Nearly 3 in 5 Canadian parents expect to financially support their children after they become adults, but most aren't confident in their ability to do so, new TD survey
Seven in 10 Canadian parents also believe their child will face greater financial challenges in life than they did
TORONTO , Oct. 31, 2024 /CNW/ - 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.
About the survey
This Maru Public Opinion survey conducted on behalf of TD Canada Trust was undertaken by the sample and data collection experts at Maru/Blue . 1,232 randomly selected Canadian adult parents with at least one child under 18 years old who are Maru Voice Canada online panelists were surveyed from September 26th to October 1st , 2024. The results of this study have been weighted by education, age, gender and region (and in Quebec , language) to match the population, according to Census data. This is to ensure the sample is representative of the entire adult population of Canada. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of +/- 2.8%, 19 times out of 20. Discrepancies in or between totals when compared to the data tables are due to rounding.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or the "Bank"). TD is the sixth largest bank in North America by assets and serves over 27.5 million customers in four key businesses operating in a number of locations in financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Retail, including TD Bank, America's Most Convenient Bank®, TD Auto Finance U.S., TD Wealth (U.S.), and an investment in The Charles Schwab Corporation; Wealth Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD Insurance; and Wholesale Banking, including TD Securities and TD Cowen. TD also ranks among the world's leading online financial services firms, with more than 17 million active online and mobile customers. TD had $1.97 trillion in assets on July 31, 2024 . The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto and New York Stock Exchanges
SOURCE TD Bank Group
