Personal finances

BMO Real Financial Progress Index – Holiday Edition: Younger Canadians Getting in the Spirit with Increased Spending and Savings – Yahoo Finance

Summary

TORONTO, Nov. 18, 2021 /CNW/ – Despite nearly half of Canadians and Americans showing increased confidence in their personal finances in the past year, both countries are approaching spending this holiday season with caution, according to new research from BMO’s Real Financial Progress Index.

BMO’s Real Financial Progress Index uncovered the following about holiday spending and savings habits:

Over 30 per cent of both Americans and Canadians report they plan to spend less on the h…….

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TORONTO, Nov. 18, 2021 /CNW/ – Despite nearly half of Canadians and Americans showing increased confidence in their personal finances in the past year, both countries are approaching spending this holiday season with caution, according to new research from BMO’s Real Financial Progress Index.

BMO’s Real Financial Progress Index uncovered the following about holiday spending and savings habits:

  • Over 30 per cent of both Americans and Canadians report they plan to spend less on the holidays this year – although Americans are seven per cent more likely to increase spending this year

  • Nearly 20 per cent of American men are planning to spend more this holiday season, compared to 11 per cent of Canadian men. In both countries, men are more likely to increase spending than women

  • A quarter of Millennial Americans plan to spend more on the holidays, compared to 12 per cent of Canadian Millennials

  • Among Canadians, Gen Z’s are the most likely (63 per cent) to save specifically for holiday spending, while those over the age of 65 are the least likely (41 per cent)

  • Almost half (47 per cent) of Gen Z Canadians are saving more for the holidays and this demographic is also most likely to be spending more this year (18 per cent)

“As recovery from the COVID-19 pandemic continues, it’s wonderful to see Canadians are gaining confidence in their financial situations,” said Gayle Ramsay, Head, Everyday Banking and Customer Growth, BMO Bank of Montreal. “Financial plans often get left by the wayside during the holidays and it’s encouraging to see younger Canadians proactively incorporating these additional expenses into their budgets.”

Making 2022 a Year of Financial Progress

The study found Canadians are seven per cent less likely than Americans to plan financial resolutions for 2022, at 49 versus 56 per cent respectively. Only 46 per cent of Canadian men plan to establish financial goals, compared to 57 per cent of American men. Over half of women from both countries say they will create financial goals for the new year.

Among Canadians who made financials resolutions, the most common goals are to save more than in previous years and to stick to a budget. Additionally, Canadians indicated the top three signs they are making financial progress are having an emergency fund, saving for retirement and paying down debt.

“New Year’s financial resolutions set clear goals and form habits that will help ensure real financial progress throughout the year, making Canadians more confident in their financial futures,” continued Ramsay.

BMO offers the following tips when setting financial goals: