Most parents avoid crucial money talks that could shape their kids' futures
Canadian parents are increasingly anxious about their children’s financial prospects, but many are avoiding the very conversations that could make a difference.
RBC’s new Talking Money with Our Kids poll found that 53% of parents with teens and young adults aged 13 to 24 are worried or even “fearful” about their kids’ financial future, but most are delaying discussions about money.
Over one-third (36%) are waiting for “the right time,” while 21% prefer to let their children raise the topic. Another 16% have yet to discuss it at all. However, 71% of respondents say stress over both their own and their children’s finances is now affecting their wellbeing.
“Over half of the parents we surveyed mentioned they didn’t feel very confident about approaching conversations with their children about their financial future, which can make even thinking about this topic stressful,” explains Lucianna Adragna, Vice President, Client Segments, Everyday Banking, RBC. “It’s so important to get this conversation started, so parents can help their children build their financial confidence. Otherwise, parents are missing a crucial opportunity to help set their children up for a successful financial future as adults.”
Younger Canadians face unique pressures that make financial literacy more essential than ever.
RBC’s Cost of Keeping Up report shows 64% of young adults say social media leaves them feeling financially behind, while 55% feel inadequate even when their finances are sound.
“I know how heavily social media pressures can weigh on young people – particularly the generation that has grown up within a highly digital world – and these pressures can negatively influence how they manage their money,” Adragna adds. “Here again is where parents can play an important role in helping these young adults build the confidence to make their own decisions and not be swayed by what they are seeing on social media.”
The poll also revealed that 43% of parents aren’t using any tools or don’t know where to find resources to support financial education at home. That’s a troubling gap when economic stress, online influence, and inflation are already shaping how the next generation learns about money.
“Parents don’t need be experts,” Adragna notes. “They just need to lean into trusted resources... What matters most is to begin talking about money early and often, so it becomes a comfortable topic to raise any time – not just at key life moments or when the need arises.”
The report highlights a potential opportunity for advisors to provide information to help parents have money conversations with their children and to include them in client meetings if appropriate.
