A new Simplii Financial poll reveals that while most Canadians gave themselves excellent grades on managing their finances in 2023, younger Canadians assigned themselves the lowest grades and were most likely to admit they need more help.
Reflecting on their financial behaviour during 2023, most Canadians gave themselves either an “A” or “B” for tasks such as covering the cost of daily essentials (76 per cent), building and maintaining a healthy credit score (74 per cent), meeting immediate financial needs (74 per cent), supporting themselves and their family financially (69 per cent), and spending economically (67 per cent). However, while the country as a whole graded itself highly, young Canadians (aged 18 to 34) proved to be the toughest markers by assigning themselves the lowest results on 15 of the 21 financial behaviours.
“Increases in the cost of living and high interest rates had a real impact on younger Canadians over the last year,” said Bob Cancelli, Managing Director and Head, CIBC Direct Financial Services and Simplii Financial. “While this generation is continuing to face a challenging economic environment, it’s encouraging to see they recognize the importance of building their financial knowledge.”
Those under 34 years old were nearly twice as likely to recognize that seeking out more financial education would have helped them in 2023 (63 per cent) compared to older Canadians (34 per cent). They were also nearly twice as likely to admit to needing more help to manage their finances (61 per cent) than their older peers (34 per cent), and more likely to say they learned a lot to help manage their finances (68 per cent versus 55 per cent).
The start of a new year is a great time to assess financial goals for both the short and longer-term. Some tips from Simplii Financial include:
- Deal with debt—Prioritize paying off anything with higher interest rates, like credit cards or personal loans. Not prioritizing high-interest debt could mean you’re spending a significant amount of money over time on accumulated interest.
- Pay yourself first—Setting up small transfers from every paycheque to a registered investment account can really add up. If your account balance grows, try adding a few more dollars. The same principal can work for paying off debt.
- Don’t just save—Whether it’s GICs, ETFs, individual stocks, bonds or options, investing can be a helpful way to get ahead of the rising cost of living and setting up a CIBC Investor’s Edge account may be a good place to start.
- Shrink recurring expenses—Getting requoted on insurance, refinancing a loan, re-negotiating a phone or internet plan, or switching to a no-monthly-fee bank could save you hundreds of dollars annually.
