There’s a smart way to shut down the bank of mom and dad

The Globe and Mail – By Kira Vermond

Forget asking for keys to the family car. Now, some adult children are soliciting parents for cash to pay for wheels of their own.

But is it any wonder why millennials are turning to the bank of mom and dad to bankroll everything from car payments and mortgages to day-to-day expenses such as phone bills and dental fees? Faced with mounting student loans, sky-high housing costs and lacklustre salaries, launching into early adulthood can seem downright overwhelming. Particularly in high-cost markets such as Vancouver and Toronto, asking parents and grandparents for a handout can even mean the difference between paying rent and not.

“It comes up all the time,” says Ngoc Day, a registered financial planner with Macdonald, Shymko & Company Ltd., a fee-only firm in Vancouver. “There’s a perception that the seniors are very wealthy because the real estate has done so well.”

 

Parents are often willing to acquiesce to the requests, even if they’re not rolling in real estate dough.

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