Economists note Canadian families are rethinking financial security
A new report from BMO Financial Group suggests Canadian families are increasingly relying on one another to weather economic uncertainty, with parents and grandparents stepping in to provide financial support to younger generations.
The BMO Real Financial Progress Index, released last week, found that nearly half of Canadian parents and grandparents (45%) plan to financially support their adult children or grandchildren within the next year. This comes as more than one in five Gen Z Canadians (22%) say they rely on family assistance to cover general expenses, while 16% expect help with student loans and 13% anticipate aid for child-related costs.
“The Canadian labour market has weakened considerably in recent years,” said Shelly Kaushik, senior economist at BMO. She noted that the youth unemployment rate rose to 14.5% in August, more than twice the national rate of 7.1%. “Wage growth for this group has also cooled significantly, at 1.2% year over year in August compared to 3.2% for all workers,” she added.
The survey also highlighted shifting expectations around inheritance and wealth transfer. Nearly three quarters (73%) of Canadians intend to leave an inheritance, while over half of Gen Z (53%) and Millennials (51%) expect to receive one. Nearly one in five Canadians (19%) expect to pass down debt.
“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 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 report also examined the challenges faced by the so-called “sandwich generation,” with 37% of Canadians responsible for caring for aging parents or in-laws and 15% simultaneously raising children. More than half (52%) of Canadians expect children to support their parents in retirement, but 78% worry about saving enough for their own future.
According to Lydia Potocnik, vice-president of estate and trust services at BMO Private Wealth, estate planning plays a key role in preparing families for these pressures. “Fostering open communication among the generations about wealth, legacy plans, and shared family goals and values is an important step,” she said.
The BMO survey was conducted by Ipsos between June 10 and July 17, 2025, with a sample of 2,501 Canadian adults.
