Jun 16, 2017
Pattie Lovett-Reid: Avoid the 'Bank of Dad' this Father's Day
While we often talk about the Bank of Mom and Dad, but a new survey from TransferWise found 34 per cent of Canadian fathers want their children to call about things other than money.
The survey looked at the financial relationship between Canadian fathers and their adult children. I reached out to TransferWise to see if they asked if fathers minded paying? It appears they didn’t ask that question specifically, but the fact that 34 per cent want their children to call about things other than money is very telling.
The desire to be more than an ATM is a strong one, and while many families don’t mind offering to help, the frustration lies in the expectation to help. We have refer to this in the past as economic outpatient care a term coined by Thomas Stanley, author of The Millionaire Next Door. Children are living beyond their means and dads are footing the bill well into their adult children’s lives. And contrary to popular belief, it’s not just the younger millennials (13-25) seeking support; the older end of the millennial generation from 25 up to 30+, are also asking for their hand out.
Additional findings from the survey:
Father’s Day-specific data points
- 38% of Canadian fathers expect to receive a card or call on Father’s Day
- 38% of Canadian fathers expect to receive a gift or gift card for Father’s Day
- 34% of Canadian fathers want their children to call about things other than money this Father’s Day
Financial support from fathers
- Fathers are the primary giver of money within the family, with 43% stating their child is more likely to ask them for money over their mom.
- 45% of fathers in Canada support children between the ages of 18-22 years old.
- Notably, more than one third (38%) of fathers financially support their children between the ages of 23-30.
- 31% of fathers support their children between the ages of 25-35
- 13% of fathers financially support their children aged 30-35+
What do fathers help their children pay for?
- 36% of fathers contribute to their children’s tuition or student loans
- 30% contribute to their rent, car/transportation or utility bills (cell phone/insurance)
How much money do fathers typically give their children for financial support?
- Almost half (41%) of Canadian fathers typically contribute between $200 and $1,000 monthly to support their children over the age of 18.
For father’s spending between $200-$500 a month:
- 29% are spending it on children aged 18-22
- 26% are spending it on children aged 25-30
- 25% are spending it on children aged 23-25
- 21% are spending it on children aged 30-35
- 17% are spending it on children aged 35+
