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'Bank of Mom and Dad': Affluent families giving average of $145K for kids' first home, report finds


NORTH BAY - Children from many affluent families are receiving "significant funding" from the "Bank of Mom and Dad" for post-secondary education, a first home and new businesses, a study of high-net-worth households has found.


The report, by IG Private Wealth Management, on affluent Canadians and wealth transfer found those with at least $1 million in investable assets have been "reconsidering their finances in ways that prioritize not only their children but the world around them," a news release Tuesday said. That includes giving each child, on average, $145,000 towards the purchase of a first home, the report said.


"Increasingly, Canadian families are viewing wealth created by older generations as family assets, and as means to help their children and grandchildren enjoy a more secure financial future," IG Wealth Management president and CEO Damon Murchison said in a statement.


"However, many parents are also concerned about how and when to leave money to the next generation."


PARENTS WANT TO HELP CHILDREN 'GET AHEAD'


Over the next decade, the report says it is estimated that assets in motion between generations of Canadian families will be approximately $1.2 trillion.


IG cites figures showing that the number of households in Canada with at least $1 million in investable wealth rose to 913,000 at the end of 2020 from 471,000 in 2006, with the total amount of wealth rising to $4.2 trillion from $1.6 trillion.


Among the key findings in the report: 77 per cent of those surveyed say they want to help their children "get ahead," while 86 per cent say they plan on providing financial support — more than $35,000 on average — for children attending college or university.


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