Nearly half of Canadians with adult children say their “big kids” are a financial strain
Let the family feud begin. More than half (51%) of Canadians with adult children say those children are still financially dependent on them while nearly half (45%) say their “big kids” are still causing a financial strain on the parents—this according to the Children and Financial Dependence survey conducted on behalf of the Financial Planning Standards Council (FPSC). The survey also found considerable gender differences among parents’ intentions for their children (of all ages) and some startling regional differences as well.
The survey posed a series of scenarios to parents regarding their children’s post-secondary education, home buying and financial independence. According to the results, assisting their “big kids” with post-secondary costs will postpone the retirement of 45 percent of respondents and prevent 46 percent from paying off their debt.
When it comes to home purchases, it looks like Centennials (Generation Z) may be the first to lose out on mom and dad’s support. While two thirds (65%) of parents with children over 18 either will or already have assisted their kids with their first home purchase, only 43% of those with Centennials (children under 18) intend to do so.
The survey also found that men (44%) are significantly more likely than women (32%) to assist their children of all ages with their first home purchase. That gender divide also extends to delaying retirement—with 22 percent of men (vs 12% of women) willing to postpone retirement to assist their kids with their first home purchase.
Finally, there is one significant regional finding in the survey. Quebec parents are significantly less likely (12%) than the rest of the country (21%) to help their children purchase their first home if it prevents them from paying off their own debt.
“A Certified Financial Planner® professional can help your adult child find financial independence. In fact, there are opportunities at all ages to have fun while encouraging financial independence,” said Keehn. “One idea is working with a CFP® professional as a group. Make it a family affair. You don’t have to try to do this all on your own.”
The full survey results can be found here: http://fpsc.ca/docs/default-source/FPSC/children-and-financial-dependency-fpsc-leger-study-2017.pdf
About Kelley Keehn
Kelley Keehn is an award-winning author, personal finance educator and is the Consumer Advocate for the Financial Planning Standards Council (FPSC). She has written nine books on personal finance including Protecting You and Your Money; A Guide to Avoiding Identity Theft and Fraud and A Canadian’s Guide to Money Smart Living. Kelley is the Marilyn Denis show’s personal finance expert, was the host of the W Network’s Burn My Mortgage, sat on the National Steering Committee on Financial Literacy and is a member of the OECD’s International Network on Financial Education.
About Financial Planning Standards Council
As a professional standards-setting and certification body working in the public interest, FPSC’s purpose is to drive value and instill confidence in financial planning. FPSC ensures those it certifies (Certified Financial Planner® professionals and FPSC Level 1® Certificants in Financial Planning) meet appropriate standards of competence and professionalism through rigorous requirements of education, examination, experience and ethics. More information is available at www.fpsc.ca.
About the “Children and Financial Dependence” Survey
Leger conducted a survey of 1527 Canadians online between July 31 to August 3, 2017 using its online panel, LegerWeb. A probability sample of the same size would yield a margin of error of +/-2.5%, 19 times out of 20. Leger’s online panel has approximately 475,000 members nationally – with between 10,000 and 20,000 new members added each month, and has a retention rate of 90%.
SOURCE Financial Planning Standards Council