December 6, 2024

Personal Economic Consulting

Smart Investment, Bright Future

Survey finds most Canadian parents expect to support adult children amid financial worries

Survey finds most Canadian parents expect to support adult children amid financial worries

A new survey by TD Bank Group reveals that nearly three in five Canadian parents (57 percent) anticipate financially supporting their children into adulthood, yet the majority (61 percent) are uncertain about their ability to do so. The survey highlights growing concerns among parents about their children’s future in an increasingly costly economy, where seven in ten believe their children will face greater financial challenges than they did.

The pressures of rising costs, particularly in housing and everyday expenses, are among the leading reasons why parents expect to provide ongoing financial support. One-third (33 percent) of parents attribute this expectation to the high cost of living, while 30 percent express concern over housing affordability. Over one-third (35 percent) believe their children will only reach financial independence between the ages of 26 and 30.

The study also found that parents foresee challenges for their children in achieving major financial milestones. More than three-quarters (77 percent) worry about the feasibility of home ownership, while others are concerned about saving for retirement (57 percent), affording groceries (53 percent), and raising a family (49 percent).

Economic Landscape Encouraging Financial Education at Home

With economic pressures growing, four out of five parents (79 percent) now discuss finances with their children at least once a month, a 14 percent increase from the previous year. For three in five parents (60 percent), the current economic environment has shaped these conversations, with 61 percent indicating they worry more frequently about their children’s financial future.

Among parents whose financial discussions have shifted, nearly 80 percent now openly share their financial successes and challenges at home. “It’s encouraging to see Canadian parents initiating financial discussions with their children,” said Emily Ross, VP of Everyday Advice Journey at TD. “These conversations lay the groundwork for financial literacy, equipping the next generation to make informed decisions as they grow.”

Building Financial Literacy at Home

Only 36 percent of surveyed parents feel highly confident in their child’s financial knowledge. Many parents are taking proactive steps to boost financial literacy, including setting age-appropriate finance goals (41 percent), providing allowances (35 percent), creating budgets together (32 percent), and taking children on bank visits (32 percent). When it comes to essential financial skills, parents consider saving money (76 percent), budgeting (69 percent), and distinguishing needs from wants (68 percent) as fundamental.

Canadian parents feel secure about their child’s financial future when milestones such as steady income (60 percent), spending control (48 percent), and starting a savings plan (46 percent) are achieved.

 

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