Financial blind spots: Close to 40% of Canadians feel their financial futures are not under control
Oct 17, 2017, 13:35 ET
TORONTO, Oct. 17, 2017 /CNW/ - A survey commissioned by Financial Planning Standards Council (the organization that confers the Certified Financial Planner® designation in Canada) evaluated the financial habits and behaviour of Canadians and found a significant number are turning a blind eye to their personal finances due to confusion, a lack of knowledge or simply being overwhelmed. The Financial Blind Spots survey, conducted by FPSC, found that four-in-10 Canadians (39%) feel they don't have their financial future under control, while three-in-10 (29%) admit they are overwhelmed with their financial options.
"The results of the FPSC survey bring to light the emotional side to personal finances and a need for vigilance when it comes to being informed," said author, personal finance educator and FPSC's Consumer Advocate, Kelley Keehn. "A great number of Canadians lack clarity in terms of preparing financially for the next chapter of their lives."
The survey posed a series of scenarios to Canadians age 18 and older regarding their financial future, current understanding of their finances and their use of outside resources to clear the confusion when it comes to personal finances. According to the results of the FPSC study, 39% of Canadians admit they are unclear of their long-term financial goals, and almost half of Canadians (49%) do not know how much they need to save for their retirement.
The survey also showed that nearly one-in-five Canadians (18%) believe that they do not need an emergency fund, while 15% use credit without understanding the long-term consequences.
"People can often get paralyzed by all the information available – to the extent that they just shut their minds off," said Keehn. "It's critical to have a financial plan, yet many Canadians don't. A Certified Financial Planner professional can open your mind to what is possible and get you moving in the right direction."
CFP® professionals create clarity
CFP professionals take a big picture view of each individual, including their lifestyle, financial needs and priorities. Without this broad approach, it's like trying to see out a window with the curtains half-closed. It takes a full view to understand and make the right decisions about every aspect of personal finances.
The full results of FPSC's Financial Blind Spots survey can be found here.
About Kelley Keehn
Kelley Keehn is an award-winning author, personal finance educator and is the Consumer Advocate for the Financial Planning Standards Council (FPSC). She has written nine books on personal finance including Protecting You and Your Money; A Guide to Avoiding Identity Theft and Fraud and A Canadian's Guide to Money Smart Living. Kelley is the Marilyn Denis show's personal finance expert, was the host of the W Network's Burn My Mortgage, sat on the National Steering Committee on Financial Literacy and is a member of the OECD's International Network on Financial Education.
About Financial Planning Standards Council
As a professional standards-setting and certification body working in the public interest, FPSC's purpose is to drive value and instill confidence in financial planning. FPSC ensures those it certifies―Certified Financial Planner® professionals and FPSC Level 1® Certificants in Financial Planning―meet appropriate standards of competence and professionalism through rigorous requirements of education, examination, experience and ethics. With FPSC's formal partnership with the Institut québécois de planification financière (IQPF), which is the only organization authorized to certify Financial Planners in Québec, there are more than 23,500 Financial Planners in Canada who have met, and continue to meet, FPSC's standards. More information is available at FPSC.ca and FinancialPlanningForCanadians.ca.
About the "Financial Blind Spots" Survey
Leger conducted a survey of 1527 Canadians online between July 31 to August 3, 2017 using its online panel, LegerWeb. A probability sample of the same size would yield a margin of error of +/-2.5%, 19 times out of 20. Leger's online panel has approximately 475,000 members nationally – with between 10,000 and 20,000 new members added each month, and has a retention rate of 90%.
SOURCE Financial Planning Standards Council
For further information: Lyndsay Wallis, Account Executive, MAVERICK, Office: 416-640-5525 x 240, Mobile: 226-979-6941, Email: [email protected]