Most people are focusing on their needs vs. their wants
TORONTO, Nov. 7, 2022 /CNW/ - A new CIBC survey finds over half of Canadians (56 per cent) are cutting back on discretionary spending in an effort to lessen the impact of rising costs for goods and services. Most people (81 per cent) are paying close attention to their finances so they can afford their needs before focusing on their wants.
- Ability to pay for unexpected expenses: 60 per cent
- Ability to save: 55 per cent
- Paying for day-to-day expenses: 48 per cent
- Meeting ongoing home expenses: 47 per cent
- Ability to invest/continue investing: 39 per cent
- Ability to make monthly mortgage payments: 27 per cent
Today's inflationary environment has many people looking to cut back on expenses and some say they are employing strategies such as couponing or looking for deals (37 per cent), more strictly adhering to a budget (36 per cent) and switching from brand name products to lower-cost options (36 per cent) as a way to combat soaring prices for everyday needs.
Many (55 per cent) Canadians say they also need to get a better handle on their finances this year with 60 per cent of respondents indicating they are concerned with their future ability to pay for unexpected expenses.
"As we continue to live through an evolving economic environment, Canadians are concerned about their ability to pay for day-to-day expenses and save for the future," said Carissa Lucreziano, Vice-President, Financial and Investment Advice, CIBC. "With November being Financial Wellbeing Month in Canada, it is a perfect time to take steps towards improving financial wellness and knowledge by connecting with an advisor."
On average, Canadians give themselves a 5.9 out of 10 when it comes to financial literacy, and many (55 per cent) say they wish they had a stronger level of financial knowledge.
- Investment advice/help building investments: 23 per cent
- Preparation for retirement: 21 per cent
- Strategies to offset inflation: 19 per cent
- Help managing cost of living: 15 per cent
"Canadians should know there are a number of resources available to assist them with improving their financial literacy and managing their expenses. From accessing online budgeting tools and calculators, to speaking with a financial professional about investing, we are here to help," added Lucreziano.
CIBC regularly hosts Smart Advice virtual events to support Canadian's financial wellbeing on topics such as investing, estate planning, goal-setting and more. The next virtual event taking place on November 30 - Inflation-proof your retirement - focuses on investment strategies to help build, preserve and keep your retirement savings on track, with every changing circumstance that life may bring your way. To register, please visit: https://www.cibc.com/en/special-offers/national-client-events.html?itrc=M673:21&#ondemand
CIBC is a leading North American financial institution with 13 million personal banking, business, public sector and institutional clients. Across Personal and Business Banking, Commercial Banking and Wealth Management, and Capital Markets businesses, CIBC offers a full range of advice, solutions and services through its leading digital banking network and locations across Canada, with offices in the United States and around the world. Ongoing news releases and more information about CIBC can be found at www.cibc.com/en/about-cibc/media-centre.html
Disclaimer:
From September 14 to 15, 2022, a Maru Public Opinion online survey of 1,520 randomly selected Canadian adults who are Maru Voice Canada panelists was executed by Maru/Blue. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of +/- 2.5%, 19 times out of 20. The results have been weighted by education, age, gender and region (and in Quebec, language) to match the population, according to Census data. This is to ensure the sample is representative of the entire adult population of Canada. Discrepancies in or between totals are due to rounding.
SOURCE CIBC
