Financial pressures, stresses and consumer sentiments about financial planning are all discussed with those who could be clients, in the most recent round up of consumer surveys published recently, this time by RBC Royal Bank, the Canadian Credit Union Association Cooperative and Embark Student Corp.

The credit union association notes that Millennial and Generation Z Canadians are more likely to report poorer financial health when their responses are compared to those from older generations. Many lack emergency savings and a noticeable percentage are delaying major life decisions due to their financial constraints. More, they say respondents under age 55 report greater dissatisfaction with the available planning services. This, they say, underscores the need for more customized financial advice. 

Dissatisfaction with financial planning services 

“Younger demographics show greater dissatisfaction with the financial planning services available to them, indicating a need for more tailored financial advice,” they write. Advocating for personalized services, they add that “younger members appreciate financial institutions that understand and respond to their specific challenges.”

The differences in financial stability and planning across age groups was the subject of the 1,639-respondent survey which also found a significant amount of financial worry among those being polled.

Among all survey respondents, they say only 13 per cent strongly agree that their financial institution cares about their financial well-being, 25 per cent worry about finances all the time, 32 per cent have avoided personal health services because of cost and 22 per cent have no emergency savings. In this particular survey, they add that 59 per cent lack a detailed financial plan and 63 per cent had no dedicated financial advisor.

Among younger Canadians, those between 18 and 34 report worrying about personal finances all the time while 26 per cent those between 35 and 54 report the same. Over age 55 that number drops to 20 per cent.

Disparities in financial wellness 

“The disparities in financial wellness and planning across generations underscore the need for financial institutions to offer more personalized and supportive services,” they write. “Millennials and Gen Z, in particular, face unique financial challenges that require focused attention and solutions.” 

One challenge the cohorts are faced with is housing, pressuring both younger generations who struggle with affordability and older generations who would help them with their first home purchases.

According to RBC’s 30th annual Home Ownership Poll of 2,824 Canadians under age 64, more respondents today say they are planning to buy a home in the next two years, believing it to be a good investment. At the same time, however, 50 per cent are saving less due to inflation. Among new homeowners, 58 per cent are worried about covering the costs of home ownership, a concern expressed by 66 per cent of second-time home buyers.

RBC’s report states that 60 per cent under age 65 believe owning a house or a condo is a good investment. This is up from 53 per cent in 2023. Of those surveyed, 29 per cent are looking to buy a home in the next two years, up from 22 per cent a year ago.

Support from family 

Notably, 62 per cent said financial support from family would be necessary to realize their homeownership plans. “Support from family might not always be available with 39 per cent of respondents saying they want to give family members money for housing or rent, yet can’t afford to do so,” RBC researchers state. “The majority (54 per cent) also say they would prefer to have their child or family live with them to help save money rather than provide financial support.” 

Finally, education is the subject of a third poll, this time from education savings company, Embark Student Corp. Conducted by Léger, the 1,000-respondent survey found that 61 per cent believe supporting their child’s education is more important than their own financial health.

Cutting out day-to-day necessities 

“Canadian parents are putting themselves under immense financial and emotional stress to provide monetary support for their children’s post-secondary education,” they warn. “The rising cost of living means that many are cutting out day-to-day necessities just to make ends meet and are unable to save as much as they hoped for their child’s education. As a result, parents are choosing to provide financial support for their children at the cost of their own financial and mental well-being.” 

The survey found that 90 per cent believe a post-secondary education is expensive, 54 per cent dread paying for it, but 64 per cent said they would feel like a failure if their children needed to incur significant debt to pursue post-secondary education. The survey found that 82 per cent thought it was their responsibility to help their children in this respect.

“Nearly two-thirds (61 per cent) of Canadian parents believe supporting their child is more important than their own financial health and 58 per cent would rather take on debt themselves.” They add that 66 per cent said they planned to postpone their retirement to help their children obtain an education.