Survey also shows men significantly more likely than women to assist kids with first home purchase
TORONTO, ON – September 21, 2017 – Let the family feud begin. Nearly 4-in-10 of those with millennial children (38%) say those children are still financially dependent on them while one third of parents say their millennial 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 that 12% of children 34 and older are causing a financial strain on their parents.
“These results raise some fascinating questions about children, financial dependence and suggest potential sources of marital conflict,” said author, personal finance educator and FPSC’s Consumer Advocate, Kelley Keehn. “Perhaps the biggest question is how to help your children without jeopardizing your own financial well-being.”
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 millennial kids with post-secondary costs will postpone the retirement of 33% of respondents and prevent 32% from paying off their debt.
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 tapping into their home equity—with 22% of men (vs 12% of women) willing to pull from their own home assets 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.
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%.
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