Canadians Brace to Trim Personal Budgets in 2024: According to a study by BMO Economics, one-third of us plan to cut back on spending in the coming year in order to deal with money problems like the rising cost of living and the insecurity in the economy.
Canadians Brace to Trim Personal Budgets in 2024
This fall, Ipsos polled more than 2,500 Canadians and found that 31% of us plan to spend less and 42% have made it a New Year’s goal to do so.
But many people may find it hard to cut back.
BMO Economics found that while 68% of Canadians have set financial goals, almost the same number do not have a plan for how to reach those goals. 60% don’t even have a budget for their family.
You’re not the only one who thinks the holidays will make you spend a lot of money. What the poll found was that 58% of Canadians bought gifts with credit cards. It usually takes us three months to pay off those bills, but 24% don’t think they’ll be able to make it.
Gayle Ramsay, Head of Everyday Banking at BMO, said, “It’s important not to spend too much money over the holidays.” “We want to empower Canadians to make real financial progress by encouraging them to get a head start on defining their financial goals, take advantage of online banking tools to conveniently set and monitor budgets, and work with a financial advisor to help build a plan and establish good financial habits.”
BMO Economics says that in the spring and summer of 2024, real consumer spending didn’t change all that much. It thinks that it will stay flat this winter.
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Eighty-two percent of Canadians are worried about unknown costs, and eighty-one percent are worried about their total financial situation since 2024 is getting closer. 61% have trouble paying their monthly bills and 65% worry about how much their family spends.
Ramsay said, “Help may be on the way.” “Markets are now factoring in rate cuts from the Bank of Canada before the summer of 2024.” It also helps that inflation is going down and pay growth is still high.
The poll also found that 30% of Canadians don’t think they’ll reach their financial goals, but they think that working with a financial manager or investment company will help. There are now only 40% of people who work with a financial adviser.
