A new poll conducted by RBC shows that there is a noticeable perception gap between parents and young adults about personal finance.
The poll, which surveyed both parents and young adults aged 18 to 24, found that the majority of young adults (59%) are “very” or “extremely” involved in their finances, especially when they facing high inflation and rising cost of living.
Young people said they were more likely to be confident in their ability to save (83%) and invest (60%), and feel more financially responsible (82%).
“They have an optimistic and pragmatic view of the future, acknowledging obstacles but seeking to exploit opportunities with greater resilience than they could possibly be given,” said Jason Storsley, senior vice president. on banking and customer growth at RBC, said in a news release.
The survey also shows that many young people are taking action to achieve their long-term financial goals while their parents may not know they are doing so. For example, when it comes to saving for a home or retirement, one-third (32 percent) and one-fifth (19 percent), have done so. However, only 23% think their children are saving for a home and 12% for retirement.
The survey results also show that the majority (83%) of young people consider financial stability the key to overall happiness. Additionally, 83% say they need more information and support on money management and 68% feel overwhelmed.
The RBC survey also highlights that over 70% of young adults consider cost of living their biggest challenge, followed by inflation and saving to buy a home while parents say the main challenges are: their youth is to find a high-paying job, find a job they enjoy, and save up for a mortgage.
In addition, 68% of young people said they want to work part-time to earn extra income and 51% said they look forward to working for themselves or becoming an entrepreneur at some point. However, only 44% and 35% of parents, respectively, said they thought their children would follow these business paths.
The survey was conducted on June 16 and 21 this year with the participation of 1,018 young Canadians and 510 randomly selected parents.