Scotiabank Money Readiness Poll finds 34% of Canadians adjusted their investment strategy as a result of the pandemic
TORONTO, Nov. 12, 2020 /CNW/ - According to a recent Scotiabank survey, Canadians are becoming better savers while keeping their spending down in light of the ongoing complexities surrounding COVID-19. Most Canadians are being cautious with their spending (79%) and have made saving for an emergency a priority since the COVID-19 pandemic started (53%). More than half of Canadians (58%) say they are putting extra money they are not spending while in lockdown into their savings accounts, and more than one-third (38%) are adding to their investments.
Scotiabank polled over 1,500 Canadians to learn more about their saving and spending habits since the pandemic began and found that one in four Canadians (25%) have been able to save more because of reduced spending in other areas of their lives. Canadians who are saving more say they are spending less on: eating out (75%), entertainment (81%), clothing and apparel (58%), and commuting costs (41%). Also, more than a third (37%) who are putting more money aside have made saving a priority since COVID-19.
"The pandemic has prompted many Canadians to reassess their personal finances and short-term priorities, shifting how they manage their money and planning for whatever uncertainties lay ahead," said D'Arcy McDonald, SVP, Deposits, Investments, & Payments at Scotiabank. "Not only are Canadians making savings a priority, but with different spending patterns created by the pandemic, many are seeing their savings grow even faster. This is an important time to speak to your financial advisor to ensure you have the right plan in place that helps you invest and put your money to work."
Canadians who find themselves saving more money are using the extra cash to build up an emergency fund (61%), invest (34%), pay down debt (29%) and save for a big purchase (26%).
This shift in how Canadians are managing their money is also contributing to how prepared they feel to manage the uncertainty caused by the pandemic. Approximately 41% of Canadians reported feeling financially prepared to manage through the pandemic, compared to 35% just 6 months ago.
Holiday Spending During COVID-19:
The strong majority of Canadians (88%) are expecting the holiday season will be very different this year. However, 39% of Canadians love to spend money on the holidays and won't let the pandemic change that, while 43% of Canadians say finding extra money to spend this holiday season will be challenging. More than half (56%) of Canadians said they plan to pull back their holiday spending this year because of other financial priorities, while roughly 30% of Canadians said they plan on spending more than usual on the holidays because of the extra money they were able to save during the pandemic.
Investing in Uncertain Times Virtual Panel on November 24
On November 24, 2020, Scotiabank's top financial experts will answer the most frequently asked questions they've received from Canadians during the COVID-19 pandemic. They will cover everything from the economy, saving, investing, and finding balance during these tough times. Visit Scotiabank.com/investing to learn more and register here for the virtual panel and get their expert advice.
Scotiabank's Top Tips for Savings and Investing:
Scotiabank's Money Readiness also found:
Methodology: The 2020 Scotiabank Money Readiness Poll was conducted by Maru Blue on October 7, 2020. A total of 1,511 surveys were collected from a random sample of panel members across Canada.
The success of our customers is at the heart of our business at Scotiabank. Since the COVID-19 pandemic began, Scotiabank has helped more than 375,000 customers receive loan assistance plans and provided thousands of customers with advice to help them navigate through challenging times. Advice+ is championing our customers' financial goals with a tailored plan, plus the resources and education, and professional support that will help them stay on track. Canadians can visit the new ScotiaAdvice+ Centre or contact a Scotiabank advisor today to discover the power of a simple conversation.
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