Scotiabank's survey reveals Canadians spend more time worrying about finances, yet show growing optimism
In a recent unveiling by Scotiabank, the fifth annual Worry Poll sheds light on the financial concerns and behaviors of Canadians, revealing a complex landscape of financial anxiety and proactive management.
The survey finds that Canadians are dedicating more time to worrying about their finances, with an average of 17.7 hours per week, an uptick from the 15 hours reported in the previous year.
Despite a slowdown in inflation, the high cost of living continues to be a pressing issue. However, there is a noticeable shift in sentiment, with 70 percent of Canadians expressing concern about the financial impact, a decrease from 77 percent in the third quarter of 2023.
This suggests a budding sense of financial optimism among the populace.
A significant share of Canadians, 60 percent, are seeking advice from their financial institutions, focusing on long-term investment and retirement planning. For half of the population, managing day-to-day expenses remains the paramount financial worry.
Scotiabank underscores the importance of consulting financial advisors for navigating immediate financial challenges and future planning.
The poll also indicates a downward trend in financial worry compared to July 2023, with 46 percent of Canadians now concerned, a decrease from 58 percent. Concerns about the ability to repay debts have also slightly diminished, with 62 percent feeling anxious, down from 66 percent in the third quarter of 2022.
Financial literacy emerges as a critical area for improvement, as 29 percent of Canadians admit to not knowing the best ways to utilize their money to achieve their financial goals. Remarkably, 50 percent of Gen Z Canadians anticipate an improvement in their financial situation in the next six months, showcasing a more robust sense of optimism compared to the broader population.
Kingsley Chak, senior vice president of Deposits, Savings & Investments at Scotiabank, highlights the resilience and proactive measures taken by Canadians amidst financial pressures.
The report underscores a generational pivot in financial management, with younger Canadians, particularly Gen Z and Millennials, actively seeking financial advice and engaging in cost-saving practices more than older generations.
The geographical analysis of financial stress reveals varying degrees of worry across Canada. Ontarians report the highest levels of financial stress, followed by residents of Atlantic Canada and Manitoba/Saskatchewan, with Quebecers feeling the least stressed.
This comprehensive survey is conducted among 1,520 Canadian adults.
