One third of millennials report negative feelings about seasonal spending
MONTREAL, Nov. 21, 2018 /CNW/ - A new report from Mylo, the goal-based investing app, finds that millennials across Canada are not looking forward to the holidays. Nearly one third of millennials (29 per cent) report negative feelings associated with the holidays, and 17 per cent would opt to skip the holidays altogether, according to Millennial Holiday Spending in Canada, 2018. The report, which surveyed 1,500 Canadian millennials (18 - 34 years old), also found that 58 per cent of respondents will not save up for seasonal spending this year yet 38 per cent will incur debt from holiday-related purchases.
"The holidays are supposed to be a happy time, but unfortunately our research found this isn't the case for many Canadians," said Phil Barrar, founder and CEO of Mylo. "Too many of us end up in debt as a result of this season because we overspend or simply don't save up enough. Mylo's mission has always been to help Canadians achieve their financial goals and improve their lives, and we see that saving just a little bit on a consistent basis can empower millennials to start the new year debt-free."
The report found that 56 per cent of respondents would change holiday gift-giving traditions in favour of their finances—27 per cent would prefer to receive cash in lieu of presents while over a quarter of millennials (29 per cent) would eliminate holiday gift-giving altogether. Many Canadian millennials also reported that holidays spending affects their emotional well-being, with 14 per cent indicating increased feelings of stress, 9 per cent reporting resentfulness, and 6 per cent reporting sadness associated with the season.
The survey also revealed insights on a provincial level:
- Millennials in Ontario spend the most during the holidays: 35 per cent will spend over $500, and 37 per cent will incur debt. Another 15 per cent will skip the holidays entirely.
- Quebec respondents are most likely to skip the holidays: 21 per cent will skip the celebrations this year. They are also the least likely to incur debt with only 35 per cent expecting the season will put them in the red.
- Atlantic Canadian millennials are most resentful about the holidays (10 per cent). They are most likely to spend money on gifts (60 per cent), and they are also the most likely to incur debt (45 per cent).
- Millennials in the Prairies are most likely to report feeling stress (17 per cent), and they are the most likely to incur over $500 of debt (20 per cent).
- British Columbia has the most positive outlook on the holidays. Almost half (45 per cent) of millennials say they are excited and love the holiday season. Yet, 40 per cent will incur debt.
Mylo found that over half of Canadian millennials who will incur debt during the holidays could have avoided it by saving just $500 for seasonal spending. Active users of the Mylo app automatically save and invest over $620 each year, which can be withdrawn at any time to put toward smaller short-term goals, like holiday shopping, as well as larger long-term goals.
The company also recently launched Mylo Advantage, a premium service that makes it even easier to save and invest with tax-free accounts, Socially Responsible Investing, valuable rewards from Mylo Perks, and next-day withdrawals.
The complete Millennial Holiday Spending in Canada, 2018 report, including raw data by province, is available here.
To learn more about Mylo, visit mylo.ai.
Mylo is the investing app that helps Canadians achieve their financial goals by rounding up their purchases and investing the spare change. Spend $3.25 on a coffee and Mylo rounds the bill up to $4.00 and invests the $0.75 in a fully-managed diversified investment portfolio. Mylo makes investing easy, affordable and accessible for all Canadians, regardless of how much money that have or how much they know about investing.
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