More Canadian Families Seeking Financial Assistance from Grandparents to Meet Basic Needs

July 17, 2024 TruthUSA

According to an RBC survey, Canadian grandparents are increasingly relied upon to provide financial support to adult children and grandchildren.

The survey conducted on July 17 revealed that 21 percent of individuals aged 55 and above are financially supporting adult children over 25 years old, while 30 percent are providing financial assistance to grandchildren.

A significant portion of this financial assistance is directed towards covering basic necessities such as food and clothing. 70 percent of respondents stated that their adult children expect them to assist with essential expenses.

Craig Bannon, the director of RBC’s Financial Planning Centre of Expertise, commented, “While it’s not uncommon for grandparents to offer financial aid to younger generations, the current scenario reflects a necessity for such support rather than a mere willingness to help.”

More than half of the participants (54 percent) reported giving financial support to their adult children on a monthly basis.

RBC highlighted that when grandparents step in to help their adult children, it affects their own ability to save and plan for retirement.

More than half of the respondents (54 percent) reported dipping into their savings to assist their children and grandchildren, while 33 percent expressed concerns about running out of funds to support their families and cover their own expenses.

Mr. Bannon emphasized the importance of budgeting for the financial aid provided to adult children by grandparents.

Tips for Healthy Family Finances

RBC offers three recommendations for older Canadians who are supporting their family members:

1. Communication

Having open conversations with adult children about finances can set clear expectations regarding the extent of financial assistance grandparents can provide and how often.

2. Seek Advice

Consulting with financial experts about finances and retirement plans can help individuals develop suitable budgets and plans to align with their cash flow.

3. Be Aware

Prior to offering financial support to adult children or grandchildren, Canadians are advised to consider the impact such assistance may have on their own future.

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