A special Valentine’s Day report from the BMO Real Financial Progress Index reveals 56% of Canadians say the rising cost of living is affecting dating, with many going on fewer dates and/or planning less expensive dating activities.
The survey explores how concerns about the economy and personal finances have affected approaches to dating and relationships and found 42% of single Canadians admitted to adjusting their plans for a date for financial reasons. Nearly a third (30%) of single Canadians have cancelled a date to save money.
Canadians on average spend $173 for each date, including the cost for transportation, preparation such as grooming and attire, and expenses such as food, beverages and tickets. On average, partnered Canadians have gone on 10 to 21 dates before committing to a relationship, suggesting Canadians could spend up to $3,621 on dates before making a relationship official.
The survey’s insights on how single Canadians are managing the financial costs associated with dating include:
- The Cost of Finding Love:
- 38% say the costs associated with dating have affected their ability to reach their financial goals.
- Over two-in-five (41%) single Canadians often left a first date feeling it was a waste of time and money.
- The majority (60%) are not willing to spend money on dating apps or professional match making services. Among the single Canadians willing to spend on these services, on average they will spend only $16 annually.
- The Decline of Dating:
- While singles on average have been on three dates in the past 12 months, more than half (55%) say they have been on zero dates in the past year.
- On average, single men have been on four dates in the past 12 months while single women have been on three dates.
- Financial Green and Red Flags:
- When evaluating their prospective partner’s finances, the most attractive financial traits include a sense of financial responsibility (95%), the ability to discuss their finances with their partner (88%), having a good financial plan (87%) and having a successful career trajectory (83%).
- While single men and women have similar expectations for their prospective partners’ finances, men are more likely to feel pressure to demonstrate good financial attributes than women.
- Single women are more likely to consider low credit scores (7% more) and whether their partner earns significantly less than them (5% more) as financial dealbreakers than men.
- Nearly half (48%) of single men admit their net worth affects their dating prospects – 12% more than women.
- Single men are 20% more likely to feel pressured to plan expensive dates than women.
The changing approach to dating comes as many Canadians continue to navigate turbulent economic conditions. According to the BMO Real Financial Progress Index, concerns about the cost of living (56%), inflation (51%) and a possible economic recession (48%) have increased in the past three months. Despite these concerns, 72% of Canadians feel in control of their finances and 38% feel more financially secure than they were a year ago.
“While the inflation rate has normalized in Canada, consumer prices are still, on average, 17% higher than four years ago, and food costs are 22% more expensive,” said Sal Guatieri, Senior Economist, BMO. “Although wages are also rising and borrowing costs are coming down, many Canadians continue to struggle with the high cost of living, forcing some to cut back on discretionary expenditures such as dating.”
“Our relationship with money is deeply personal, and with dating, it is a matter of whether you see it as a cost or an investment,” said Gayle Ramsay, Head, Everyday Banking, Segment & Customer Growth, BMO. “Whether finding a partner is an immediate or long-term goal, Canadians should focus on building a financial plan that prioritizes their own financial progress and pays their future self first by consistently investing in an emergency savings fund and retirement. Seeking advice from a financial expert can also help you adjust these plans when new goals or relationships emerge, while helping you stay on track towards your goals – regardless of your relationship status.”
Honey, Let’s Talk About Money
The BMO Real Financial Progress Index also examines how couples are approaching financial planning and communicating their priorities:
- The Blame Game:
- One third (33%) of partnered Canadians say spending is often a source of conflict in the relationship and 38% believe their significant other spends too much money.
- 27% believe different levels of income have created tensions in the relationship.
- 11% of Canadians admit they have not been truthful about their finances to their partner or spouse.
- Defining the Financial Relationship:
- On average, couples have discussions about their finances twice a month.
- Among the majority (82%) of partnered Canadians who believe finances should be discussed during the early stages of a relationship, 37% believe these conversations should take place when the relationship becomes official, nearly a third (32%) feel it should happen when planning on moving in together and 10% think financial discussions should occur after the first few dates. 11% believe these conversations should begin when getting engaged and/or married.
- Yours, Mine and Ours:
- Most Canadians in relationships currently share or have integrated their finances with their partner or spouse (76%) and feel comfortable discussing finances with them (86%).
- When considering the ideal time to combine finances, 46% believe it is when getting engaged or married, followed by when moving in or buying a home together (32%) and when the relationship becomes official (7%).
- Nearly a quarter (24%) of partnered Canadians do not share or integrate their finances with their partner or spouse.
“As couples begin building a life together, the lines between what is yours, mine and ours will inevitably blur. Whether you are moving in together, getting married or thinking about retirement, these milestones are major transitions that benefit from having honest discussions about your financial priorities, goals and concerns. Being able to talk to your partner about money can help you navigate the course of your life and partnership,” said Ms. Ramsay.
Rekindling Your Relationship with Your Finances
BMO offers tips and resources to help Canadians stay on track towards their financial goals and make real financial progress regardless of their relationship status:
- Protect Yourself and Your Assets: Regardless of the relationship status, Canadians should prepare for unexpected expenses such as job loss, health issues or even the breakdown of a relationship or divorce. It is recommended to have an emergency fund that is fairly liquid and can cover three to six months’ worth of living expenses.
- Understand Each Other’s Money Mindset: Moving in together, buying a home and/or getting married are big milestones involving major transitions. It is important to understand each other’s money mindset including assets that should be combined and kept separate, share goals and outstanding debts and work through any differences.
- Beware of Romance Scams: Online dating and social media make it seem easy to meet people; while these sites attract a lot of single people seeking partners, they also attract criminals armed with advanced artificial intelligence (AI) tools to create scams. Romance scams involves fraudsters expressing false romantic intentions towards victims to gain their trust in order to access their money (cash, gift cards, credit card information), personal information and/or bank accounts. To learn more about how Canadians can protect themselves and their loved ones from romance scams, please click here.
- Seek Professional Advice: Do not wait to seek help until a time of crisis. Working with a professional expert and meeting with them regularly can help Canadians and their loved ones create and maintain a financial plan that reflects their financial goals, sources of income and cash flow, risk appetite and time horizons, and adjust these plans as new goals or relationships emerge.
Customers can build financial literacy, monitor financial plans, and reach financial goals through BMO’s innovative digital tools and resources:
- BMO SmartProgress: This tool helps customers learn more about important personal finance topics and build financial literacy anywhere and at any time. It is a free, online financial education platform featuring customized, interactive content, including videos and tools, on complex financial planning topics including budgeting and credit management, homeownership and investing.
- BMO CreditView: Customers can quickly and easily check their credit scores and access new tools and advice to manage their credit profile online and on mobile.
- BMO Insights: Customers get help saving more, monitoring spending and account values, and spotting unusual activity with 25 BMO Insights that provide customers free, quick, and personalized views of their daily spending to help them make informed decisions. Popular online insights include:
- CashTrack: Using artificial intelligence, these insights monitor customers’ cash flows and let them know if they will run out of money in the next seven days.
- Spend Categorization: These insights notify customers when there has been a significant increase in a specific spending category or if a free trial has expired.
- BMO Savings Amplifier Account: To help make saving easy and automatic, BMO’s new Savings Amplifier Account offers no monthly fees, a competitive interest rate, and unlimited no-fee transfers to other BMO accounts. In addition, its digital Savings Goals feature enables customers to set, track, and manage their financial goals.