CANADIANS NOT AS FINANCIALLY SMART AS THEY THINK
By Adnews Staff
Canadians perceive themselves as being more financially savvy than they actually are, according to a study done by Dun & Bradstreet. Although Generation X-ers and baby boomers say financial soundness is very important to them, most are carrying higher debt loads and have less disposable income than they did two years ago. Respondents to the survey rated financial soundness as the second most important factor in life, followed by friendship. Family life rated number one. Nearly two-thirds said their current household debt has increased or stayed the same in the past two years. Leading the list of debt sources are credit cards, followed by mortgages, bank loans and car loans/leases. Yet, almost half of the respondents expect to be out of debt within the next three years. Ninety-four per cent of Canadians feel they are comfortable with their current and future personal finances and almost 75% feel that financial information is easy to access. However, 22% of them find the topic too boring, while 54% don't have time to devote to the topic. When Canadians decide to find more financial information, their three primary sources are banks, financial planners and accountants. But when it comes to the final decision, it will be done with their spouse or significant other. Eighty-three per cent of respondents said they are saving money and 74% claim to be saving specifically for retirement. The number one saving vehicle are saving accounts, followed by RRSPs, mutual funds and stocks or bonds. The survey was commissioned by Primerica Financial Services - Canada.