Money Matters to Young & Old
Ray Hoger Vice President, ARTA
Recently, a millennial told me about a trick she’ d learned from her mom: She builds her budget using ninety per cent of her monthly income— the other ten per cent goes straight into her savings account. Impressive!
Money is the primary source of stress and concern for Canadians today. This is the not-so-surprising conclusion from a survey conducted by Leger, a Canadian market research firm, for FP Canada, a national not-for-profit organization that certifies financial planners across Canada.
Forty-two per cent of Canadians cite money as their main concern. Personal health and relationships are a distant second and third. A fifth of all respondents, no matter their age, deeply regret not saving or investing more, and earlier.
A notable takeaway from the survey is how different generations view specific financial concerns. The survey reveals that younger Canadians( 18 – 54) worry much more about meeting monthly expenses and saving for retirement than older Canadians( 55 +), to the point of losing sleep over their finances.
Despite this concern, younger Canadians are surprisingly much less likely to consult a financial professional than Canadians over 55.
What effect does this situation have on relationships between our various generations? I wandered down to a local seniors’ facility and spoke with several members willing to discuss money matters.
Wise Words for the“ Youngsters”
One popular sentiment I heard was“ Don’ t spend money on stuff just because your friends did.” For example, several men and one woman proudly talked about their older vehicles.“ It doesn’ t look nearly as nice as when I bought it, but it runs” and“ It runs just fine” were some of the comments in support of holding onto vehicles for longer.
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