A new national survey reveals Canadians' financial habits have moved to short-term goals during the COVID-19 pandemic.
The Credit Canada survey, conducted by pollster Angus Reid, reveals the pandemic has drastically affected consumer spending and confidence – with many running on "survival mode."
The poll found that paying bills is the top financial priority for Canadians (54 per cent). Meanwhile, 44 per cent said cutting back on spending takes precedence. Other financial priorities included:
- Having a positive bank balance at the end of the month (36 per cent)
- Having an emergency savings fund (35 per cent)
- Paying off debt (32 per cent)
- Having a high credit score/access to low interest credit (12 per cent)
“While it’s encouraging that Canadians are taking financial responsibility by focusing on paying bills and cutting back on spending, it’s significant that six-in-10 don’t consider a positive bank balance or an emergency savings fund as a matter of great importance,” said Credit Canada's Keith Emery. “Emergency saving funds are designed for just that – emergencies – and the COVID-19 pandemic has caused an emergency state.”
“Of additional concern, almost seven-in-10 don’t consider paying debt to be of great importance, and a staggering nine-in-10 do not prioritize having a high credit score,” said Emery. “While it’s hard to focus on all things at once, debt management and credit scores are an important part of the mix, especially during times of financial strain.”
As might be expected, having a positive bank balance at the end of the month was a top focus for younger Canadians (43 per cent).
Credit Canada is a not-for-profit credit counselling agency providing free and confidential debt and credit counselling, personal debt management, debt consolidation and resolutions. It also has a credit score resource page showing Canadians how to obtain their credit score, what it means, and how to work it into better shape.
