Young adults are prioritizing major trips over homeownership, giving advisors a growing market of potential clients with disposable income.
According to nonprofit FP Canada’s Money & Milestones Survey, 43% of Canadians aged 18 to 34 now rank travel as their top financial milestone, ahead of buying a home (38%) and saving for retirement (34%). By contrast, middle-aged Canadians (35 to 54) focus on retirement (61%), travel (47%), and their children’s education (25%).
Rising home prices—about 30% higher than six years ago—are reshaping expectations for younger generations.
When big goals feel out of reach, people focus on ones they can actually achieve, explains Sam Maglio, Marketing Professor at the University of Toronto, in a Financial Post article. Younger Canadians "are recalibrating their priorities for something more [immediate]."
A case in point the article cites: Wendy, a 25-year-old data analyst in Ottawa, saving for her first international trip—a two-week visit to the United Kingdom to see a friend, catch a West End show, and enjoy a traditional English tea.
Homeownership no longer feels realistic to her and her partner.
“We’re currently renting in a pretty nice neighbourhood, and we probably couldn’t afford a home in it,” she says in the article. “Paying a mortgage for 30-plus years doesn’t seem like something I want to put on my plate.”
Similarly, Spencer Pomeroy, a 35-year-old financial services professional in Ottawa, rents and spends two to four weeks travelling every year. He and his partner are currently saving for a month-long trip to South America that will cost about $10,000.
Although also saving for a home, Pomeroy isn’t in a rush to buy until the timing, location, and costs make sense. “I’d like to be in a place where I could comfortably afford my mortgage, handle unforeseen expenses, and still travel, go out for dinner, and enjoy my leisure time,” he told the Financial Post.
Fnancial pressures are impacting all aspects of life for many, the survey also found. And that includes travel plans. Just over half of Canadians (51%) say they’re putting off at least one milestone for money reasons, including travel (27%), retirement (19%), and homeownership (15%).
