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