BMO reveals a significant gender gap in economic pressures from inflation and living costs
The BMO Real Financial Progress Index has unveiled that Canadian women are significantly more affected by the economic strains of inflation and the rising cost of living compared to men.
Specifically, the survey found that women are 12 per cent more likely to report increased concerns over inflation (63 per cent vs. 51 per cent) and the cost of living (66 per cent vs. 54 per cent).
The index delved into the financial confidence and planning approaches of Canadians, revealing a notable gender gap in several areas:
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Economic Pressures: A larger portion of women, 63 per cent, have grown more concerned about inflation in the past three months, against 51 per cent of men. Similarly, 66 per cent of women feel more anxious about the cost of living, a sentiment that is 12 per cent higher than that expressed by men.
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Financial Security: Forty-three per cent of women report an increase in financial situation concerns over the last three months, which is 8 per cent higher than men. Additionally, women are more likely to feel less confident and financially secure compared to the previous year, with a 7 per cent and 5 per cent difference, respectively. Interestingly, 69 per cent of men believe they have sufficient emergency savings, compared to 63 per cent of women.
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Financial Progress: Women are less optimistic about making real financial progress, with an 8 per cent gap compared to men (29 per cent of women vs. 37 per cent of men). Moreover, 35 per cent of women feel that financial future uncertainties hinder their progress, 5 per cent more than their male counterparts.
Gayle Ramsay, head of everyday banking, segment, and customer growth at BMO, emphasized the importance of supporting women in overcoming these challenges to achieve financial security and wealth-building opportunities.
BMO commits to assisting women through financial planning and literacy, essential for empowerment and progress.
Despite three-quarters of women feeling in control of their finances, there's a gap in financial planning and budgeting compared to men. Women's top financial goals include retirement savings, vacation funding, debt repayment, and major purchases.
However, less than half of women reported family support in financial literacy growing up, a contrast especially stark among younger Gen Z women, who are more likely to have received such support.
BMO encourages several practices for financial improvement, such as cash flow awareness, goal setting, credit building, budgeting for large purchases, debt management, expense assessment, and consulting with financial advisors.
These practices, alongside BMO’s digital tools like BMO SmartProgress, BMO CreditView, BMO Insights, and the BMO Savings Amplifier Account, aim to enhance personal finance management and progress for women and all Canadians.
