% of Latina women without children under 18 in the household have decided they will not have children, compared to 42% of Latino men.

The cost of distance

For many Latinos, having family nearby acts as a crucial financial safety net. More than three-quarters (78%) of U.S. Latinos with young children say they rely on financial support from extended family to afford opportunities for their kids. 

• The value of "La Familia Extendida": U.S. Latinos with local help save thousands annually, cutting childcare costs by more than half ($1,488 vs. $4,425) and saving on elder care ($972 vs. $2,184).
• The proximity tax: However, because they rely so heavily on this network, losing family proximity penalizes Latino families disproportionately. Latino parents spend on average $352 more per year on childcare and on eldercare compared to the general population in the same situation – a distinct "proximity tax."
• The bridge generation: Gen Z's dual responsibilities inside the home
• When external support is limited, the pressure often moves directly inside the home, falling on the shoulders of Gen Z.
• The sibling co-parent: 43% of Gen Z Latinos say that helping to raise or financially support younger siblings has actively delayed their own life goals (like moving out or getting married). Over half (52%) of these Latino Gen Z caregivers report their siblings live in their home, effectively turning them into live-in co-parents (compared to just 40% of the Gen Z general population). Also, 74% of Gen Z Latinos admit that family-related expenses cause them direct financial anxiety.
• The parental financial guide: Gen Z Latino's caregiving contributions don't stop with their little brothers and sisters, as 52% say they are responsible for helping their parents navigate the U.S. financial system (i.e., translating documents, opening accounts, paying bills, etc.). Even at their young age, more than half (56%) say they've sacrificed their career and earnings potential to support their family.

AI as a financial niñera 

For households with multiple children, necessity is breeding rapid tech adoption. The larger the Latino family, the more reliant they are on Artificial Intelligence to navigate their complex financial ecosystem.

77% of U.S. Latino parents with three or more children use AI in some regard to manage their finances, compared to 69% of parents with two kids and 60% of parents with just one.

This embracing of technology is also evident in how Latinos are looking toward the future with 53% of U.S. Latino parents saying AI will help the next generation's future financial success.

Helping Latino families make real financial progress

BMO is dedicated to helping the Latino community navigate the complex costs of raising a family and supporting an extended family. No matter the size or composition of your household, BMO offers the following bilingual resources and tools to help Latino parents in the U.S. overcome financial barriers and make real financial progress:

• Plot the path forward: Weighing a move to be closer to familia, having another child, or paying for public or private college tuition? Use the new DollarGPS app to plug in different financial choices and project future long-term impacts to see how life's sliding doors can impact a family's financial future.
• Bring the familia financial unit together: Because Latino families frequently share financial responsibility across generations, consider meeting with a BMO Financial Advisor. Discuss your family's unique situation in English or Spanish to create a comprehensive plan that works for parents, children, and extended family alike.
• Bilingual financial education: No matter your life stage, brushing up on financial fundamentals is a great way to make progress. Utilize BMO SmartProgress™ for budgeting, saving, and planning tools available in English and Spanish, or visit BMO's Real Financial Progress Hub to study up with resources designed for the whole family.

To learn more about how BMO helps U.S. Latino parents make real financial progress, visit https://www.bmo.com/goals.

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 8, 2026 to July 13, 2026. 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 or 19 times out of 20, of what the results would have been had all American adults 18+ been surveyed. Average spend figures exclude outliers to avoid extremes impacting averages.

About BMO Financial Group 

BMO Financial Group is the eighth largest bank in North America by assets, with total assets of $1.5 trillion as of April 30, 2026. Serving clients for more than 200 years, BMO provides a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services across Canada, the United States, and select markets globally. BMO is innovating for business value, by deploying and integrating human, digital and artificial intelligence to personalize client experiences, augment teams, and automate its business responsibly. Driven by its 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 stronger communities.

SOURCE BMO US