RBC survey reveals only 18% of young Canadians expressing confidence in their financial future, down from 31% a year ago.
Fewer than 1/5 of young Canadians feel confident about their financial future, a significant decline from last year.
That’s according to an RBC survey on how young Canadians are assessing their future financial prospects.
18% of Canadians between the ages of 18-34 expressed confidence, down from 31% among that same group last year.
77% said they are worried about their cash flow.
52% said they were unprepared for high inflation, and gave the following reasons:
“47%: “I just never experienced high inflation before.”
43%: “I didn’t anticipate how it would affect my ability to pay for basic needs.”
34%: “I was already living paycheque to paycheque.”
32%: “I didn’t anticipate how it would affect my ability to save/invest for the future.”
More difficult economic conditions have led many young Canadians to pay closer attention to their finances:
“One action taken by young Canadian adults: they are now paying closer attention to their finances. This includes: day-to-day living expenses (jumped to 62% versus 48% a year ago); managing debt (rose to 34% versus 27%); and the value of their investments (moved up to 25% versus 20%). And they are looking to investments to help them rebuild their savings and reclaim their financial future.”
With wages continuing to lag behind inflation, Canadians – including many young Canadians – are having to make more difficult decisions to try and keep their heads above water.
Higher interest rates are also having an impact, as many young Canadians are carrying a significant amount of debt.
Spencer Fernando
