November is Financial Literacy Month

Submitted by: Shelley Clayton

Director, Financial Aid, University of New Brunswick (Fredericton Campus)

Some Interesting facts to consider:

  • In recent numbers released from Statistics Canada, Canadians’ household income has increased 1.2 per cent in the last quarter. Sounds like great news--right? Not really. During the same quarter, household credit market debt rose by 1.9 per cent. Simply put, the average Canadian carries $1.68 in debt for every dollar of disposable income. This covers consumer credit, mortgages and loans, for a nationwide total of more than $2 trillion (yes, trillion).
  • Based on Statistics Canada, almost half of Canadians are now living paycheque-to-paycheque, therefore, even the smallest financial hit can have major consequences.
  • A national survey conducted by Leger* on behalf of Financial Planning Standards Council (FPSC) has found that 42 per cent of Canadians rank ‘money’ as their greatest stress. That stress is driving Canadians to lose sleep, reconsider past financial decisions, argue with partners and lie to family and friends. 
  • Between July 31 to August 3, 2017, Leger* also conducted an on-line survey of 1527 Canadians and discovered that more than half (53%) of Canadians with children say their children are dependent on them financially and 30% say their children are causing a strain on them financially. Three-in-ten (31%) say that assisting their children with post-secondary costs will or already has postponed their retirement and already has or will prevent them from paying of their debt.
  • Some highlights from the Recent statistics from Global News/Ipsos Reid poll showed: (https://globalnews.ca/news/1819345/smart-money-canadians-stressed-about-finances-as-debt-levels-rise-exclusive-poll-finds/):
    • 40% are stressed about saving for retirement;
    •  Saving for big-ticket items, like a car or a down payment for a home, is another cause of stress for four in 10;
    • Paying bills on time and credit card debt is a cause of stress for one in three;
    • Mortgage or rent payment concerns affect one in three;
    • 25% are stressed about caring for their dependents like aging parents or kids.

 

“A budget tells us what we can't afford, but it doesn't keep us from buying it”

~ William Feather