Debt hurts families

Almost half (44%) of Canadian parents are concerned about how their children would be affected if they weren’t able to reduce their amount of debt.

A study of Canadian parents from debt-assistance firm MNP Ltd., shows that while most parents believe they’re competent financial role models for their children, many believe that how they handle their finances is having a negative impact on their children.

Read: Canadians are addicted to spending

More than half (56%) of Canadian families avoid discussing family finances, including problems, with their children. Three in four parents noted that their children do not ask questions about money and the family finances.

One of parents’ biggest concerns is the effect of their money strains on their relationships with their children. One in five say their relationship with their children has been impacted or strained by their current financial situation.

Survey highlights:

• 23% of parents agree that their children asking them questions about money and family finances causes them anxiety.
• 36% of parents feel their current financial situations are affecting their children’s perception of money management.
• 7% of parents either regularly have a hard time making all debt payments on time or have fallen behind on their debt payments (6%).
• 63% are concerned with the costs of their children’s post-secondary education and how it will affect their current level of debt.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.