As another school year approaches, the excitement of backpacks and new beginnings is often coupled with a growing financial burden, not just for students but for the parents and grandparents supporting them. A burden that is growing now more than ever.

With youth unemployment now at 14.2%, many young Canadians are struggling to find stable work, sparking what some economists are calling a “youth-cession.” Slowing wage growth, fewer entry-level jobs, and inflationary pressures have made it harder to achieve financial independence. As a result, more students are turning to family to help cover rising education, and older generations are footing the bill for longer than ever before.

At Bloom, we wanted to understand how this shift is affecting Canadians’ financial well-being, especially those juggling tuition payments, school expenses, and long-term retirement plans. Our latest Multigenerational Education Support Report, conducted in partnership with Angus Reid, uncovers the growing trade-offs families are making to support the next generation, including their ability to save or budget for retirement.

Young Canadians Can’t Afford School — So Their Families Are Paying the Price

School costs are a multi-generational affair these days, and according to our latest survey, over half of Canadians (52%) have children, and nearly a quarter (24%) have grandchildren. Among them, school is a big part of their current stage of life, and an even bigger part of the budget:

• 57% of parents and 76% of grandparents have children in education programs right now
• 70% of them are footing the bill when it comes to school-related expenses

While the support can vary, for many, it’s more than just the occasional shop for school supplies.

‍

The Numbers Behind the New Reality

The study found that over half of Canadians (54%) providing education support are paying up to $5,000 per school year, with 16% contributing over $5,000 annually. 

These costs include everything from tuition, books, and tech, to transportation, dorm fees, and extracurricular activities – many of which are going up in price. In fact, 28% expect to pay more this school year than in previous years, while 45% anticipate costs to remain the same, which still means “expensive” in today’s economy. 

‍

The Long-Term Trade-Off: Retirement Delayed

What’s most concerning isn’t just the cost – it’s what families are giving up to cover it for their children and grandchildren. 

Among Canadians providing financial support toward their children and or grandchildren’s education:

• 46% say it’s impacted their financial obligations
• 39% say it’s directly affected their ability to save or budget for retirement 

That’s nearly 1 in 4 Canadians potentially putting their own future at risk to help – a reality that highlights just how stretched many families are feeling right now. 

‍

Bridging the Gap

We hear this all the time at Bloom: people want to help their children and grandchildren succeed, but they also want to make sure they’re setting themselves up for a secure and comfortable retirement. In fact, one-in-three grandparents are supporting their children or grandchildren financially, with 65% saying their financial support obligations have affected their retirement savings. 

The challenge is, it often feels like you have to choose between one or the other. But that’s where tools like reverse mortgages can come in. By tapping into the equity built up in your home, you can unlock new flexibility so that you don’t have to choose between your financial future and supporting a child through university. 

‍

Methodology: These findings are from a survey conducted by Bloom from July 29th to July 31st, 2025, among a representative sample of 1510 online adult Canadians who are members of the Angus Reid Forum. The survey was conducted in English and French. For comparison purposes only, a probability sample of this size would carry a margin of error of +/-2.53 percentage points, 19 times out of 20.

‍