Canadian Parents Know Less Than They Think They Do About Child's Post-Secondary Spending

Majority (55%) of Students Have Hidden How Much They Spend From Parents

22 July 2014

Trends & Prospective

Toronto, ON - When it comes to knowing about their children's debt and post-secondary spending habits, a new survey conducted by Ipsos Reid on behalf of RBC reveals a concerning disconnect between parents and their children when it comes to money matters at school.

Nine in ten (90%) parents `agree' (49% strongly/42% somewhat) that they know roughly how much debt their children have, compared to only three quarters (78%) of students who similarly `agree' (34% strongly/43% somewhat) that their parents have an awareness of their debt level.

Perhaps even more alarming is the revelation of a wider gap between parents and children when it comes to having to hide expenses. A majority (55%) of students `agree' (19% strongly/36% somewhat) that they have sometimes hidden how much they spend money from their parents so they wouldn't have to justify the choices to them, compared to only one in three (33%) parents that `agree' (6% strongly/28% somewhat) that their children have hidden their expenses from them so as to not have to justify them.

Three in four (76%) students `agree' (24% strongly/53% somewhat) that they are confidence in their ability to manage their finances, although even more (87%) `agree' (40% strongly/47% somewhat) that they still have a lot to learn about managing finances.

Interestingly, more parents (89%) `agree' (39% strongly/50% somewhat) that they have been a good financial role model for their children, compared to just four in five (80%) students who similarly `agree' (40% strongly/41% somewhat).

Talking to their children may help alleviate worry and stress, from both parent and child, considering the experience mom and dad have with managing their own expenses. Parents (57%) are less likely to worry that their children's savings will not cover all of his/her school expenses, while students (71%) are more likely to have this worry. Students are also more anxious about taking on debt than their parents think they are (69 per cent versus 60 per cent of parents).

These are some of the findings of an Ipsos Reid poll conducted between June 6th to 20th, 2014 on behalf of RBC. For this survey, a sample of n=1,180 students (aged 17 to 24 as of September 2014) and of n=971 parents of students in post-secondary education was interviewed online. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within +/- 3.3 percentage points had all Canadians students aged 17-24 been polled, and within +/- 3.6 percentage points had all parents of post-secondary education been polled. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

For more information on this news release, please contact:

Sean Simpson
Vice President
Ipsos Reid
Public Affairs
(416) 572-4474
[email protected]

About Ipsos Reid

Ipsos Reid is Canada's market intelligence leader, the country's leading provider of public opinion research, and research partner for loyalty and forecasting and modelling insights. With operations in eight cities, Ipsos Reid employs more than 600 research professionals and support staff in Canada. The company has the biggest network of telephone call centres in the country, as well as the largest pre-recruited household and online panels. Ipsos Reid's marketing research and public affairs practices offer the premier suite of research vehicles in Canada, all of which provide clients with actionable and relevant information. Staffed with seasoned research consultants with extensive industry-specific backgrounds, Ipsos Reid offers syndicated information or custom solutions across key sectors of the Canadian economy, including consumer packaged goods, financial services, automotive, retail, and technology & telecommunications. Ipsos Reid is an Ipsos company, a leading global survey-based market research group.

To learn more, please visit www.ipsos.ca.

About Ipsos

Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. Ipsos ranks third in the global research industry.

With offices in 86 countries, Ipsos delivers insightful expertise across six research specializations: advertising, customer loyalty, marketing, media, public affairs research, and survey management.

Ipsos researchers assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media and they measure public opinion around the globe.

Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of e1,712,4 million (2 274 M$) in 2013.