Many Canadian adults still rely on parents to help pay the bills, RBC survey finds

An RBC survey of 1,000 Canadian parents with children aged 18 to 40 found that 32 per cent said their children were not yet financially independent. The bank said support can continue well beyond a child’s 20s: 21 per cent of parents with children aged 30 to 34 and 19 per cent of those with children aged 35 to 40 said they were still supporting them.

In the past year, 51 per cent of surveyed parents said they had provided financial help to an adult child, giving an average of $6,151. Nearly one in five said they had provided between $10,000 and $19,999. Among parents who support adult children financially, 56 per cent help with groceries, 43 per cent have covered an unexpected or emergency expense, 24 per cent help pay rent, 21 per cent contribute to utilities and 12 per cent help with credit-card or debt repayments.

Fifty-one per cent of parents said they continued to pay because it is simply what parents do. Another 35 per cent cited the high cost of living, while 25 per cent said they wanted to give their children opportunities they did not have growing up.

RBC said parents should prioritize essential expenses, emergency savings, high-interest debt repayment and retirement before deciding how much support they can sustainably provide. It also advised parents to determine whether an adult child’s difficulty paying for necessities stems from overspending, income or affordability before choosing a solution.