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 [...]
TL;DR
- 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.