If you feel like your finances have gotten worse recently, you’re not alone. According to research conducted by Nanos Research for Bloomberg News, almost half (47%) of respondents said that their finances have worsened over the past year - one of the highest ever readings for this question.
The same survey found that the overall view for the economy is pessimistic, with 64% of respondents indicating that they expect the economy to deteriorate over the next six months.
This negative sentiment might make some sense in face of increasing debt loads for the average Canadian. According to Equifax, the average debt load in Canada (excluding mortgages) was about $21,000
and the average credit card debt was $2,121.
People seem to be taking some action to address those concerns, though. A recent survey from Zolo suggests that Canadians (or at least Canadian homeowners) are starting to establish and grow their emergency funds, with 83% saying they could go at least 30 days before running
out of money to pay their bills.
On the subject of Canadian homeownership, in April 2023 the government introduced the First Home Savings Account (FHSA), a powerful tax-advantaged savings tool to help more Canadians to join
the ranks of homeowners. And even if homeownership isn’t in your immediate plans, there are still other ways we can look to improve our finances.
In the 2022 Fall Economic Statement, the Canadian government released ways in which they are trying to help make life more affordable. While these initiatives may not be applicable to everyone, they will hopefully provide financial relief for at least some Canadians.