Nearly one in five Canadian parents with children aged 35 to 40 say they continue to provide financial support, highlighting the extent to which financial dependence can extend well into adulthood, according to a new RBC survey.
The survey found that 32 per cent of Canadian parents with adult children aged 18 to 40 consider their children not yet financially independent, while 21 per cent of parents with children aged 30 to 34 and 19 per cent of those with children aged 35 to 40 say they continue to support them financially.
More than half of parents surveyed — 51 per cent — said they had provided financial assistance to an adult child during the previous 12 months, giving an average of $6,151. Among parents with children aged 35 to 40, 37 per cent said they had provided financial assistance during that period.
Everyday expenses become part of parental support
The survey suggests financial assistance is not limited to large or unexpected expenses, with parents also helping adult children cover routine household costs.
Among parents who provide financial support, 56 per cent said they help pay for groceries, while 43 per cent have helped with an unexpected or emergency expense. Another 24 per cent contribute to rent, 21 per cent help with utilities and 12 per cent assist with credit-card or debt repayments.
Some forms of assistance become more common as children get older. The survey found 24 per cent of parents with children aged 18 to 24 help pay rent, compared with 30 per cent of parents with children aged 30 to 34. Grocery assistance remains common among older adult children, with 43 per cent of parents with children aged 35 to 40 saying they still help cover the cost.
"Financial independence used to feel like a finish line where you graduate, get a job, move out and start paying your own bills. For many families, that path is no longer as linear," said Lucianna Adragna, vice-president, Client Segments, Everyday Banking, RBC. "Parents are navigating a new reality where financially supporting a child can extend well into adulthood. The challenge is making sure that support helps the next generation move toward independence while parents continue to make progress toward their own financial goals."
Cost of living cited as a factor
The survey found that parents cited both their own sense of responsibility and the financial circumstances of their adult children as reasons for continuing to provide support.
More than half, or 51 per cent, said supporting their adult children is simply "what parents do," while 35 per cent said the cost of living is too high for their children to manage on their own. Another 25 per cent said they want to provide their children with opportunities they did not have growing up, while 15 per cent said their adult children do not yet have the money-management skills needed to become financially independent.
Melissa Leong, a personal finance expert, said the extended financial relationship can create competing priorities for parents.
"This generation isn't failing to launch. The runway has gotten longer and a lot more expensive," said Leong. "Many parents are now stepping in to financially support their adult children, but it must work for the whole family. This support works best when it doesn't just fund today, but when it helps build the skills, confidence and capacity to fund more of tomorrow."
RBC recommends that parents consider their own essential expenses, emergency savings, high-interest debt and retirement planning before determining how much financial assistance they can sustainably provide.
Financial support doesn't have to conflict with competing priorities
It also suggests that families discuss financial responsibilities, determine who will pay specific expenses and establish when arrangements will be reviewed. Parents are encouraged to gradually transfer responsibility for individual expenses as their children's financial circumstances allow.
Adragna said the financial support does not necessarily have to conflict with parents' own long-term planning.
"Supporting your children and planning for your own financial future don't have to be competing priorities," said Adragna. "The key is having open conversations about what support looks like, setting shared expectations and making sure that financial help is also helping young adults build the skills and confidence they need to become independent."