Majority Of Young Canadians Worried About Keeping Up With Living Expenses

Financial stress starts young. A new poll by CIBC finds that the majority (65 per cent) of young Canadians aged 18-24 are worried about keeping up with living expenses. The most common contributor to financial stress among young Canadians is simply having enough disposable income to enjoy themselves, with more than one-third (38 per cent) identifying this as a top financial concern.

To help young Canadians shape good financial habits as they begin their financial journeys, CIBC has launched its new Smart ^TM Start benefit, a no-fee banking solution available to clients until the age of 25.

“Young Canadians want to enjoy the present and also set themselves up for success – and whether they choose to enter the workforce, take a gap year, or pursue post-secondary education, CIBC is committed to helping young people realize their ambitions,” says John Ferren, Senior Vice-President, Deposits, Personal & Business Banking, CIBC. “This is why we’ve launched Smart Start, offering unlimited transactions, no monthly fees and a host of other benefits all the way up to our clients’ 25^th birthday.”

Introducing CIBC Smart Start
The CIBC Smart Start benefit, available to everyone up to their 25^th birthday when they sign up for a CIBC Smart account, makes banking easy and convenient with:

• No monthly fee;
• Free, unlimited transactions, including: sending money with Interac e-Transfer, Visa debit purchases, and paying bills;
• A fee rebate on one non-CIBC ATM withdrawal (in Canada) per month;
• Access to CIBC Insights (a feature available on the CIBC mobile banking app), which:
  • Tracks and summarizes spending across categories;
  • Flags duplicate transactions;
  • Flags when your bills are higher or lower than usual;
  • Encourages savings;
  • Enables you to set spending limits at your favourite shops and spots;
• CIBC Smart Balance Alerts, a text alert you can receive when you’re low on funds, so you can transfer funds to avoid declined payments and a non-sufficient funds (NSF) fee; and,
• No-fee trading with CIBC Investor’s Edge, including free online stock and ETF trading, with no annual account administration fees and no minimum balance required.

Saving remains a challenge
While 69 per cent of young Canadians (aged 18-24) consider themselves to be ‘good at saving’ and 48 per cent describe themselves as “savers,” when asked about their monthly saving habits, 42 per cent say they are unable to save right now.

“Every little bit counts, especially in the early years of your financial journey,” says John Ferren. “Smart Start gives young people access to practical tools and features that make it easy to develop sound financial habits, and with no monthly fee, it means more dollars going towards the things or experiences they want most, or money they can put aside for the future.”

Gen Z more open about their finances than their parents – and willing to seek advice
More than two-thirds (69 per cent) of 18-to-24-year-old Canadians believe people their age are more open about discussing their finances than their parents were at the same age. But young Canadians are also worried about keeping up with their peers – half (50 per cent) feel they’re financially behind other people their age.

When it comes to seeking financial advice, 51 per cent of young Canadians lean on their friends and family for financial advice. Banks also remain an important area young Canadians turn to for financial information, with 35 per cent seeking the support of a financial advisor or staff member at a bank, and 26 per cent going to their bank’s website. As for online forums and other websites? Only 16 per cent of 18-to-24-year-old Canadians turn to sites like Reddit and message boards, with the same percentage looking to financial or general news sites or newspapers for guidance.

Support for students
In addition to Smart Start, CIBC has products, resources and partnerships to specifically support students pursuing post-secondary education, including:

• A variety of credit card options so they can earn rewards while building a credit history;
• An education line of credit;
• Free SPC+ membership for eligible student and youth clients;
• Access to exclusive partner programs and content with Student Life Network, and,
• A new digital Student Budget Calculator that easily guides students through the process of building a full-year budget, with valuable insights on how to fund their post-secondary education, build savings, manage spending, and more.

For students graduating at age 25 years or over, the CIBC Smart Account with the CIBC Smart for Students benefit is available until the graduation date plus six months, up to a maximum of four-and-a-half years.

SOURCE CIBC