Monday, October 31, 2011

Canada's Sandwich Generation making many sacrifices to support both children and aging parents

Credit Canada and Capital One Canada offer insights about financial literacy in conjunction with 5th annual Credit Education Week

TORONTO, October 31, 2011 /Canada NewsWire/ - Canadians who are part of a growing Sandwich Generation are being required to make more sacrifices in order to financially support both their children and aging parents. A new survey by Credit Canada and Capital One Canada for Credit Education Week found that a surprising 4 in 10 Canadians (39%) in the Sandwich Generation are concerned they might not be able to pay for their children's education because they need to financially support their parents. To deal with these potential monetary shortfalls, 40% of these Canadians expressed concern that they will have to borrow money from family and friends.

For those Canadians already financially supporting their children and parents, 25% believe their children have been negatively impacted because of the additional money and time provided to an aging parent that would otherwise go to their kids.

"What's most concerning is the amount of expenses that this group of Canadians is being forced to take on at a time when they should be saving for retirement," said Laurie Campbell, Executive Director, Credit Canada. "Our latest survey also found that two- thirds of Canadians in the Sandwich Generation have become burdened with additional financial problems as they deal with the reality of these heightened responsibilities. The end result is that more than half of these people (55%) now expect to retire later than expected so they can play financial catch up."

The survey asked Canadians about the types of sacrifices they have been forced to make in order to support both their dependent children and aging parents:

...30% are taking less vacations

...43% are eating out less

...36% have had to dip into their savings

...37% needed to work more hours

...38% have had to cut back on lifestyle costs (entertainment, social activities, etc.)

"It's important for Canadians to have a long-term view of their financial obligations to themselves and their families, so that they can make smart choices about their spending and saving," said Rob Livingston, President, Capital One Canada. "We believe all Canadians should have a thorough understanding of the tools and resources available to them to make these important financial decisions, which is why we support financial education initiatives."

In 2007, Credit Canada and Capital One Canada teamed up to create the first Credit Education Week Canada, with the objective to raise public awareness and educate Canadians about the many issues and challenges they face managing their finances, spending and savings. Now in its fifth year, Credit Education Week will be looking at the Sandwich Generation and the unique financial pressures they face. From November 14-18, over one hundred events and financial literacy workshops at YMCAs and community centres right across the country will occur under the Credit Education Week banner thanks to the support and funding of all sponsors.

Credit Canada and Capital One Canada provide the following tips for the Sandwich Generation

...Talk to someone - visit your local credit counseling agency or a financial advisor to find out your options

...Save for a rainy day - Life takes unexpected twists, so putting aside some emergency savings could keep you out of trouble

...Stay within your budget - Avoid dipping into your savings because you never know when a family member might need a helping hand

...Plan early - Start saving for retirement as soon as you can, and if you have kids, start an RESP for them when they're young

...Teach your kids - Encourage your kids to get part-times jobs to help pay for their education. They'll learn about savings, budgeting and the value of hard work

...Educate yourself - There are government and community programs available to help you and your family with your new financial responsibilities

About the survey

In September 2011, Credit Canada and Capital One Canada commissioned a survey of 830 Canadians in the Sandwich Generation to gain insight into their financial challenges and situations. The survey respondents were equally distributed across the 4 major regions of Canada (West, Ontario, Quebec and East) and the margin of error is +/- 3.4%, 19 times out of 20.

About Credit Canada

Credit Canada is a non-profit charitable service that has assisted thousands of people with credit counseling and debt management programs since 1966. Credit Canada is a member of the Ontario Association of Credit Counseling Services and a Charter Member of Canadian Association of Credit Counseling Services.

About Capital One

With offices in Toronto and Montreal, Capital One has offered Canadian consumers a range of competitive MasterCard credit cards since 1996, when the company first introduced the Platinum MasterCard in Canada. Capital One Canada is a division of Capital One Bank, a subsidiary of Capital One Financial Corporation of McLean, Virginia (NYSE: COF).

No comments:

Post a Comment