Canada's 'Bank of Mom and Dad' Economy
Commentary Even as Canada reportedly raked in a cool $500 billion in new investment commitments at the mid-September Canada Investment Summit in Toronto, beneath the glamorous headlines, many Canadians are living precarious lives propped up by financial transfers from their families. A report released by the Royal Bank of Canada (RBC) on Sept. 15 argues that [...]
A significant portion of Canadian parents are financially supporting their adult children, with over half having made transfers in the past year. This trend, highlighted by an RBC report, involves substantial average amounts, reflecting a ‘Family Plan’ extending beyond basic needs. This economic reality exists alongside large investment commitments reported in Toronto.
- 51 percent of Canadian parents transferred money to adult children (aged 18-40) in the past year.
- The average amount transferred was over $6,000.
- This financial support goes beyond shared plans and covers everyday costs for adult children.
- The trend indicates a “new kind of ‘Family Plan’” where parents act as a financial resource.
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