Parenting & Family

Are you one of those who are still helping your kids ages 30 and above?

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  • Apr 15th, 2019 5:05 pm
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[OP]
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Are you one of those who are still helping your kids ages 30 and above?

I know it's but a sliver, coming from a RBC survey.

I guess giving our children a legs up is more common than we thought.

Parents financially supporting thirtysomething kids? It’s happening
https://www.theglobeandmail.com/investi ... happening/

We’re in a new age of parenting where it’s common to support your children financially until well into their 30s.

A survey released Thursday commissioned by Royal Bank of Canada found that 96 per cent of parents were subsidizing children aged 18 to 35 and 48 per cent were still helping kids age 30 to 35. RBC raises the question of whether parents are helping their kids with money that should be going into their retirement saving, which is valid.

“It puts some pressure on people, financially,” said Rick Lowes, vice-president of retirement strategies at RBC. “It may mean people will end up working longer, and maybe that they’ll outlive their money or have health care expenses that come towards the latter part of their life that haven’t been accounted for.”

But there are broader questions here than whether people are putting their retirement at risk: Just how long are parents supposed to help their kids financially, and why is this even necessary?

Part of the story here is that the baby boomer generation has, as a group, done well career-wise and in the housing market. In the RBC survey, 88 per cent of the 1,004 parents of millennial children (aged 18 to 35) said they were happy to be in a position to help their children.

The average amount of help was $5,623 for parents of children aged 18 to 35, which doesn’t seem exceptional when you consider that it includes help with college or university costs as well as cellphone bills and living expenses. It’s been quite normal to help late teens and twentysomethings like this. But thirtysomethings?

The RBC survey found that the average amount of support to this age group from parents was $3,729. That’s a substantial amount for an age bracket that should have progressed to the point of financial independence from mom and dad.

Some will say that young adults are in this position because they are spoiled, entitled and lazy. They should talk to some parents of millennials. In the survey, 86 per cent of parents said they feel it’s very difficult for young adults starting out today to make ends meet, and 53 per cent said their children are struggling to become financially independent.

We should be staggered by this – more than half of young adults today are struggling to pay their own way. What’s going wrong?

Mr. Lowes said expensive houses and rents in some cities are a factor. The average amount of annual parental financial help in British Columbia and Ontario was $6,818 and $6,694, respectively. Vancouver and Toronto are the country’s most expensive housing markets, and surrounding cities are pricey as well. In the other regions, the average ranged from a low of $3,941 in Atlantic Canada to $4,977 in Alberta.

The rising cost of a postsecondary education may also be a reason why it takes longer to become financially independent. Statistics Canada numbers show that average undergrad tuition rose by 3.7 per cent annually over the past decade or so, while inflation was 1.7 per cent. In the RBC survey, 69 per cent of parents said they provided financial support for education.

The cost of living today is higher as well, notably because of technology such as smartphones. The RBC survey found that 58 per cent of parents helped their children aged 18 to 35 with cellphone bills. Quebec was an outlier – only 46 per cent of parents there helped pay cellphone bills.

A bank such as RBC makes huge amounts of money by selling investments, so it’s natural for it to be raising concerns about parents diverting money to their adult children at the expense of their registered retirement savings plans. Roughly one-third of parents in the RBC survey said that subsidizing their adult children has or would affect their retirement savings and delay retirement plans.

Worst case, today’s parents who overextend themselves to help their adult children become dependent on those kids later on for financial help. Familial financial obligations get ever more complicated in the new age of parenting.
Last edited by alanbrenton on Feb 28th, 2019 5:13 pm, edited 1 time in total.
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If my kid is a lazy sack of shit, probably not.
As a result of hard times, due to health, most definitely and for however long I'm still alive.
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What the f*** did I just read?!

I'm not shooting the messenger @OP, just WTF?!

This society is not worth living in anymore.
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I think a huge difference, and it's kinda mentioned already. For one, schooling beyond grade 12 is a must now. My dad had a grade 8 education and was able to work full-time and get himself a trade. My mother had grade 10 and was in nursing. I remember my first job (grade 9) and what I did back then now requires additional education beyond grade 12. So kids are going to school longer, and are getting jobs much later than our parents and grandparents. Housing is also incredibly expensive. It used to be dad could work FT, buy a house, buy a car, and mom would stay home and keep things running smoothly. Very few can afford to buy houses, especially on a single income, at a young age.

Society has changed. Both parents work. Parents divorce.

Other factors too: Families are smaller, so perhaps parents have more ability to help their offspring. Imagine supporting 4, 5 or 6 adult children from years past, versus support 1 or 2 kids today!

As also mentioned, monies are spent on additional things that our parents didn't worry about. My grandparents had TV with a roof antenna and telephone. Expense was probably equivalent of about $40 in todays money. Today, we have internet, cell phone, many still have cable and if not, other forms of paid entertainment (Netflix). And it's not like we can live without many of that stuff, everything is done online.

Other things are also expensive. At one time, going to a movie wouldn't break the bank, especially popcorn and pop. Going to a sporting event (hockey, baseball, etc) wasn't crazy expensive either.

Also lost is the art of cooking, so people eat our more, which is not cheap. So many factors why things have changed and why kids need help.

It is what it is.
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Pretty sad, but most kids are graduating into unemployment and underemployment these days. Hardly their faults, especially if they pursued education for which they were told that such would be immensely useful. Like engineering, for example.

Meanwhile we have wealthy boomers who refuse to stand down from their jobs, and even worse, when they do stand down, they seek out the absolutely cheapest replacements possible. I was just reading the other day of a boomer who admitted to being worth $12M, but was still, until recently, employed by the Government of Alberta in a position that a younger person could have easily performed.
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burnt69 wrote:
Mar 1st, 2019 3:08 am
Pretty sad, but most kids are graduating into unemployment and underemployment these days. Hardly their faults, especially if they pursued education for which they were told that such would be immensely useful. Like engineering, for example.

