A recent survey by TD Bank Group reveals that nearly three in five (57 per cent) of Canadian parents polled expect to financially support their children after they become adults. However, two-thirds (61 per cent) don’t feel very confident in their ability to do so.
Among those expecting to support their children into adulthood, one-third (33 per cent) of those surveyed say this is because they believe that the future cost of living (groceries, rent, etc.) won’t be manageable for them, with 30 per cent doing so out of concern their children may not be able to buy their first home. Just over a third surveyed (35 per cent) believe their kids will only become financially independent between the ages of 26 to 30.
In looking to the future, seven in 10 Canadian parents polled believe their child will face greater financial challenges in life than they did, especially when it comes to achieving major financial milestones. Among these parents, most believe their child will have difficulties purchasing a home of their own (77 per cent) followed by saving money for retirement (57 per cent), paying for increasing grocery costs (53 per cent) and having the financial stability to raise a family (49 per cent).
Economic landscape pushing more Canadian parents to talk finances at home
Four in five (79 per cent) Canadian parents polled say they talk to their child(ren) about finances at least once a month, which represents a 14 per cent increase from 65 per cent in last year’s TD survey of Canadian parents.
Further, three in five (60 per cent) Canadian parents polled say the current economic environment has impacted how they talk to their child about finances and 61 per cent of Canadian parents polled now say they frequently worry about their children’s financial future.
Among parents polled whose financial discussions with their child have been impacted by the current economic environment, 79 per cent say they discuss their financial successes and challenges at home to help further develop education around financial literacy.
“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.”
Building a foundation for financial literacy
Only a third (36 per cent) of parents surveyed feel very confident about their child’s financial knowledge. Some of the ways these parents are exploring financial literacy with their child at home include:
- Setting age specific finance goals (41 per cent)
- Providing an allowance (35 per cent)
- Creating a budget together (32 per cent)
- Taking their child along on bank visits (32 per cent).
Parents surveyed believe that saving money (76 per cent), budgeting (69 per cent) and needs vs wants (68 per cent) are the most important financial fundamentals for children to learn. When asked when they would feel secure about their child’s financial future, Canadian parents surveyed say:
- When their child has a steady income (60 per cent)
- When their child shows spending control (48 per cent)
- When their child starts saving money (46 per cent)
- When their child can afford to buy a home (38 per cent).
Additional resources for parents and youth
TD offers a number of tools and resources to support Canadian parents in helping build financial literacy with their children including:
- Booking an appointment with a TD Personal Banker – a good idea if you’re a parent looking to begin your child’s saving journey or have a teen who’s ready for the next step in their financial journey.
- Online resources, lessons and games that can help build financial literacy at home for kids as young as three years old up until the age of 18.
- TD MySpend, a money management tool that can help teenagers who have a TD deposit or credit card account create a budget and work towards their saving goals.
- Through the TD Ready Commitment, TD is also proud to support JA Canada’s Dollars with Sense program which supports youth across Canada with financial literacy education.
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