A special report from the BMO Real Financial Progress Index reveals nearly a third (30 per cent) of Canadians plan to cut back on spending for 2024 amid growing concerns about the cost of living and economic uncertainty.
Given concerns about the rising cost of living, 42 per cent of Canadians plan on changing their financial New Year’s resolutions, including creating financial goals and/or a budget for 2024 (17 per cent). As many as 44 per cent of Canadians do not make financial New Year’s resolutions, said the report.
Gayle Ramsay
“While many Canadians are looking forward to celebrating with family and loved ones, it is important not to get financially carried away during the holidays,” said Gayle Ramsay, Head, Everyday Banking, Segment & Customer Growth, BMO. “As many look forward to a fresh start in the new year, we want to empower Canadians to make real financial progress by encouraging them to get a head start on defining their financial goals, take advantage of online banking tools to conveniently set and monitor budgets, and work with a financial advisor to help build a plan and establish good financial habits.”
The special report explores how concerns about spending and economic conditions have affected Canadians’ financial anxieties and approaches to financial planning ahead of the new year:
- The Background on Holiday Bills: Over half (58 per cent) plan on using credit cards to pay for their holiday gifts. On average, Canadians believe it will take three months to pay back their holiday bills and 24 per cent are not confident they will be able to pay off their post-holiday bills on time.
- Financial Anxiety Analysis: The leading sources of financial anxiety are fear of unknown expenses (82 per cent), concerns about their overall financial situation (81 per cent), family-related expenses (65 per cent) and keeping up with monthly bills (61 per cent).
- Framing Financial Goals: The majority (68 per cent) of Canadians have set financial goals for themselves, including retirement planning (59 per cent), saving for a vacation (46 per cent), paying down debt (39 per cent) and saving for a large purchase such as a car, large appliance, etc. (36 per cent).
- Planning Prognosis: While most Canadians have financial goals, the majority do not have a financial plan (69 per cent) and/or a household budget for the year (60 per cent).
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list
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