A growing number of young Canadians are leaning on their parents and grandparents for financial help as the cost-of-living crisis deepens, according to a new report from BMO. The study, part of the Real Financial Progress Index, reveals that nearly half of Canadian parents, guardians, and grandparents expect to provide financial assistance to their children or grandchildren in the next year.
The report points to the emergence of what it calls the “sandwich generation,” a group of Canadians facing pressure from both directions — supporting their aging parents while simultaneously helping their children manage soaring expenses and bleak job prospects. The weight on family budgets is only expected to grow.
The findings show that 22 per cent of Gen Z and 15 per cent of Millennials are depending on parents to cover basic living costs. At the same time, 88 per cent of surveyed parents expressed serious concern about their children’s financial future, citing inflation, education costs, and limited career opportunities as major worries.
For many families, this support is not a short-term fix. Nearly one-third of parents say they will continue helping their children financially for as long as they are able, regardless of age. Yet even with this generosity, the report warns that about half of Gen Z and Millennials will one day find themselves responsible for caring for their parents as they reach retirement.
The financial tug-of-war paints an uncertain picture for the future, as young Canadians struggle to gain independence while parents stretch their resources to cover multiple generations.