Edward Jones poll: Canadians wonder how their friends afford their lifestyles

Looking at friends' spending increases the drive to buy; 93 per cent experience buyer's remorse

MISSISSAUGA, ON, July 23, 2018 /CNW/ - A new study from investment firm Edward Jones discovered a majority (61 per cent) of Canadians often look to their friends and wonder how they can afford their lifestyles. This was felt most among those aged 18-34 (71 per cent) and 35-44 (66 per cent) who are curious to understand how those around them finance their purchases.

The poll revealed looking at the purchases of others, may influence Canadians to buy items beyond their budget. This is shown by an overwhelming majority (93 per cent) of Canadians citing they experience buyer's remorse and admit to regrettable spending habits.

When it comes to age, 96 per cent of those aged 18 to 34 experience remorse following a purchase. Not far behind were boomers, with 90 per cent feeling the same once they've left the cash register.

The survey also examined the type of purchases Canadians are most likely to regret making and found:

• Eighty-three per cent regret tangible purchases such as, clothing/shoes (35 per cent); jewelry (28 per cent); and electronics (26 per cent).
• Of that, millennials were more likely to regret spending money on clothing/shoes (47 per cent), while boomers were more likely to regret spending money on jewelry (34 per cent).
• Canadians tend to regret tangible purchases (83 per cent) more than experiential purchases (71 per cent).

"Understanding how you spend money is important when considering your short and long-term goals," said Roger Ramchatesingh, Director, Solutions Consulting at Edward Jones. "For example, if you know you enjoy spending money spontaneously, build this into your monthly budget. When it is unplanned for, it can add up over time and hurt other long-term goals such as retirement or the purchase of a home."

Additionally, the poll found that only 44 per cent of respondents have a strategy in place and adhere to it. When it comes to age, 75 per cent of Canadians believe they should have their finances in order between 18-34, yet only 38 per cent in that age group have a financial strategy and follow it. Close behind are those aged 35-44 with only 44 per cent of that age group having a strategy in place, despite 46 per cent believing finances should be in order by then.

"It's never too late to get your finances in order," added Ramchatesingh. "A financial advisor can help develop a financial strategy that addresses what is most important to you and help you towards the lifestyle you desire."

"By following and executing a proven and thoughtful process, you can have more confidence," said Ramchatesingh. "It's clear that when people have a financial strategy in place and work with someone they trust, they feel more comfortable with their finances."  

A survey of 1565 Canadians was completed online between May 23 to 26, 2017 using Leger's online panel, LegerWeb. A probability sample of the same size would yield a margin of error of +/-2.5%, 19 times out of 20.

About Edward Jones
Edward Jones is a full-service investment dealer with one of the largest branch networks in Canada. It is a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund, and a participating organization of the Toronto Stock Exchange.

SOURCE Edward Jones

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