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New study highlights financial challenges, strengths during COVID-19

Overall, Canadians are feeling confident about their knowledge and skills regarding their personal finances

November 10, 2020  by CM Staff

PHOTO: iStock

TORONTO — A new study from the Chartered Professional Accountants of Canada (CPA Canada) shows great variations in how Canadians are coping and even succeeding during this unprecedented time.

Overall, Canadians are feeling confident about their knowledge and skills regarding their personal finances. In total, 78% of the survey respondents believe they can stick to a budget and 81% feel they can successfully manage their debts.

“There’s no doubt the COVID-19 pandemic has increased financial difficulties and concerns for many Canadians,” said Doretta Thompson, CPA Canada’s financial literacy leader, in a prepared statement. “Providing financial literacy information is essential in these unsettled times as it can assist individuals and families in making smart decisions to successfully manage their financial wellbeing.”

The study found that in the past five years, almost half (49%) of the respondents have modified their savings strategy. The research also shows that a significant number of those surveyed are serious about their savings planning, with 63% holding a savings account, 60% investing into a Tax Free Savings Account (TFSA), and 53% contributing to a Registered Retirement Savings Plan or Retirement Savings Plan (RRSP/RSP).

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