Canada's Parents Supporting Adult Children Due to Rising Costs

More than half of Canadian parents provided financial support to their adult children over the past year, according to a Royal Bank of Canada (RBC) report. The average amount given was $6,151.

About 18% of parents gave their adult children between $10,000 and $19,999 over the past year, while 37% of parents with children aged 35-40 said they provided financial assistance to their older kids.

The report also found that nearly a third (32%) of Canadian parents said their adult children aged 18-40 are not yet financially independent. This included about one in five (19%) parents of adult children aged 35-40.

RBC's vice-president, Lucianna Adragna, said Canadians are becoming financially independent later in life due to rising costs and a desire for their children to have opportunities they didn't have. She noted that over the past six years, the consumer price index has climbed nearly 23%.

Cindy Marques, a Toronto-based certified financial planner, also commented on the trend, saying that the COVID-19 pandemic 'kicked off' a shift towards parents supporting their adult children later in life. She attributed this to rising rents and house prices intercepting plans for financial independence.