Canadians may not be as savvy as they think when it comes to saving

Almost a third of Canadians regularly "tap" into their savings to splurge on unexpected purchases

TORONTO, March 3, 2015 /CNW/ - While Canadians often look for ways to stretch their dollars and save, a survey released by Tangerine today revealed that just 25 per cent of Canadians identify themselves as "Supreme Savers" with a  steady savings plan and almost a third (31 per cent) admit to not using their savings towards what they originally intended.

The survey asked Canadians to classify their current saving style using four different saving profiles:  Supreme Savers (25 per cent), DIY Savers (34 per cent), Savers In-The-Making (24 per cent) and Non-Savers (16 per cent).

Despite varying profiles, the results uncovered that Canadians on average regularly tap into savings to splurge on an unexpected purchase (29 per cent), regularly use their long-term savings for things like trips, car purchases, interior decorations, etc… (33 per cent), or never use their savings towards what they were saving for in the first place (32 per cent). 

"There is no doubt that saving money can be difficult, and at Tangerine we strive to make it easier by providing simple tools and resources to help along the way," said Silvio Stroescu, Managing Director of Deposits and Investments at Tangerine. "One of the simplest ways to save is by setting up an Automatic Savings Program (ASP), so money automatically goes into savings without you having to think about it. This can result in more savings, ensuring you're covered for both your long-term goals and the unexpected."

CANADIAN SAVING STYLES SNAPSHOT


Supreme Saver

 

You have a steady savings plan. Not only do you put money away, but you do it automatically so you don't even have to think about it

DIY Saver

 

You're dedicated to savings. You're online making sure your savings get where they need to be.

Saver In-The-Making

 

You don't yet take action towards a savings plan. Your goal is to make a plan and stick to it.

Not a Saver – yet

 

You haven't yet looked at where or how to save but are looking to take that first step.

Percentage of Canadians that self- identify with profile

25%

34%

24%

16%

How much of your monthly income do you put into a savings account?

Over $500 per month (23%)

Under $100 per month (27%)

Under $100 per month (48%)

Nothing (58%)

What is your preferred method of saving? (Top answer)

In my RRSP, TSFA or GICs (70%)

In my RRSP, TSFA or GICs (57%)

Savings account (40%)

Savings account (38%)

Do you have an automatic savings withdrawn from your chequing account?

Yes (56%)

Yes (29%)

Yes (28%)

Yes (11%)

 

CANADIAN SAVING FACTS

Other interesting data that the survey revealed:

  • 50 per cent of Canadians have no savings goals
  • The majority of Canadians (56 per cent) are saving less than $25 per week ($100 per month)
  • 32 per cent of Canadians are saving for retirement
  • 10 per cent of Canadians are looking to save more than $10,000 in 2015

From now until November 30, 2015, Canadians who open a Tangerine Account and set up an ASP will be automatically entered for a chance to win cash prizes. Every $25 put away in an ASP earns a ballot to win. Every month, Tangerine will draw for three winners of $1,500. Then in December 2015 there will be one grand prize draw for $50,000. Please see Tangerine.ca for full contest details. 

Information, tips and guidance from Tangerine on how to reach your personal savings goals is available at: Forwardthinking.tangerine.ca

Survey methodology

From February 18 to February 19, 2015, an online survey was conducted among a sample of 1003 Canadians aged 18+ that are also Angus Reid Forum panel members. The margin of error — which measures sampling variability — is +/-3.1%, 19 times out of 20. Discrepancies in or between totals are due to rounding.

About Tangerine

Tangerine is a direct bank that delivers simplified everyday banking to Canadians. With more than 1.9 million clients and close to $38 billion in total assets, we are Canada's leading direct bank. Tangerine offers banking that is flexible and accessible, products and services that are innovative, fair fees, and award-winning client service. From no-fee daily chequing and high-interest savings accounts, GICs, RSPs, TFSAs, mortgages and mutual funds, Tangerine has the everyday banking products Canadians need. With over 1,000 employees in Canada, our presence extends beyond our website and Mobile Banking app to our 24/7 Contact Centres and our Café locations. Tangerine was launched as ING DIRECT Canada in 1997. In 2012 it was acquired by Scotiabank, and operates independently as a wholly-owned subsidiary. For more information, visit tangerine.ca.

SOURCE Tangerine

For further information: Cayley Kochel, Corporate Communications, 416 497 5157 x 4013, ckochel@tangerine.ca

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