23% of Canadians feel less secure about their finances compared to last year
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Jun 03, 2022 • June 3, 2022 • 5 minute read • 5 Comments Nearly half of Canadians reported a decrease in savings due to rising costs. Photo by Getty/Thinkstock
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Canadians are beginning to lose confidence in their personal finances after more than a year of steady optimism, according to the Bank of Montreal’s quarterly Real Financial Progress Index.
The index found that almost a quarter (23 per cent) of Canadians feel less secure about their finances compared with last year. That’s an increase from 18 per cent just three months ago.
Most point to the impact of surging inflation on their personal finances.
A majority (61 per cent) of consumers said the country’s inflation rate, which reached a new 31-year high of 6.8 per cent in April, has had a substantial effect on their finances.
“The fastest and broadest inflation in three decades is forcing Canadian households not just to cut back on discretionary items, such as vacations, but also to alter purchases of necessities — in particular food,” Sal Guatieri, BMO’s senior economist, said in a press release.
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Nearly half of Canadians (49 per cent) reported a decrease in savings due to soaring costs.
Housing continues to be the most significant roadblock for many (37 per cent). But, monthly bills (up four points to 30 per cent) and credit-card debt (up two points to 23 per cent) are also keeping more Canadians from advancing financially than last quarter.</…….