How to support adult children, grandchildren financially amid high cost-of-living

Ontario seniors are facing a cash crunch as they continue to support their kids and grandchildren at the expense of their own well-being.

A new poll on family finances from RBC shows 32 per cent of respondents in Ontario say they have provided money to their grandchildren, and 22 per cent are currently supporting at least one adult child. The report also noted that "this financial assistance comes at a high cost" to their own finances.

Many respondents say they are providing money for “need to haves” as opposed to "like to haves."

CTV Morning Live asked Duane Francis, portfolio manager with Capital Wealth Partners – Mandeville Private Client Inc. about some tips to keep your finances in a healthy spot if you are in this situation.

The first thing is to establish and communicate clear boundaries with your children, he suggests, while saying that talking about finances is already a tough topic.

"So, really think about, okay, how much can I give? What type of support can I give? And under what circumstances?" Francis explained.

He says though the cost-of-living is high nowadays, parents could have been better managers when it comes to money.

Prioritize your financial stability before you provide support to your children, he adds.

"Make sure you have a sound emergency fund. Make sure your retirement saving is in place," he added. "Manage your budget first, and see how much you can give your children."

Encourage financial independence while providing support, he adds.

You can do so by helping them set a budget, save and invest, he explains, noting that there are many resources out there to help with financial literacy.

Set a budget for assistance to determine what you can and cannot afford, he suggests.

Most importantly, he says, is to have a long-term plan. He suggests speaking with a professional while setting long-term financial goals.