Pollara Strategic Insights surveyed 1,517 Canadian adults between August 15 and 16, to better understand their money transfer habits since the start of the pandemic.
It revealed that 25% of Canadians aged 18 to 34 had received or given a financial inheritance since March 2020, compared to a national average of 14% for all age groups. Although they are the age group most likely to receive money, the survey found that they send more wealth transfers than their older counterparts.
Fourteen percent of Gen Z and Millennials have sent money transfers, compared to 1% of respondents aged 35-54 and 4% of respondents over 55.
“We’ve all heard of the ‘mom and dad bank’ supporting the younger generation through wealth transfer, but our data demonstrates a strong willingness among the younger generation to reciprocate,” Julie Petrera, senior strategist at Edward Jones, the financial agency that commissioned the investigation, said in a Release.
Motivational differences were also observed to change with age.
Younger generations have used wealth transfers to meet immediate demands. These include those related to: personal finances (38 percent), including job loss or health care expenses; the economy (33 percent), including inflation; major purchases (25 percent), including house or car purchases; and major life events (18%) such as having a child.
The death of a family member or acquaintance accounted for 51% of wealth transfers for older cohorts (those aged 55 and over) and 63% for those aged 35 to 54. By comparison, this reason only accounted for 28% of millennials and Gen Z respondents.
A report released last year by IG Wealth Management revealed that 72% of parents surveyed were willing to help their children buy a first homegiving an average of $145,000 per child.
The majority of Canadians (54%) aim to leave a legacy, or at least part of a legacy, in their lifetime, according to the recent survey. Ensuring their inheritance is dispersed without challenge (34%) and providing immediate financial comfort to a friend or family member are the two variables most likely to impact this choice (27%).
However, this represents a significant drop from last year, when 65% of Canadians said they wanted to leave a legacy.
While inflation in Canada remains high, it has also been seen that young Canadians have suffered many financial blows.
A survey conducted last month by Finder.com found that 27% of millennials between the ages of 27 and 41 said to go into debt to pay for expensesclosely followed by 26% of Gen Z respondents aged 18-26.
Gen Z respondents were four times more likely to consider moving for lower housing costs than Baby Boomers, at 12% versus 3%.
“(The survey results) are a timely reminder that our strategic approach to finance should not be defined by what is considered normal or traditional, but by what matters most to you,” Petrera said.
“Your unique circumstances, goals, and priorities should be the foundation for these important financial decisions.”