Meanwhile we have wealthy boomers who refuse to stand down from their jobs, and even worse, when they do stand down, they seek out the absolutely cheapest replacements possible. I was just reading the other day of a boomer who admitted to being worth $12M, but was still, until recently, employed by the Government of Alberta in a position that a younger person could have easily performed.
Engineering, especially mechanical and electrical are heavily sought after in my industry.
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Many people who get married, are also doing so later in life than in the past. Many parents help their kids pay for their wedding. I assume this factors into these averages as well.
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vkizzle wrote:
Mar 1st, 2019 8:21 am
Engineering, especially mechanical and electrical are heavily sought after in my industry.
I know many people who believe otherwise, and have lots of underemployment and unemployment to back that up. The OSPE additionally found very high rates of engineering underemployment: https://www.ospe.on.ca/public/documents ... market.pdf . Higher-spec talent seems to be the worst affected as the employers simply aren't interested in hiring "the best" or paying for talent.
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Aug 31, 2014
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burnt69 wrote: Pretty sad, but most kids are graduating into unemployment and underemployment these days. Hardly their faults, especially if they pursued education for which they were told that such would be immensely useful. Like engineering, for example.

Meanwhile we have wealthy boomers who refuse to stand down from their jobs, and even worse, when they do stand down, they seek out the absolutely cheapest replacements possible. I was just reading the other day of a boomer who admitted to being worth $12M, but was still, until recently, employed by the Government of Alberta in a position that a younger person could have easily performed.
This is true! I've also heard of teachers who have retired and be still on the substitution list, who's taking away job opportunities for younger teachers.
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burnt69 wrote:
Mar 1st, 2019 10:52 am
I know many people who believe otherwise, and have lots of underemployment and unemployment to back that up. The OSPE additionally found very high rates of engineering underemployment: https://www.ospe.on.ca/public/documents ... market.pdf . Higher-spec talent seems to be the worst affected as the employers simply aren't interested in hiring "the best" or paying for talent.
May be regional.
This year we are working with UBC and have hired and brought over 6 Co-op students.
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burnt69 wrote: I know many people who believe otherwise, and have lots of underemployment and unemployment to back that up. The OSPE additionally found very high rates of engineering underemployment: https://www.ospe.on.ca/public/documents ... market.pdf . Higher-spec talent seems to be the worst affected as the employers simply aren't interested in hiring "the best" or paying for talent.
From the report "
By a wide margin, employed individuals with bachelor’s degrees or higher in engineering did not work in their field of study compared with those with medical, law, nursing or education degrees. The percentage of people with engineering degrees who actually worked as engineers or engineering managers was lower in Ontario than in any of the five provinces to which it was compared, and Canada as a whole. In Ontario, just 29.7 per cent of individ- uals with engineering degrees worked as engineers or engineering managers. This compares with almost 46 per cent of similarly educated individuals in Alberta, for instance"

So it's true though, that most engineers don't work in engineering, but that's different from them being "unemployed". In my field of work too, we like hiring engineers because of their thought process and problem solving skills, but they don't need to have studied this specific field of engineering.

Full disclosure: I work in IT and is a chemical engineer (thus I would have been included in that report as underemployed). And I like hiring other engineers. Smiling Face With Open Mouth And Tightly-closed Eyes
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vkizzle wrote:
Mar 1st, 2019 11:01 am
May be regional.
This year we are working with UBC and have hired and brought over 6 Co-op students.
That doesn't help the large numbers of Canadian graduated engineers, now does it? Or the foreign-trained ones. See my previous comment, ie: when the boomers hire, they want to hire the cheapest. The students who do the co-ops are not bottom of the barrel, but they're not usually top talent either.

Full disclosure: I work in IT and is a chemical engineer (thus I would have been included in that report as underemployed). And I like hiring other engineers.
Working in IT may very well be considered an engineering-field-appropriate job per that report. Depending on your job title. Not to devolve this thread into one of the horrific job prospects of engineering and STEM talent, but its fairly clear that student expectations are quite different from reality. And that unrealistic and fake expectations are fed to young people by various media sources, and even guidance counsellors who grew up in a different era and have not examined recent statistical data such as found in that OSPE report.
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burnt69 wrote:
Mar 1st, 2019 11:12 am
That doesn't help the large numbers of Canadian graduated engineers, now does it? Or the foreign-trained ones. See my previous comment, ie: when the boomers hire, they want to hire the cheapest. The students who do the co-ops are not bottom of the barrel, but they're not usually top talent either.
I'm not sure how that doesn't help?
Having a Co-op program and working with Universities all across Canada, shows that this field is alive and well.
While it doesn't guarantee placement, it provides real world work experience.
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vkizzle wrote:
Mar 1st, 2019 11:20 am
I'm not sure how that doesn't help?
Grads need jobs. Co-ops do not hire grads.
Having a Co-op program and working with Universities all across Canada, shows that this field is alive and well.
Not really. It just shows that you're looking for cheap labour.
While it doesn't guarantee placement, it provides real world work experience.
So does hiring grads. Except they cost more. Proving my point, its all about trying to hire the cheapest possible replacements for retiring boomers.
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burnt69 wrote:
Mar 1st, 2019 11:25 am
Grads need jobs. Co-ops do not hire grads.

Not really. It just shows that you're looking for cheap labour.

So does hiring grads. Except they cost more. Proving my point, its all about trying to hire the cheapest possible replacements for retiring boomers.
Lol, you must have had a bad experience.
This program works well for my company, the Universities and the students and I'm glad that I'm able to be a part of it.

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