Parents of adult children may be watching their personal savings slip away.
A CIBC poll finds about 25% of Canadian parents are spending their own money to help support their adult kids, to the tune of $500 or more per month.
And 66% are feeling the effects, and having to delay retirement, cut back on travel and other personal expenses because of it.
The money is being used to cover their kids rent, cell phone bills, vehicle payments or groceries.
The most recent data from Statistics Canada found 42% of 4.3 million adults (20-29 yrs) lived at home, compared with 32% in 1991, and 27% in 1981.
“Living at home temporarily can be a smart way for young adults to save for the future or pay down student loans, and we know that many parents want to help out their adult kids. These extra costs can be a burden that delays or prevents parents from meeting financial goals such as retirement, and that’s why both parents and kids need to be mindful of their budgets.” – Christina Kramer, Executive Vice President of Retail and Business Banking at CIBC.