According to a recent report by TD Bank, Canadian parents, including Albertans, are worried about their kids facing financial challenges.
In the report, TD Bank stated that nearly three in five (57 per cent) Canadian parents 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," stated TD in a press release.
Just 35 per cent of respondents think their children won't become financially independent until they are between the ages of 26 and 30. Seven out of ten Canadian parents surveyed think their child will have more financial difficulties in the future than they did, particularly when it comes to reaching significant 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)."
Sventy-nine per cent of Canadian parents said they discuss money with their child or children at least once a month, up 14 per cent from 65 per cent in the previous year's survey.
"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."
According to 79 per cent of parents surveyed whose conversations with their children about money have been influenced by the state of the economy, they talk about their financial achievements and difficulties at home to advance financial literacy instruction.
"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, of 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."
Of the parents polled, only one-third (36 per cent) felt extremely confident in their child's financial literacy. According to TD, 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).
The most crucial financial lessons for kids to learn, according to parents polled, are budgeting (69 per cent) and saving money (76 per cent).
TD Bank provided DiscoverAirdrie with some Alberta-specific statistics:
- Almost half of Alberta parents expect to financially support their children after they become adults, however, 77 per cent don’t feel confident in their ability to do so – the highest in Canada.
- Most Alberta parents believe their children will face greater financial challenges in life than they did, especially when it comes to achieving major financial milestones.
- The economic landscape in Alberta is pushing more parents to talk about finances at home.
- Only about a third (34 per cent) of Alberta parents surveyed feel confident in their child’s financial knowledge.
- Over 6 in 10 (63 per cent) Alberta parents surveyed say they often worry about their child’s financial future, up 11 per cent from last year.
- Alberta parents believe establishing needs vs wants (80 per cent), budgeting (77 per cent), saving money (74 per cent), debt (57 per cent) and goal setting (52 per cent) are the most important financial fundamentals for children to learn today.
1,232 randomly selected Canadian adult parents with at least one child under 18 years old who are Maru Voice Canada, online panellists, were surveyed from September 26 to October 1, 2024.
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