Quebecers are financially poorly prepared to manage expenses associated with the arrival of a first child Clearfacts.ca – CROP* survey: The reflection of Quebecers’ financial position

Montreal, 2 September 2011 - 

The latest findings of the Clearfacts.ca* survey conducted by the polling firm CROP on the impact of children on the budget show that many parents are poorly prepared or unprepared to manage the expenses associated with the arrival of their first child.

In total, one out of four Quebecers (25%) state that they “had nothing planned” in terms of budgeting for the expenses incurred by the birth of their first child and 36% encountered expenses that were “greater than” expected. Only a minority of parents budgeted for expenses “equal to” (34%) or “less than” (5%) what they ended up spending in reality.

“The arrival of children into a family often has greater financial consequences than one thinks. It is therefore evident that families who manage their finances better end up with better results,” stated CROP President Alain Giguère.

However, as their children get older, other expenses appear. The majority of parents in Quebec (58%) have, for example, saved money for their children with the help of financial products such as an RESP or life insurance. Specifically in 2010, two out of five families (39%) contributed to an RESP in their minor child’s name in order to prepare for education-related expenses and to benefit from the advantages of the registered plan.

Pocket money
One third (33%) of Quebec parents also give their children an allowance. This phenomenon is more common in Montreal (37%) and less common in Quebec City (22%). On average, each child receives an allowance of $22 per week, which represents $31 per week per family.

 

    Region

Do you give an allowance or pocket money to at least one of your children?

 Montreal

 Quebec City

 Mauricie

 Saguenay

Eastern Townships 

 Outaouais

Elsewhere in Quebec 

 Yes

 37%

 22%

 28%

 32%

 30%

 27%

 31%

To find out more about Quebecers' on the impact of children on the budget, viewthe Clearfacts.ca/CROP poll at www.clearfacts.ca.

*Methodology: Data were collected online in December 2010 by web panels. In all, 1,814 Quebecers took part in the survey. The results were weighted to reflect the distribution of Quebec's population. Given the non-probability online sampling, the margin of error calculation does not apply.

About Clearfacts.ca
Clearfacts.ca is an initiative of National Bank. Its primary goal is to contribute to the financial education of Canadians. The site does not have any commercial intentions and the content presented is always neutral and credible. The role of clearfacts.ca is to help its readers make enlightened decisions that will contribute to their financial health.

About National Bank of Canada
National Bank of Canada is an integrated group that provides comprehensive financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services to its clients elsewhere in the world.  National Bank offers a full array of banking services, including retail, corporate and investment banking. It is an active player on international capital markets and, through its subsidiaries, is involved in securities brokerage, insurance and wealth management as well as mutual fund and retirement plan management. National Bank has over $153 billion in assets and, together with its subsidiaries, employs 19,217 people. The Bank’s securities are listed on the Toronto Stock Exchange (NA:TSX). For more information, visit the Bank’s website at www.nbc.ca. To access National Bank’s financial education portal, visit www.clearfacts.ca.

Information (The telephone number provided below is for the exclusive use of journalists and other media representatives.):

Joan Beauchamp
Senior Advisor – Public Relations
National Bank
Tel.: 514-394-6500