Canadian parents have doubts, and are worried about supporting them
TD Bank Group hasn’t had the best year, but its finances are far more robust than Canada’s most-used lender – the Bank of Mom and Dad.
With the new college year underway, TD has been asking parents about the financial futures of the next generation of adults, those still under 18 now, and it makes for concerning reading with seven in ten respondents saying their child will face greater financial challenges in life than they did.
Almost six in ten parents surveyed are expecting to provide financial support to their children once they become adults, with the future cost of living cited by one third as likely being unmanageable for them otherwise.
Three in ten respondents expect to need to support their children when they buy their first home and 35% said they don’t believe their kids will be financially independent until they are at least 26 and maybe until they are 30.
Among those who said their children are set for a tougher financial journey than they did, this is heightened when focusing on key milestones including buying a home of their own (77%), saving money for retirement (57%), and having the financial stability to raise a family (49%).
Despite their resignation to the near certainty of continuing to provide financial support to their adult children, 61% of respondents don't feel very confident in their ability to do so.
Most (79%) speak to their children (under 18) at least once a month and six in ten said these talks have been impacted by the current economic environment and their concerns about their kids’ financial futures.
"It's encouraging to see that some Canadian parents are taking the initiative to speak with their children about the importance of finances at a young age," said Emily Ross, VP, Everyday Advice Journey at TD. "These discussions lay the groundwork for financial literacy, helping to equip the next generation with the knowledge and skills to make informed financial decisions as they grow. By fostering an open dialogue and speaking with their children about money, parents are not just teaching their kids about saving and budgeting, they're helping to empower them to build a more secure financial future."
Asked when they would feel secure about their child's financial future, Canadian parents surveyed said:
- When their child has a steady income (60%)
- When their child shows spending control (48%)
- When their child starts saving money (46%)
- When their child can afford to buy a home (38%)
Creating age-specific goals, using an allowance, budgeting, and taking the kids with them on bank visits were all cited as ways parents are exploring financial literacy with their children.
