Young Canadians give themselves the lowest grades for managing their finances in 2023

Young Canadians give themselves the lowest grades for managing their finances in 2023

Those under 35 are also likely to recognize the need for financial education to improve their outlook

TORONTO, Jan. 31, 2024 /CNW/ – A new poll by Simplii Financial reveals that while most Canadians give themselves excellent grades for managing their finances in 2023, young Canadians -assign themselves the lowest grades and tend to admit they need more help.

Simplii Financial logo (CNW Group/Simplii Financial)Simplii Financial logo (CNW Group/Simplii Financial)

Simplii Financial logo (CNW Group/Simplii Financial)

Reflecting on their financial behavior in 2023, most Canadians gave themselves an “A” or “B” for tasks such as covering the cost of daily necessities (76 percent), building and maintaining a healthy credit score (74 percent), meeting immediate financial needs (74 percent), supporting themselves and their family financially (69 percent), and spending economically (67 percent ). However, as the country as a whole graded itself, young Canadians (aged 18 to 34) proved to be the hardest scorers by giving themselves the lowest results in 15 of 21 financial criteria.

“Rising costs of living and high interest rates have had a real impact on young Canadians over the past year,” said Bob Cancelli, Managing Director and Head, CIBC Direct Financial Services and Simplii Financial . “As this generation continues to face a challenging economic environment, it’s encouraging to see that they recognize the importance of building their financial literacy.”

Those under 34 years of age are almost twice as likely to recognize that seeking more financial education would help them in 2023 (63 per cent) compared to older Canadians (34 per cent). They’re also nearly twice as likely to admit they need more help managing their finances (61 percent) than their older peers (34 percent), and are more likely to say they’ve learned a lot to help. to manage their finances (68 percent). compared to 55 percent).

The start of a new year is a good time to evaluate financial goals for the short and longer term. Some tips from Simplii Financial include:

  1. Dealing with debt—Prioritize paying off anything with a higher interest rate, such as credit cards or personal loans. Not prioritizing high-interest debt can mean you end up spending a lot of money over time in accrued interest.

  2. Pay yourself first—Setting up small transfers from each paycheck to a registered investment account can really add up. If your account balance grows, try adding a few dollars. The same principal can be used to pay off the loan.

  3. Don’t just save—whether it’s GICs, ETFs, individual stocks, bonds or options, investing can be a helpful way to stay ahead of the rising cost of living and setting up a CIBC Investor’s Edge account can be a good place to start.

  4. Reduce recurring expenses—Requoting insurance, refinancing a loan, renegotiating a phone or internet plan, or switching to a no-monthly-fee bank can save you hundreds of dollars per year.

Disclaimer

This Maru Public Opinion survey conducted for Simplii Financial/CIBC was conducted by the sample and data collection experts at Maru/Blue. 1502 randomly selected Canadian adults who Maru Voice Canada online panelists were surveyed from November 2 to November 3, 2023. The results of this study were weighted by education, age, gender and region (and in Quebec, language) to match the population, according to Census data. This is to ensure that the sample is representative of the entire Canadian adult population. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of +/- 2.6%, 19 times out of 20. Differences in or between total compared to the data tables is due to rounding. .

About Simple

Simplii Financial provides direct banking services to approximately 2 million Canadians with 24/7 access to online, mobile, and telephone banking with no monthly fees. Simplii clients can also access one of the largest national ATM networks through CIBC. For more information about Simplii Financial, please visit www.simplii.com or by following X @SimpliiFin, Instagram @SimpliiFin, or on Facebook.

SOURCE Simplii Financial

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