{"id":156289,"date":"2025-09-23T21:23:16","date_gmt":"2025-09-23T21:23:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/156289\/"},"modified":"2025-09-23T21:23:16","modified_gmt":"2025-09-23T21:23:16","slug":"inheritance-gifts-are-creating-a-generation-of-haves-and-have-nots","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/156289\/","title":{"rendered":"Inheritance gifts are creating a generation of haves and have nots"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

Prapti Verma didn’t have financial support from her family, unlike 31% of Canadians according to a 2024 CIBC study. Verma and her husband dipped into his RRSP and borrowed money from friends to buy her home.Galit Rodan\/The Globe and Mail<\/p>\n

When Prapti Verma moved to Canada from India in 2018, she was taken aback by the number of real estate advertisements she saw on almost every street corner. She noticed each one: the for-sale signs propped up on front lawns, the faces of grinning realtors plastered on benches, and the massive billboards on the highway.<\/p>\n

It didn\u2019t take long for the now 33-year-old to learn that homeownership isn\u2019t just a milestone in Canada \u2013 it\u2019s the dream. She and her husband, who were excited to build a life and raise a family in a country they loved, bought into that dream.<\/p>\n

In 2021, they purchased their first townhouse in Ajax, Ont., for around $750,000, putting 10 per cent down. Two years later, they sold the townhouse and upgraded to a detached home in nearby Whitby, costing about $1-million.<\/p>\n

But despite living the Canadian dream, Ms. Verma says she doesn\u2019t feel ahead, financially or emotionally.<\/p>\n

Earlier: Young Canadians falling behind on payments as debt divide widens, report shows<\/a><\/p>\n

Unlike many of their peers, the couple received no financial gifts from family. To afford their first townhouse, Ms. Verma and her husband, both working full-time jobs in fundraising and IT respectively, picked up additional work driving for Uber, stayed home most weekends, dipped into his work RRSP and borrowed $10,000 from friends.<\/p>\n

Today, even with owning a home and working two full-time jobs between them, the pressure hasn\u2019t let up. They are struggling to keep up with their high mortgage payments and paying back money into the RRSP. <\/p>\n

\u201cIt doesn\u2019t feel like in the short term we\u2019ll be able to get over all of those things very soon,\u201d Ms. Verma said. \u201cWhereas if I had money from my parents, there\u2019s no obligation over that.\u201d <\/p>\n

Opinion: Inside Canada\u2019s household debt crisis<\/a><\/p>\n

\u201cYou\u2019re not free from it,\u201d she said, referring to the debt they have left to pay.<\/p>\n

Across Canada, more young adults are relying on their families to get a leg up, especially when it comes to buying a home. But for those without that help, the path to financial security can feel steeper, slower, and often lonelier. As intergenerational wealth becomes more pronounced, the gap is widening between Canadians who can build for the future, and those still catching up.<\/p>\n

A 2024 CIBC study found that 31 per cent of first-time homebuyers received gifts from family to help with down payments, up from 20 per cent in 2015. And the size of those gifts is growing. The average reached $115,000 last year, a 73-per-cent jump from 2019.<\/p>\n

Open this photo in gallery:<\/a><\/p>\n

Although Ms. Verma and her husband were able to buy a home on their own, the purchase left them feeling financially strained.Galit Rodan\/The Globe and Mail<\/p>\n

The divide is only getting starker as young people face one of the toughest job markets in decades<\/a>. Entry-level opportunities are drying up, and real estate prices remain high. For those without the financial cushion of family support, every step forward can feel hard-won and delayed.<\/p>\n

Without a family safety net, Ms. Verma says she feels her financial burden has been heavier than that of her peers. Many of the couple\u2019s friends, Ms. Verma says, received down payment gifts and were able to put 20 per cent or more down, lowering their monthly mortgage costs significantly. Some bought homes earlier. Others still take vacations.<\/p>\n

Adam Jenkins, a certified financial planner in Kingston, sees first-hand how significant family help can be. Among his clients, gifts from parents often range from $100,000 to $200,000.<\/p>\n

This private investor wants to own a piece of your house<\/a><\/p>\n

\u201cIt makes a massive difference,\u201d he said. \u201cThe size of those payments and the interest associated with it obviously really affects those kids and being able to essentially save for anything else \u2013 their future, their goals.\u201d<\/p>\n

He continued: \u201cIt\u2019s really hard not to compare yourself. You see your friends buying houses and you feel like you\u2019re being left behind.\u201d<\/p>\n

Mr. Jenkins urges young Canadians to focus on what they can afford after contributing to long-term savings vehicles such as RRSPs and TFSAs, rather than contorting their budgets around homeownership.<\/p>\n

\u201cBuying a house isn\u2019t right for everyone. It shouldn\u2019t be the one and only goal.\u201d<\/p>\n

But the wealth divide isn\u2019t just about down payments. It shapes everything, from how early someone can start investing to whether they can take career risks, save for retirement or weather economic downturns without derailing their plans, Mr. Jenkins said. <\/p>\n

