A survey released by Edward Jones on Tuesday says 77 per cent of Gen Xers (40-54) have financial concerns while only 47 per cent of Boomers (55-75) state they do not have any financial worries.
While Millennials (25-39) and Boomers (55-75) are more likely to spend their money on experiences such as dinners, concerts, and vacations (58 per cent and 57 per cent respectively), Gen Z (18-24) were most likely to spend their savings on acquiring new things like clothing and electronics, compared to older generations, said the survey.
“While notionally we understand that different generations will have different financial priorities, this study shows us more than how Canadians at different life stages spend and save – it sheds a light on how Canadians feel about their money and what fiscal concerns they have,” said David Gunn, Country Leader, Edward Jones Canada, in a news release.
“As the outlook towards managing finances changes from generation to generation, so does our approach when it comes to understating the individual needs of Canadian investors and in how we support them in achieving their goals – both personal and financial as they are intrinsically linked.”
The study found that 58 per cent of Canadians consider themselves savers, while 37 per cent self-identify as spenders. Boomers (55-75) were most likely to identify as savers (62 per cent), while Millennials (25-39) were more likely to identify as spenders (42 per cent).
“When it comes to paying down debt, regardless of age, Canadians are more alike than they are different. While spenders were considerably more likely to prioritize paying down debt (45 per cent) compared to savers (26 per cent). Gen Z (18-24), Millennials (25-39), and Gen X (40-54) each cited paying down debt as their single most important short-term financial priority at 37 per cent, 40 per cent, and 37 per cent respectively. In fact, 49 per cent of respondents in these generational cohorts noted they would prioritize paying down debt if they received a $10,000 windfall,” said the report.
“Other than paying down debt, the study shows a generational divide in how Canadians are diverting their income. The study also uncovered how Canadians are investing their money. While 65 per cent of spenders invest their money in a TFSA, RRSP, real estate or other investment vehicle, 33 per cent cite that they don’t invest at all. Savers are more likely to take advantage of investment products, with nearly 80 per cent currently investing their money in one of the investment vehicles mentioned.
“Canadians may be waiting too long to begin saving for their retirement. According to the study, only 31.3 per cent of Canadians aged 18-34 invest in an RRSP. That number jumps dramatically to 48 per cent for those aged 35-44 and even more to 59 per cent for those aged 45-54. It would appear younger Canadians prefer investing their money in a TFSA, as 43 per cent of those aged 18-34 are investing in a TFSA.”
Mario Toneguzzi is a business reporter in Calgary.
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