A recent poll from the Royal Bank of Canada (RBC) outlines that despite what parents think, young adults today are quite engaged in their finances as they face high inflation and cost of living.
According to RBC’s findings, 59 per cent of young adults aged 18 to 24 said they are very or extremely engaged in their finances, while 47 per cent of parents think they are.
The survey also discovered that young adults who reported being engaged in their finances were more likely to be confident in their ability to save (83 per cent) and invest (60 per cent), as well as experienced increased feelings of financial responsibility (82 per cent).
“The survey shows that young adults today are working hard to secure their financial future,” reads a statement from Jason Storsley, senior vice-president of Everyday Banking and Client Growth at RBC.
“They have both an optimistic and pragmatic view of the future, acknowledging the obstacles but looking to harness opportunities with more resilience than they are perhaps given credit for,” added Storsley’s statement.
There were several gaps in perception among parents, including young adults’ attitudes around finances.
For example, 32 per cent of young adults are saving for a house, and 19 per cent are already saving for retirement, while only 23 per cent and 12 per cent of parents think this is the case.
83 per cent of young adults said financial stability is key for overall happiness, nearly 83 per cent said they need more information and support on money management, and 68 per cent reported feeling overwhelmed and needing help.
However, parents underestimated these feelings, which highlights a valuable opportunity for parents to become involved earlier in their children’s financial journey.
Young adults also identified different challenges than those faced by their parents’ generation.
Over 70 per cent of young adults believe their biggest challenge is the cost of living, followed by inflation, and saving for a home.
On the other hand, parents found their main challenges as young adults to be finding a job that pays well, finding a job they like, and saving for a mortgage.
Comments