42% of those polled find it difficult to set aside money despite considering themselves 'savers'
New research from one of Canada’s Big Six banks offers a glimpse into how financial stress can set in quickly, even in early adulthood.
According to a new poll by CIBC, around two thirds (65%) of young Canadians – defined as Canadians aged 18-24 years old – are concerned about living expenditures. The most common source of financial stress among young Canadians is a lack of disposable income, with more than a third (38%) citing this as a significant financial issue.
While 69% of young Canadian respondents consider themselves "excellent at saving" and 48 percent define themselves as "savers," 42% believe they are now unable to save. Saving is proving to be a challenge for most.
"Every little bit counts, especially in the early years of your financial journey," says John Ferren, Senior Vice-President, Deposits, Personal & Business Banking, CIBC.
The poll findings indicate that Gen Z is more open about their finances than previous generations, and they are more willing to accept guidance. More than two thirds (69%) of young Canadians say people in their age group are more open about talking money than their parents were at the same age.
However, young Canadians are also concerned about keeping up with their contemporaries, with half (50%) believing they are financially behind their friends.
The study also looked at the different sources of financial information and advice young Canadians turn to.
Even though 51% of young Canadians seek financial advice from friends and relatives, banks continue to be a popular source of financial advice for young Canadians, with 35% receiving assistance from a bank's financial advisor or staff, and 26% visiting their bank's website.
Only 16% of Canadians aged 18 to 24 use Reddit and message boards for information, whereas the same percentage use financial or general news sites or newspapers.