A snapshot of current research and statistics for Canadians and their families.
According to the 2019 Canadian Financial Capability Survey, about half (49 percent) of Canadians have a budget. The most common method of budgeting is using a digital tool such as a spreadsheet, mobile app or other financial software (20 percent).1
Among Canadians in the “Sandwich Generation” (those looking after children and parents), 27 percent expect to put their own financial goals on hold to provide support to both their children and their parents. Planning ahead is key, yet only one-in-four said they have a financial plan to help them deal with the pressures associated with supporting these family members.2
75%
are spending less overall.
62%
are using less cash.
53%
are using card or mobile tap payment more.
38%
are using e-commerce platforms more.
Read more about nine key financial planning tips.
According to the 2020 Financial Stress Index, 4 in 10 Canadians say the pandemic has impacted their financial stress levels, and half are losing sleep over financial worries. Notably, however, those with a financial planner feel more shielded from financial stress, with 53 percent saying it does not impact them.5
Canadians who have a plan to save are more confident in how much they need to save for retirement compared with those who don’t have a retirement plan (56 percent vs. 28 percent); they also feel more assured that their savings will provide for the lifestyle they envision (71 percent vs. 32 percent).4
Find out how a plan to invest regularly may help you save more over time.
Over the course of the pandemic, baking and cooking have become increasingly popular at-home activities and pastimes. According to a study in the Journal of Positive Psychology, engaging in small, creative projects can be an effective tool to promote well-being and positively impact emotional functioning. In fact, the findings revealed that cooking and baking made the participants feel more relaxed and happier in their everyday lives.6
Regular physical activity has been shown to help the brain’s capacity to grow, repair and improve — at every age. In adults, the hippocampus (the area involved in memory, learning and emotion) starts shrinking after age 55 by about 1 to 2 percent per year. Research shows that just one year of moderate aerobic exercise (activities that make you sweat and get your heart rate up) three times per week can increase its size by 2 percent. And, strength training has been shown to enhance brain function by 11 to 17 percent.9
According to recent research, Canadians who sleep more than 6 hours a night report lower stress levels and a better work-life balance than those who get less shuteye. But despite the benefits of more rest, over half of Canadians are willing to cut back on their sleep to accomplish more in their day.8
Find out more about wellness practices.
According to a recent survey, 49 percent of Canadian respondents said they have no savings set aside for an emergency.10
Based on the most recent Census data, just over 40 percent of Canadians contribute to a Tax-Free Savings Account (TFSA). As a savings option, TFSAs are more popular among individuals under age 35 and those over age 55.11
Among Canadians who are not yet retired, about 7 in 10 are preparing financially.12
Interested in learning more about TFSAs? Read this article.
This document has been prepared for use by the RBC Wealth Management member companies, RBC Dominion Securities Inc. (RBC DS)*, RBC Phillips, Hager & North Investment Counsel Inc. (RBC PH&N IC), RBC Global Asset Management Inc. (RBC GAM), Royal Trust Corporation of Canada and The Royal Trust Company (collectively, the “Companies”) and their affiliates, RBC Direct Investing Inc. (RBC DI) *, RBC Wealth Management Financial Services Inc. (RBC WMFS) and Royal Mutual Funds Inc. (RMFI). *Member-Canadian Investor Protection Fund. Each of the Companies, their affiliates and the Royal Bank of Canada are separate corporate entities which are affiliated. “RBC advisor” refers to Private Bankers who are employees of Royal Bank of Canada and mutual fund representatives of RMFI, Investment Counsellors who are employees of RBC PH&N IC, Senior Trust Advisors and Trust Officers who are employees of The Royal Trust Company or Royal Trust Corporation of Canada, or Investment Advisors who are employees of RBC DS. In Quebec, financial planning services are provided by RMFI or RBC WMFS and each is licensed as a financial services firm in that province. In the rest of Canada, financial planning services are available through RMFI or RBC DS. Estate and trust services are provided by Royal Trust Corporation of Canada and The Royal Trust Company. If specific products or services are not offered by one of the Companies or RMFI, clients may request a referral to another RBC partner. Insurance products are offered through RBC Wealth Management Financial Services Inc., a subsidiary of RBC Dominion Securities Inc. When providing life insurance products in all provinces except Quebec, Investment Advisors are acting as Insurance Representatives of RBC Wealth Management Financial Services Inc. In Quebec, Investment Advisors are acting as Financial Security Advisors of RBC Wealth Management Financial Services Inc. RBC Wealth Management Financial Services Inc. is licensed as a financial services firm in the province of Quebec. The strategies, advice and technical content in this publication are provided for the general guidance and benefit of our clients, based on information believed to be accurate and complete, but we cannot guarantee its accuracy or completeness. This publication is not intended as nor does it constitute tax or legal advice. Readers should consult a qualified legal, tax or other professional advisor when planning to implement a strategy. This will ensure that their individual circumstances have been considered properly and that action is taken on the latest available information. Interest rates, market conditions, tax rules, and other investment factors are subject to change. This information is not investment advice and should only be used in conjunction with a discussion with your RBC advisor. None of the Companies, RMFI, RBC WMFS, RBC DI, Royal Bank of Canada or any of its affiliates or any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this report or the information contained herein.
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