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Debt Keeps Canadians From Saving

60% of Canadians say their current level of debt does not allow them to save as much as they would like, with 31% of Canadians unable to save any money at all, says a study by a group of Canadian credit unions. The study ‒ by Credit Union Atlantic in Nova Scotia, Innovation in Saskatchewan, and Coast Capital, Prospera, and Sunshine Coast in British Columbia ‒ also found Canadians believe financial institutions can help Canadians and their children adopt better financial management habits by providing new and innovative banking products that focus on people, not profits for the bank. "In the last 20 years, the personal savings rate in Canada has plummeted while household debt has grown dramatically," says Marie Mullally, president and chief executive officer of Credit Union Atlantic. "More needs to be done to develop innovative options to help Canadians and their families develop healthy financial habits that will allow them and our economy to thrive.” The survey found that while more than 68% of Canadians believe the income earners in their household exhibit good savings habits, this doesn't necessarily mean that they can find ways to save each month. In fact, half of Canadians are unable to put money into a savings account each month and the average Canadian household owes $1.63 for every dollar in disposable income earned.

Courtesy of Benefits and Pensions Monitor website News Alerts 

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