Longer term financial impact of the COVID-19 pandemic beginning to show in Canadians' financial plans; saving money and avoiding debt are now top goals
Economic worries may be a factor in why many Canadians are adjusting their financial habits.
Many respondents (63 per cent) say they have significantly cut down on discretionary spending and more than half (55 per cent) agree they need to get a better handle on their finances this year.
"It's understandable that Canadians are worried about the economy and are feeling uncertain about the impact on their ambitions, but this is a time when good financial advice conversations are most valuable, including assessing your overall situation, looking at opportunities to improve cash flow, and adjusting your financial plan if necessary," said
The survey also found that 46 per cent of Canadians say the economic impact of the pandemic has adversely affected their finances and a similar number (47 per cent) feel it will take more than a year to get their personal finances back on track. Canadians are prioritizing building an emergency fund in 2020, citing this as a top goal for the remainder of the year, followed by steering clear of adding on debt. Of the 22 per cent of respondents who've had to borrow more in the past 12 months, the number one reason was for day-to-day items (38 per cent) followed by a loss of income (28 per cent).
"The impact of the pandemic will be felt by Canadians for some time. While we have a long way to go to get back to a normal economy, taking charge of your finances now with a savings and debt management plan is an important step towards putting your personal finances back on track," added
The survey also found:
- Top financial goals for the remainder of 2020 are: generally saving as much as possible (37 per cent), and avoiding taking on more debt (36 per cent)
- Close to three-fourths of Canadians (74 per cent) say the uncertainty of the current environment makes it difficult to plan ahead, and over half (54 per cent) are generally worried about their financial future
- The number of people who say they've taken on more debt is lower (22 per cent) than in
December 2019 (28 per cent). Among those who have taken on more debt, 38 per cent say they did so to cover day-to-day expenses or due to loss of income (28 per cent) and job loss (18 per cent, +9 per cent fromDecember 2019 ) - Regionally, the poll found differences in how Canadians are tightening their wallets. Residents in the Prairies say they are cutting discretionary spending the most, led by 76 per cent of those in
Saskatchewan andManitoba , and 69 per cent of Albertans, compared to the national average of 63 per cent - At 58 per cent, taking on more debt to pay for day-to-day items was the highest in
British Columbia , 20 per cent higher than the national average of 38 per cent
Disclaimer
From
About CIBC
CIBC is a leading Canadian-based global financial institution with 10 million personal banking, business, public sector and institutional clients. Across Personal and Business Banking, Commercial Banking and Wealth Management, and Capital Markets businesses, CIBC offers a full range of advice, solutions and services through its leading digital banking network, and locations across Canada, in the United States and around the world. Ongoing news releases and more information about CIBC can be found at www.cibc.com/en/about-cibc/media-centre.html.
SOURCE CIBC
© Canada Newswire, source