Is it ever too early to start teaching kids about money?
A new survey by TD Bank Group has revealed a growing trend of Canadian parents anticipating the need to provide financial support to their adult children. Nearly three in five parents (57%) reported they expect to help their children even after they reach adulthood, but a significant majority (61%) lack confidence in their ability to do so.
The survey highlighted the concerns parents have about their children’s financial futures. One-third of parents believe the rising cost of living will be unmanageable for their children, while 30% worry about their ability to afford a home. These concerns are fueled by a widespread belief (70%) that children today will face greater financial challenges than their parents did.
The survey also found that the current economic environment is prompting more families to discuss finances openly. Nearly 80% of parents now talk to their children about money at least once a month. Many are sharing their own financial successes and challenges to help their children develop essential financial literacy skills.
“It’s encouraging to see that some Canadian parents are taking the initiative to speak with their children about the importance of finances at a young age,” said Emily Ross, VP, Everyday Advice Journey at TD. “These discussions lay the groundwork for financial literacy, helping to equip the next generation with the knowledge and skills to make informed financial decisions as they grow. Parents are not just teaching their kids about saving and budgeting, they’re helping to empower them to build a more secure financial future.”
Building financial confidence early
While parents are increasingly aware of the importance of financial literacy, many feel their children need more support. Only a third (36%) of parents express confidence in their child’s financial knowledge. Many are actively trying to boost their children’s understanding of money matters. Popular methods include setting age-appropriate financial goals (41%), providing an allowance (35%), creating budgets together (32%), and taking children along on bank visits (32%).
Parents prioritize teaching their children fundamental financial skills, with saving money (76%), budgeting (69%), and differentiating between needs and wants (68%) topping the list. When asked what would make them feel secure about their child’s financial future, parents cited a steady income (60%), spending control (48%), and saving habits (46%) as key indicators. Interestingly, the ability to afford a home (38%) was considered less crucial than these foundational skills.
The survey, conducted by Maru Public Opinion on behalf of TD Canada Trust, polled 1,232 Canadian parents with at least one child under 18. The results suggested a growing need for financial literacy education and support for both parents and children as they navigate an increasingly complex economic landscape.
