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TD: Many Canadian Parents Have Bad Budget Habits

A recent Ipsos survey for the Toronto-Dominion Bank (TD), in preparation for Financial Literacy Month in Canada, found that one-third (33%) of Canadian parents did not believe they were giving a healthy financial example to their children.

The 2021 TD Financial Literacy Month Survey also indicates that only 29% of Canadian parents surveyed consider their household to be in “excellent” or “good” financial health, which includes the ability to pay bills on time and have a manageable level of debt, short- and long-term savings, and a financial plan.

The TD survey found that nearly half (45%) of Canadian parents surveyed did not budget for family expenses. (See Insiders’ Hot Stocks on TipRanks)

Giving an allowance to young children can be a good tool to help them understand the concepts of money and budget. Almost a quarter of the parents surveyed pay their children an allowance to do household chores (21%), or to reward their good behavior (5%).

When it comes to discussions about money, the TD survey indicates a lack of consensus on timing. A quarter (25%) of Canadian parents surveyed do not discuss money with their children on a regular basis, mainly because they think they are too young.

“It’s never too early to have fun, creative and open conversations about money with your kids. From counting coins in a piggy bank to opening-up a first bank account and looking at the account activity together, there are many ways to involve kids in managing their finances,” Jennifer Bishop, Head of Financial Health & Education at TD.

“Financial education is critical, and when children learn to manage money at a young age, they are more likely to have a long-lasting responsible and healthy relationship with money as adults.”

On October 1, National Bank analyst Gabriel Dechaine upgraded TD to Buy from Hold, and raised its price target to C$93 (from C$89). This implies 6.1% upside potential.

Overall, TD scores a Moderate Buy rating among Wall Street analysts based on five Buys and four Holds. The average Toronto-Dominion Bank price target of C$93.92 implies 7.2% upside potential to current levels.

TipRanks’ Smart Score

TD scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock returns are very likely to beat the overall market.

Related News:
CIBC Ambitions Survey: Pandemic Hasn’t Derailed Canadians’ Ambitions
RBC Finds Canadian Couples Talk More About Money
TD, Canadian Association of Black Lawyers Launch Programs

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