Parents Putting Financial Needs on the Line to Help Kids Through College: TD Survey

Credit cards are displayed in Montreal, on Dec. 12, 2012. The Canadian Press/Ryan Remiorz

A new survey finds that over 90 percent of Canadian parents are financially supporting children through post-secondary studies to the detriment of their own financial well-being.

The survey from TD Bank Group says 94 percent of Canadian parents are giving their children money during their university and college years. Of those, 71 percent say doing so leaves them struggling to meet their financial needs and additional activities.

Nearly half of students say they are not able to pay for their basic needs like food and housing, with 65 percent defining themselves as financially unstable, according to the survey.

“Our survey shows that many Canadian post-secondary students wish they knew more about budgeting and managing their finances, and it’s encouraging to see them interested in seeking advice,” said Emily Ross, vice president of Everyday Advice Journey at TD.

Ross said students need to be cautious when using social media for financial advice as the sources online are often “unvetted and untailored” to an individual’s circumstances.

Of the parents who provide financial support for students, 58 percent say the help they offer is  “significant.”

Financial Literacy

Parents also expressed concern over the spending habits of students, with 87 percent saying the budgeting capability of their children needs improvement.

“Coming out of the survey, we can see that Canadian parents recognize areas in their children’s financial knowledge and spending habits that could use some improvement,” Ross said.

Sixty percent say their children need to develop better spending habits, 42 percent say better financial literacy is needed, and 37 percent say their children need to rely on them for money less.

Twenty-seven percent of parents also recommend students use financial apps to track their budget and spending, the survey says.

Results were based on surveys of 1,029 randomly selected adults online, with 514 students and 515  parents of children who were in college or university. It was conducted from July 26 to Aug. 4.

A similar report by Equifax Canada found that younger Canadians are more likely to miss a payment on a credit card.

While the average debt for 18- to 25-year-olds is $8,072, the lowest of all the age groups, the delinquency rate is the second-highest.

In 2024, 18- to 25-year-olds saw a 13.23 jump in the delinquency rate to 1.86 percent. Overall debt for the age group increased by 3.23 percent, Equifax said.

The only age group more likely to miss a payment is those aged 26 to 35, with a 1.99 percent delinquency rate.

Inflation and rising costs have put pressure on all Canadians, the report authors said, adding that younger generations’ struggles may have them turning to parents for financial help.

“With fewer job opportunities, soaring rent prices, high housing prices, and the high cost of living, young Canadians are increasingly relying on the support of their parents and grandparents,” said Rebecca Oakes, vice president of advanced analytics at Equifax Canada.