BMO Survey: Gen Z and Millennials Face Challenges Raising a Family Amid Rising Financial Pressures

Associated Press

3 days ago

TORONTO, Aug. 13, 2025 /CNW/ - The latest BMO Real Financial Progress Index reveals seven-in-ten Gen Z (70%) and Millennials (69%) want to have children but worry doing so would negatively affect their financial security. While 81% of Canadians say being a parent brings joy and fulfillment to their lives, over half (53%) of parents admit having children compromised their financial security.
The BMO survey examines how the financial and emotional challenges related to raising children in the current economic environment are shaping parenting decisions and found:
'For many Canadians, starting and raising a family is one of life's most meaningful journeys, but it can also bring significant financial and emotional pressures,' said Gayle Ramsay, Head, Everyday Banking, Segment & Customer Growth, BMO. 'To help ease that burden, we encourage families to have open, ongoing conversations about money and to create a financial plan that reflects their values and long-term goals – whether it is buying a home, saving for their child's education and more. Working with an advisor can provide guidance through life's changes, and help families stay on track and focus on what matters most – spending more time together and making real financial progress.'
According to BMO Economics, the current economic environment is testing the resilience of households in Canada. The Bank of Canada's Survey of Consumer Expectations suggests most respondents have a negative opinion of their financial health, likely given concerns about tariffs and trade, a rising unemployment rate and sagging home prices in parts of Ontario and British Columbia.
However, financial conditions are improving with lower interest rates, falling borrowing costs and steady income gains in the past year, meaning the overall debt service burden has fallen from earlier record highs. Household financial stress should improve further if the Canadian government can negotiate a trade deal with the U.S. and if the Bank of Canada resumes policy easing, as anticipated, in the fall. The latter would further reduce the mortgage reset burden on many homeowners in the next two years.
The Price of Parenthood
The BMO Real Financial Progress Index found 84% of Canadians feel the costs associated with raising children have become unmanageable, with parents saying the most surprising costs include groceries (39%); toys and activities such as sports and recreational clubs (37%); daycare, private schools and afterschool care (31%); housing costs to accommodate a child (30%); baby supplies such diapers, formula, etc. (28%); new clothing for the child(ren) (27%); strollers, car seats and other similar items (25%); and extra childcare help such as a nanny, babysitting, etc. (21%).
While concerns about the financial demands of parenting remain high, many Canadians plan to support their children well into adulthood, with 22% saying support should continue until their child secures a full-time job, 18% planning to provide support until the child moves out, and 22% believing parents should offer support regardless of life stage. On average, Canadians feel parents should financially support their children in some capacity for 19 years; notably, 29% believe this support should last for as long as the parents are alive.
BMO Helps Families Make Real Financial Progress
BMO offers some tips to help Canadians and their families stay on track towards their financial goals and make real financial progress:
To learn more about how BMO can help clients make financial progress, visit www.bmo.com/main/personal.
About the BMO Real Financial Progress Index
Launched in February 2021, the BMO Real Financial Progress Index is an indicator of how consumers feel about their personal finances and whether they are making financial progress. The index aims to spark dialogue that will help consumers reach their financial goals and to humanize a topic that causes anxiety for many – money.
The research detailed in this document was conducted by Ipsos in Canada from June 10 to July 17, 2025. A sample of n=2,501 adults ages 18+ in Canada were collected. Quotas and weighting were used to ensure the composition of the samples reflects that of the Canadian population according to census parameters. The surveys have a credibility interval of +/- 2.4 per cent 19 times out of 20, of what the results would have been had all Canadian adults 18+ been surveyed.
About BMO Financial Group
BMO Financial Group is the seventh largest bank in North America by assets, with total assets of $1.4 trillion as of April 30, 2025. Serving customers for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to 13 million customers across Canada, the United States, and in select markets globally. Driven by a single purpose, to Boldly Grow the Good in business and life, BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future, and inclusive society.
SOURCE BMO Financial Group