Opinion: Debt is catching up with Canadians<\/a><\/p>\n

Another advantage that\u2019s helping some young Canadians get ahead faster: the ability to live with their parents.<\/p>\n

Whether they never left or have moved back in, living at home even temporarily can supercharge savings. Some contribute rent or groceries; others don\u2019t. Either way, the cost savings can be thousands per month.<\/p>\n

\u201cThe amount they can save is substantial,\u201d said Robin Taub, a chartered professional accountant in Toronto, and author of The Wisest Investment: Teaching Your Kids to Be Responsible, Independent and Money-Smart for Life. \u201cPeople talk about skipping the latte which is, you know, $5 to $8 a day. This is like thousands of dollars a month, so it\u2019s a lot more high leverage in terms of the impact that it can have on your savings.\u201d<\/p>\n

Open this photo in gallery:<\/a><\/p>\n

Tyler Wright, 39, finished his undergrad with over $40,000 in debt and paid it off without help.Galit Rodan\/The Globe and Mail<\/p>\n

She\u2019s seeing more young adults who could afford to move out but are staying put to build savings faster. Beyond money, there are emotional upsides, too, such as having a built-in support system and, in some cases, improved mental health.<\/p>\n

For other Canadians, not having a leg-up financially isn\u2019t just about money. It means missing out on time, connection and even belonging. <\/p>\n

Sandy Stevens, 60, of Paris, Ont., was the first in her family to attend university. She commuted 90 minutes each way to York University from her parents\u2019 house because she couldn\u2019t afford residence. She also paid them rent.<\/p>\n

\u201cI was always working or riding the subway,\u201d she said. \u201cI didn\u2019t have those bonding experiences. I don\u2019t have any friends from that time that I\u2019m still in touch with. I think I missed out on something there.\u201d She ended up dropping out of York and returning to her education at University of Toronto in 2000.<\/p>\n

Ms. Stevens worked a variety of jobs to pay for her education, including retail and summer camp roles, then ended up working for the Toronto Police Service as a 911 dispatcher.<\/p>\n

Canada\u2019s unemployment rate in August climbs to nine-year high outside of early pandemic<\/a><\/p>\n

Meet four young Canadians in labour limbo<\/a><\/p>\n

Her hustle paid off. She retired two years ago, without much help from her family. <\/p>\n

Although they didn\u2019t assist her financially, her parents did teach her the importance of saving. \u201cIt was always drilled into me to save for a rainy day, because you\u2019re going to need money in your retirement,\u201d Ms. Stevens said. \u201cI wasn\u2019t paying for a trip unless I had the money in the bank … and I was never racking up a credit card bill.\u201d<\/p>\n

Her story highlights how building wealth without inheritance or parental gifts is possible, but it does require some trade-offs.<\/p>\n

Tyler Wright, 39, also had no financial assistance from family and graduated from McMaster University in 2012 with $40,000 in student debt and a starting salary of $45,000. His first priority out of school wasn\u2019t saving for retirement, it was staying afloat.<\/p>\n

\u201cWhen you\u2019re in debt, it sucks. Every paycheque is just going toward loans. You feel like you\u2019re drowning,\u201d Mr. Wright said.<\/p>\n

Open this photo in gallery:<\/a><\/p>\n

Mr. Wright saves to build familial wealth so his children won’t have to amass debt like he did while a university student.Galit Rodan\/The Globe and Mail<\/p>\n

It took him more than five years to pay off his student loans. During that time, he cut back on social outings, lived in a small space and sometimes worked 70 hours a week. \u201cI never wanted to be back there again in my life,\u201d he said. <\/p>\n

In the years that followed, he saved aggressively \u2013 up to $100,000 a year. He earned four promotions in five years working in tech and bought two properties; construction has started on a third. While Mr. Wright is now financially stable, he still often works more than 60 hours a week. <\/p>\n

\u201cI don\u2019t want my kids to go through what I did,\u201d he said. \u201cI want to build family wealth.\u201d <\/p>\n

It\u2019s a perspective he earned through hard-won experience. During his time at McMaster, he failed 10 classes before being diagnosed with a learning disability. By graduation, he had pulled his D average up to an A and was named valedictorian.<\/p>\n

In his speech at graduation, he told his fellow graduates: \u201cSacrifice means doing whatever it takes to achieve your goals, no matter how many people say it can\u2019t be done. When you believe this, you realize that success is not a matter of if, success is a matter of how.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: Prapti Verma didn’t have financial support from her family, unlike 31% of Canadians…\n","protected":false},"author":2,"featured_media":156290,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4176,4174,4175,11749,56,54,55,25875],"class_list":{"0":"post-156289","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-personal-finance","11":"tag-personalfinance","12":"tag-r-fp","13":"tag-uk","14":"tag-united-kingdom","15":"tag-unitedkingdom","16":"tag-yessnap"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/156289","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=156289"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/156289\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/156290"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=156289"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=156289"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=156289"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}