New study in support of Credit Education Week reveals while many struggle emotionally when they don’t reach their financial goals, they expect to fully recover in the long run
Toronto (October 30, 2014) – According to a new survey on personal finance, many young Canadians face delays and admit to taking an occasional wrong turn as they try to get their finances in order and reach their financial goals. But they are determined; 75 per cent take ownership for their mistakes and believe that they will fully recover from their financial setbacks. The research, commissioned by Credit Canada Debt Solutions in partnership with Capital One Canada, was carried out in anticipation of the eighth annual Credit Education Week, which runs from November 10-14 across the country.
Canadian Millennials have reached the age when it is time to gain financial autonomy and independence, but it doesn’t always come easy. The biggest obstacles they face trying to meet their financial goals are: Lack of Earning Power (35%), Unemployment (31%) and Lack of Budgeting, Planning and Saving (28%).
The rise of social media is playing a key role in this trend, sometimes referred to as “Failure to Launch,” with nearly one third (28 per cent) of Canadians under 30 claiming pressures from seeing their friends’ lives on Facebook directly impact their ability to reach their financial goals. With over half of Canadians (51 per cent) afraid someone will find out about the challenges they are having, pressures to appear successful in social channels can serve as a real concern. Add on the fact that three quarters blame themselves for their setback and many face significant emotional impact leading to 31% feeling like a loser, 30% feeling depressed and 23% being embarrassed.
“We understand that this trend is not only prevalent, but it can be emotionally taxing for many young Canadians trying to achieve financial success,” said Laurie Campbell, CEO of Credit Canada Debt Solutions. “It’s our mission to work with Canadians to provide the tools necessary to take control of their finances.”
There’s no denying that the financial challenges young people face are cause for concern, however there is hope. Of those who’ve had challenges meeting their financial expectations, 60 per cent cited having assistance, including a partner, online budgeting tools and financial or investment supports in place will help them launch in the future.
“These recent data reflect a large gap in credit and financial awareness among a key demographic here in Canada,” says Shane Holdaway, President of Capital One Canada. “At the same time, it is heartening to see that the right tools and support can have a positive impact on Canadians looking to succeed with credit.”
While the trend doesn’t discriminate between men and women, personal perspective and geography prove we’re not all equal. While men and women are virtually equal when it comes to experiencing a Failure to Launch, women are 67 per cent more likely than men to blame their partner for financial troubles due to a lack of money sharing. Where you live can also be a major factor: Residents from the West cited the largest money shortfall ($79k) causing their failure to launch compared to $31K, $31K and $40k for Ontario, Quebec, and the East respectively. Those on Canada’s East Coast are much less likely to experience challenges moving out (4 per cent) than elsewhere in the country (10 per cent in Quebec, 9 per cent in Western Canada and 6 per cent in Ontario).
- Develop a detailed plan that outlines your financial goals, ensure that you look at short, medium and long term objectives
- Find a mentor or life coach to work with you to help you achieve real change
- Share your goals with others for affirmation and support
- Be realistic about your expectations
- Create a journal to track your progress
- Reward yourself for taking small steps for big change
This year’s Credit Education Week is focused on the ‘Failure to Launch’, with a number of events, from workshops to contests, across the country aimed at addressing the failure of many Canadians to make responsible financial decisions. Visit www.cewc.ca to learn more.
About the Survey
In August 2014 an online survey was completed by Credit Canada Debt Solutions among 800 Canadians aged 18-65. The statistical significance for the survey is +/- 3.5%, 19 times out of 20. The results have been statistically weighted according to age, gender and region.
About Credit Canada Debt Solutions
Credit Canada Debt Solutions is a non-profit charitable service that has assisted thousands of people with credit counselling and debt management programs since 1966. Credit Canada Debt Solutions is a member of the Ontario Association of Credit Counselling Services and a Charter Member of Canadian Association of Credit Counselling Services.
About Capital One
With offices in Toronto and Montreal, Capital One has offered Canadian consumers a range of competitive MasterCard credit cards since 1996, and now includes the Aspire suite of rewards cards which are regularly cited by leading rewards experts for the great value they offer consumers. Capital One Bank (Canada Branch) is an authorized foreign bank branch of Capital One Bank (USA), N.A, a subsidiary of Capital One Financial Corporation of McLean, Virginia (NYSE: COF). Capital One believes in empowering Canadians to take control of their finances through programs and resources like Understanding-Credit.ca, Credit Education Week Canada, and the Capital One Financial Education Challenge.
Chief Executive Officer,
Credit Canada Debt Solutions
Manager, Corporate Communications
Capital One Canada