TORONTO, May 21 /CNW/ - Despite the current volatile economic
environment, only a quarter (22 per cent) of Canadians are saving more than
they did before, according to a new Account Habits poll released today by RBC.
In fact, 43 per cent of respondents are maintaining their current spending
habits while one fifth (20 per cent) are spending more.
"One need only look at the newspapers or television to see that
North America is in an economic downturn," said Ashif Ratanshi, senior
vice-president, RBC Branch Investments and Banking. "This is the time for
Canadians to re-assess their own finances and ensure they are effectively
managing their money so that they can withstand any sudden pitfalls or changes
in their lives."
One of the poll's key findings was that on average most Canadians do not
believe they are good savers. In fact, the majority (83 per cent) are worried
they don't have enough money saved, and 86 per cent feel that they can't save
as much as they would like. Less than one half of Canadians (49 per cent) have
a rainy day account set up for an emergency. Of those that do, 55 per cent
have only enough saved to cover one-month's worth of expenses, while 24 per
cent have three-month's worth of expenses covered.
Many Canadians are also not prepared to cope with an unexpected long-term
emergency or sudden life-changing event. Surprisingly, sixty-five per cent of
respondents consider their line of credit and credit cards to be their backup
in case of an emergency, while 60 per cent of the more than one million
Canadians who keep $1,000 or more in their bank account each month, consider
that money to be their safety net.
Even though the poll found that being financial prepared for an emergency
is a priority for many Canadians, it only ranks fifth out of a list of nine
priorities. In fact, Canadians rank saving for retirement, paying down debt,
paying down one's mortgage faster and saving for children's education ahead of
saving for an emergency. As well, a third of respondents agreed that they do a
poor job at putting money aside for these priorities.
So how do Canadians spend their pay check? Almost two-thirds (63 per
cent) allocate some towards household bills, rent/mortgage and other regular
monthly purchases and the rest goes to savings; 34 per cent spend it all on
living expenses like bills; rent/mortgage and food with nothing left over; and
only three per cent are able to put their entire salary into savings.
"In looking at the results from the poll, it is clear that many Canadians
need to make a plan or budget to help them achieve their financial
priorities," said Mr. Ratanshi. "Small changes such as finding the right bank
account, paying off debt quickly or arranging for monthly withdrawals into a
GIC or other investment can help Canadians optimize their savings."
These are some of the findings of an RBC poll conducted by Ipsos Reid
between March 13 and March 18, 2008. This online survey of 2,020 adult
Canadian bank account holders was conducted via the Ipsos I-Say Online Panel,
Ipsos Reid's national online panel. The results are based on a sample where
quota sampling and weighting are employed to balance demographics and ensure
that the sample's composition reflects that of the actual Canadian population
according to Census data.
For full tabular results, please see the Ipsos Reid website at
www.ipsos.ca.
For further information: Media Contact: Beja Rodeck, (416) 974-5506
