Canadian parents are increasingly serving as a financial lifeline for their adult children, with a new survey showing one in five Gen Zers rely on family support just to cover day-to-day expenses. The findings highlight a deepening trend of intergenerational dependence as young Canadians struggle to balance high living costs with slow wage growth.

According to BMO Financial Group's Real Financial Progress Index, 45% of parents and grandparents plan to provide financial support to adult children in the next year, whether for groceries, housing or child care. At the same time, 22% of Gen Z respondents said they already depend on parental support for general expenses, underscoring how economic pressures are impacting young Canadians.

“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,” Shelly Kaushik, Senior Economist, BMO, said in a statement.“Nowhere are these factors more apparent than in the youth job market.”

The BMO survey found that parental help is going beyond large, one-time milestones like down payments. Instead, many families are stepping in to help with basics: food, rent, tuition and even childcare expenses. Nearly one in four parents (23%) said they expect to contribute to their children's general expenses in the coming year, while 16% plan to cover costs like childcare, clothing or school activities.

This growing reliance comes against the backdrop of a strained youth job market. The unemployment rate among Canadians aged 15–24 climbed to 14.5% in August, compared to the overall national rate of 7.1%, according to Statistics Canada. With fewer entry-level opportunities and slower wage growth, young people are finding it harder to make ends meet on their own.

With housing costs, rents and groceries outpacing young people's earnings, experts say intergenerational transfers are filling the gap.

Beyond short-term support, the report highlights the scale of wealth expected to shift between generations . Nearly three-quarters (73%) of Canadians plan to leave an inheritance, with many also passing down property, investments or businesses. At the same time, about one in five Canadians expect to leave behind debt, according to the survey.

For younger generations, expectations are high. More than half of Gen Z and Millennials anticipate receiving a cash inheritance, while roughly two in five expect real estate or investments to be part of their future wealth.

Estate and trust advisors say proactive planning can reduce strain.“Fostering open communication among the generations about wealth, legacy plans and shared family goals and values is an important step,” Lydia Potocnik, Vice-President, Estate and Trust Services at BMO Private Wealth, said in the release.

The survey also sheds light on the pressures of the“sandwich generation” - Canadians supporting both aging relatives and children at the same time. Nearly two in five (37%) are responsible for the well-being of elderly parents or in-laws, while 15% are simultaneously raising kids at home.

Financial advisors warn that this dual burden can erode savings if boundaries aren't set. BMO offers a list of recommendations for families navigating these challenges, including building multi-generational budgets, establishing clear limits around financial support and prioritizing retirement planning.

“While support can make a meaningful difference, it is important to strike a balance between generosity and protecting your own long-term financial health,”, Anthony Tintinalli, Head, Specialized Sales at BMO, said in a statement.

"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."

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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