A growing number of Canadian parents and grandparents are providing financial support to their adult children and grandchildren, according to a new report from BMO Financial Group.
The BMO Real Financial Progress Index, released recently, found that 45 per cent of parents and grandparents plan to offer financial assistance to their children and/or grandchildren within the next year. This support comes amid increased economic pressure on younger Canadians, particularly Generation Z and Millennials.
The survey shows more than one in five Gen Z respondents (22 per cent) rely on family to help cover general expenses, while 16 per cent receive help with student or education loans. Additionally, 13 per cent depend on family support for child-related costs and 10 per cent for RESP contributions.
Meanwhile, nearly three-quarters (73 per cent) of parents and grandparents intend to leave an inheritance to their children or grandchildren, and many are planning to transfer wealth during their lifetimes.
Anthony Tintinalli
“As many young Canadians navigate the current economic environment, parents and grandparents understandably want to help alleviate some of the financial pressures – from rising housing costs to education and childcare,” said Anthony (Tony) Tintinalli, head of specialized sales at BMO. “While support can make a meaningful difference, it is important to strike a balance between generosity and protecting your own long-term financial health.”
The findings reflect broader concerns about the future financial stability of younger generations. According to the report, 88 per cent of Canadians believe parents need to be concerned about their children’s economic future. Among those who reported increased concerns about inflation in the past three months, the same proportion expressed worry about their children’s education, financial future and career prospects.
Shelly Kaushik
“The Canadian labour market has weakened considerably in recent years, first driven by past interest rate hikes and a surging supply of labour, and now a highly uncertain trade backdrop weighing on the economy,” said Shelly Kaushik, senior economist at BMO. “Nowhere are these factors more apparent than in the youth job market – the unemployment rate for people aged 15-to-24 years has jumped to 14.5 per cent as of August, more than twice the national rate of 7.1 per cent.”
Kaushik noted that wage growth for youth has also cooled significantly, rising just 1.2 per cent year over year in August, compared to 3.2 per cent for all workers.
From estate planning to multigenerational caregiving, the report highlights the evolving nature of financial responsibility within families. More than one-third of Canadians (37 per cent) are currently responsible for the financial and emotional well-being of aging parents or in-laws, with 15 per cent also raising children at home.
“Estate planning at its core is about facilitating the transfer of wealth across multiple generations and in our practice, many families have the desire to transfer some of their wealth while they are still alive and able to see the benefits this can have on their loved ones,” said Lydia Potocnik, vice-president and regional director, estate and trust services at BMO Private Wealth.
Lydia Potocnik
“Fostering open communication among the generations about wealth, legacy plans and shared family goals and values, is an important step as our experts provide guidance and develop plans to help optimize the growth and transfer of wealth,” Potocnik added. “Proactive estate planning allows families to make these decisions with confidence, ensuring gifts are structured effectively, tax implications are minimized, and legacy goals are preserved.”
Among younger generations, expectations for financial assistance are common. More than half of Gen Z (53 per cent) and Millennials (51 per cent) expect to receive a cash inheritance. Many also anticipate inheriting real estate, investments or family businesses, with 32 per cent of Gen Z and 23 per cent of Millennials expecting to inherit a family business.
BMO emphasized the importance of setting boundaries and planning ahead to manage the financial pressures of multigenerational caregiving.
“Support can make a meaningful difference,” Tintinalli said. “We encourage families to assess their goals, set clear boundaries around what they can sustainably provide, and work with a financial advisor to build a plan that empowers – not enables – loved ones, and helps you make real financial progress together.”
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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