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Saving and Investing for Children - Canada - March 2017

Published By :

Mintel

Published Date : Mar 2017

Category :

Banking

No. of Pages : N/A

Making Personal Financial management tools more appealing and useful might be a helpful stimulus to motivate parents to save small amounts regularly to enhance RESP contributions.

Table of Content

OVERVIEW
Regional classifications
Income
Glossary

EXECUTIVE SUMMARY
The issues
Around three in four parents are saving for their children
Figure 1: Incidence of saving/investing for children, January 2017
RESP is the most widely used product
Figure 2: Products used for saving, January 2017
Education is the top reason for saving
Figure 3: Reasons for saving for children, January 2017
Almost half of parents prefer harder to access savings products
Figure 4: Attitudes related to product access, January 2017
The opportunities
Using mobile apps to bolster financial management
Figure 5: Attitudes related to savings products for children, January 2017
How can the financial industry help Canadian parents to save?
Figure 6: Attitudes related to savings habits, January 2017
Encouraging financial literacy among children
Figure 7: Attitudes related to value of money, January 2017
What it means

THE MARKET – WHAT YOU NEED TO KNOW
Chatbots and banking customer service
Robo-investment advisors
Canadian banks react to the fintech challenge
Canadian economy finishes 2016 on a strong note
New financial literacy initiatives rolling out across Canada

MARKET FACTORS
Chatbots and banking customer service
Robo-investment advisors
Canadian banks react to the fintech challenge
Canadian economy finishes 2016 on a strong note
New financial literacy initiatives rolling out across Canada

KEY PLAYERS – WHAT YOU NEED TO KNOW
Bank of America opens branches without employees
Credit Karma crosses the border to Canada
Scotiabank branches out with two new branch formats, Express and Solutions
TD and Scotiabank streamline services to high net-worth investors

INDUSTRY DEVELOPMENTS & INNOVATIONS
Canadian credit unions set to benefit from Grow and Celero partnership for digital banking solutions
Credit Karma crosses the border to Canada
RESP Providers
HSBC’s new PFM (Personal Financial Management) tool, Nudge and other PFM tools
Scotiabank branches out with two new branch formats, Express and Solutions
Bank of America opens branches without employees
Meridian introduces Sweep: a feature that ‘sweeps’ money daily
EQ Bank launches mobile app and announces 3% interest rates
TD and Scotiabank streamline services to high net-worth investors

MARKETING CAMPAIGNS
Select campaigns from Mintel Comperemedia
Prospera markets to parents
Figure 8: Prospera credit union youth savings account mail, September 2015
TD’s MySpend App
Figure 9: TD’s Myspend app customer email, August 2016
Figure 10: CIBC TFSA acquisition email, January 2017
Figure 11: TD RESP acquisition email, July 2015
RBC’s High Interest Savings Promotion
Figure 12: RBC High interest savings promotion email advertisement, July 2016

THE CONSUMER – WHAT YOU NEED TO KNOW
Around three in four parents are saving for their children
RESP is the most widely used product
Education is the top reason for saving
Most parents feel it is important to learn about saving at a young age

SAVING INCIDENCE AND BEHAVIOURS
Around three in four parents are saving for their children
Figure 13: Incidence of saving/investing for children, January 2017
Quebecers less likely to save for their children
Around one in three parents contribute enough in RESPs
Figure 14: Behaviours related to saving for children, January 2017
Suburban parents more likely to spend significant amounts on children’s extra-curricular activities
Figure 15: Behaviour related to children’s expenses, January 2017
One in four parents discuss finances with their children
Figure 16: Behaviours related to children’s habits, January 2017

PRODUCTS HELD FOR SAVING
RESP is the most widely used product
Figure 17: Products used for saving, January 2017
Older parents have a higher ownership of RESP and insurance products
Figure 18: Significant differences in product ownership, by age, January 2017
Around one in five have three or more products
Figure 19: Number of products held: repertoire analysis, January 2017
Around half of parents would like to know more about savings products for children
Figure 20: Attitudes related to savings products for children, January 2017
Using mobile apps to bolster financial management

REASONS FOR SAVING
Education is the top reason for saving
Figure 21: Reasons for saving for children, January 2017
Older parents more likely to be saving for education
Figure 22: Select reasons for children’s savings, 18-34s vs over-35s, January 2017

ATTITUDES RELATED TO CHILDREN AND SAVING
Quebec parents relatively less concerned about rising higher education costs
Figure 23: Attitudes related to savings habits, January 2017
Women more likely to rate saving for children as a priority
How can the financial industry help Canadian parents to save?
Most parents feel it is important to learn about saving at a young age
Figure 24: Attitudes related to value of money, January 2017
Almost half of parents prefer harder to access savings products
Figure 25: Attitudes related to product access, January 2017
Encouraging financial literacy among children

APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Consumer qualitative research
Abbreviations and terms

List of Table

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