How to Prepare Your Children for Life After Graduation
Graduating without debt in Canada is an admirable accomplishment. The question is, should parents shoulder any of the responsibility of repaying loans where post-secondary graduates were unable to avoid using them? Should parents continue to financially support their adult children at the expense of their own financial well-being?
The most recent statistics show that among the graduates who finished school with debt, the average amount owed was almost $28,000. Although measures are being taken by the federal government to reduce the interest rates for federal student loans, owing thousands of dollars when starting a career can seriously hinder a young adult’s goals.
This is where parents often step in to offer financial assistance or a place to stay while adult children establish their independence. It is not uncommon. According to Statistics Canada, one-in-five 25-to-29 year olds lived with their parents in 1995. That number increased dramatically to one-in-three in 2016.