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
CALGARY, Nov. 13, 2013 /CNW/ - With the school year in full swing and the holidays right around the corner, financial strains are at the forefront of many Canadian families' minds. A new study of Canadian parents conducted by Ipsos Reid on behalf of MNP Ltd., reveals that while most parents believe they are more than competent financial role models for their children, a sizeable portion believe that how they handle their finances is having a negative impact on their children.
More than half (56%) of Canadian families avoid discussing family finances, including financial problems with their children. In addition, three in four parents noted that their children do not ask questions about money and the family finances. This opens up a door for parents to begin teaching their children about money management. Across Canada, November is Financial Literacy Awareness month; an initiative strongly encouraged by MNP Ltd. The goal is to get parents talking to their children about family finances before financial strains adversely affect their children's future.
"Engaging youth early is key to ensuring poor money management habits do not form," says Grant Bazian, President, MNP Ltd. and bankruptcy trustee. "By the time we see individuals in the bankruptcy process it's often too late. Proper financial literacy skills learned early on could help a substantial number of Canadians avoid financial difficulties, including bankruptcy and insolvency later in life."
While many parents consider themselves effective money managers and role models, this does not mean that a sizable segment of parents don't have their fair share of concerns. One of the biggest concerns is the effect of a parent's money strain on their relationship with their children. One in five (20%) agree that their relationship with their children has been impacted or strained by their current financial situation.
"Our goal is to provide a sense of urgency to parents; we encourage them to address their financial issues and talk to their children about money management to ensure lifelong financial literacy," says Bazian, President, MNP Ltd.
Other Survey Highlights:
- One quarter (23%) of parents agree that their children asking them questions about money and the family finances causes them anxiety.
- Two in five (36%) of Canadian parents feel their current financial situations are affecting their children's perception of money management.
- One in ten Canadian parents either regularly have a hard time making all debt payments on time (7%) or have fallen behind on their debt payments (6%).
- More than half (63%) are concerned with the costs of their children's post-secondary education and how it will affect their current level of debt.
Background about the study
The poll was conducted by Ipsos Reid for MNP Ltd. between September 18th to 24th, 2013. A sample of 1,002 Canadian parents (485 fathers and 417 mothers) was surveyed in an online interview. This poll is accurate within +/- 3.5 percentage points 19 out of 20 times.
To learn more about this research, please visit http://www.mnpdebt.ca/next-generation
About Financial Literacy Awareness Month The Financial Literacy Action Group (FLAG) is a coalition or seven organizations that work to assist and improve the financial literacy of Canadians. The participating organizations are:
ABC Life Literacy Canada
Canadian Foundation for Economic Education (CFEE)
Credit Canada Debt Solutions
Financial Planning Standards Council (FPSC)
Investor Education Fund (IEF)
Social and Enterprise Development Innovations (SEDI)
About MNP Limited
For more than 50 years, MNP Ltd. has helped individuals resolve their financial problems by offering life-changing debt solutions tailored to each person's unique situation. With government licensed Trustees located in more than 70 offices in British Columbia, Alberta, Saskatchewan, Manitoba, Quebec and Ontario, MNP Ltd. offers great depth of Canadian consumer and corporate insolvency expertise to those experiencing financial difficulty. For more information, visit www.MNPdebt.ca.
SOURCE: MNP LLP
For further information:
Media Relations Advisor
Senior Vice President of Marketing