Canadians with a more optimistic financial outlook tend to take proactive steps
Many Canadians are expecting inflation and cost-of-living to be the biggest financial challenge they will face in 2024, a survey conducted on behalf of TD Bank Group found.
According to the survey, about 36 percent of established Canadians, those who have lived in Canada for more than five years, were less positive about their financial outlook in 2024 compared to the previous year. In contrast, about 67 percent of new Canadians, those who have been living in the country for less than five years, were more optimistic compared to the previous year.
The survey also found that about 58 percent of established Canadians were expecting inflation or the cost of living to be the biggest financial challenges they will have to deal with in 2024. Meanwhile, only 38 percent of new Canadians shared the same sentiment.
“With another uncertain economic year projected, it isn't surprising that many Canadians aren't feeling optimistic about their finances as we head into 2024,” said Emily Ross, vice-pres, everyday advice journey at TD.
New Canadians’ optimistic financial outlook also extended to their financial goals as 97 percent of them have a new year’s resolution for their finances, while only 59 percent of established Canadians have this as well. About 92 percent of new Canadians planned to cut back on spending for 2014 while only 55 percent of established Canadians planned to do the same.
Taking proactive steps for financial stability
“Respondents with a more optimistic financial outlook tended to take proactive steps to ensure their financial stability and success, such as an increased focus on planning and professional advice,” said Ross.
Compared to those who lived in Canada longer, newer Canadians regularly seek professional financial advice, with 53 percent of them who have financial advisors saying that they meet with them once a quarter. Meanwhile, 43 percent of established Canadians who have qualified financial advisors only meet with them once a year.
About 66 percent of newer Canadians also said that they used budgeting tools such as spreadsheets or mobile apps when it comes to their finances while only 29 percent of established Canadians do so as well.
The survey was conducted among 1,062 randomly selected Canadians as well as 479 new Canadians who were 25 and older, excluding students.
