Adult children aren’t as concerned about their inheritances anymore.
With many parents worrying about if they’ll have money for their children, a survey by HomEquity Bank and Ipsos Reid found 45 per cent of Canadians aren’t expecting an inheritance while only 35 per cent do.
These Canadians are also becoming more supportive of their parents, with 94 per cent of those who expect an inheritance reporting they’d “willingly give up half of it to help their parents.”
The survey, conducted in May 2014, also found that 39 per cent of 1,025 Canadians aged 18-34 did not expect money from their parents, with 96 per cent of women and 92 per cent of men willing to give up half to help maintain or improve their parents’ lifestyle. In fact, it could even be the other way around where you end up inheriting the debt instead! Wondering if credit card debts are written off on death? The answer is no. Debts are in most cases, not inherited.
Jeff Schwartz, executive director of Consolidated Credit Counseling Services of Canada, Inc., says young people shouldn’t rely on inheritance –
“Young people should consider an inheritance a bonus, and not a right. Work hard and increase your savings so you don’t need money from your parents,” says Schwartz. “That way, you’ll be in much better financial shape if you do get some money, and you’ll be fine if you don’t.”
What can you do to help your parents and yourself? Here are some tips:
- Save up your moneyThe more money you have in your own account, the less you’ll be depending on your inheritance to help you. Saving money today is difficult, but if you make the process invisible and have it automatically deducted from your paycheque as soon as it hits your account, the money will have a chance to grow.
- Budget appropriatelyI’m not just talking about your own money; I’m talking about the inheritance. Budgeting and planning with all your resources is the cornerstone of financial success. If you do receive an inheritance, incorporate it into your financial goals. Don’t treat it like “free money” and spend it quickly. Your fiscal responsibility will be rewarded with financial success in the future.
If you want to learn more about saving a lot of money without spending a lot of time, check out Consolidated Credit’s free Personal Finance educational section. If you’re struggling with debt, call one of our trained counsellors today at 1-888-294-3130 for a free debt analysis.