Parenthood is facing a new reality, as the cost of groceries, access to housing, and the overall economic context mean that more and more young adults are relying on their parents’ help to ” go out in life.
This is what a survey reveals[1] directed by Canada Life in 2020. This percentage does not seem to have stopped climbing, while the average donation received by 30% of Canadian buyers for the purchase of a property was $77,487 according to a survey[2] led by CMHC in 2024.
Most popular financial aids
According to a text published in 2023 in the Globe and Mail[3]:
· 37% receive parental help with groceries;
· 25% receive parental assistance for rent;
· 10% receive parental assistance for the mortgage;
· 50% receive sums of money sporadically.
Financial support for parents: a moral obligation?
Should parents financially support their adult children if they can afford it? That’s the question I asked in a vox pop on my Instagram page @Elleinvestit and out of nearly 10,000 respondents, 49% voted “yes.”
The form this assistance takes varies greatly from one person to another. For many respondents, being able to live with their parents for free during post-secondary studies is a great financial help.
For other respondents – often from minority cultures – staying at home during their studies is a “self-evident” experience. For them, the “expected” financial support is more likely to be a down payment on a first home or a fully paid wedding.
It should be noted that in Quebec, parents maintain a support obligation towards their adult child, to the extent that the latter cannot provide for his or her needs, particularly because of his or her student status. Thus, mom and dad must contribute to paying the school fees of their offspring according to their financial means.
Finding the balance between generosity and responsibility
As a new mother, I constantly wonder about the best way to empower my child, knowing that I would like to offer him financial support as an adult. “Should I hide from him that he has an RESP?” I often ask myself.
I was surprised to read that many respondents take their parents’ financial support for granted, even though they probably worked hard and made sacrifices to get their money. I wonder if they will be willing to return the favor when the time comes. Is there an implicit pact of reciprocity?
Let’s face it, for most parents, offering financial support to their child is tantamount to giving up their own financial goals, including their quality of life in retirement. It is therefore necessary to find a balance between generosity and responsibility.
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[1] «Supporting adult children financially and the impact on your retirement», canadalife.com, 4 mars 2024.
[2] “The State of Home Buying in Canada: 2024 CMHC Mortgage Consumer Survey,” cmhc-schl.gc.ca, May 8, 2024.
[3] Carrick, Rob, «Nine in 10 parents are helping their adult kids financially: Here’s how much they’re spending, why and where the money goes», Globe and Mail10 avril 2023.
