Inflation and the cost of living was again
seen as the biggest financial challenge for Canadians, but this was
down 9 per cent from last year's survey
TORONTO, Jan. 15,
2025 /CNW/ - After another challenging financial
year, a new survey from TD Bank Group has found 49 per cent of
Canadians surveyed still foresee inflation/cost of living as their
biggest financial challenge this year, although this is down 9 per
cent from last year.
Canadians appear to be feeling somewhat more financially
optimistic as they head into the new year, with 24 per cent also
stating they are feeling more confident about their finances in
2025, up 4 per cent from last year.
"As 2024 came to a close with a fifth consecutive interest rate
cut from the Bank of Canada, Canadians have responded with
increased optimism," said Emily
Ross, VP, Everyday Advice Journey at TD. "Although the cost
of living is still clearly a concern for many Canadians and again
tops their list of financial challenges for 2025, the survey
results indicate that things are moving in the right direction, and
Canadians are starting to feel more positive about achieving their
financial goals."
Spending and saving decisions
The TD survey uncovered Canadians' financial priorities in 2025,
with 56 per cent of those surveyed indicating a main priority was
their day-to-day expenses, down 3% from last year, saving and
investing for the future (47 per cent) and paying down debt (30 per
cent). Interestingly, Millennial Canadians were most likely to
indicate paying down debt as a priority (38 per cent), compared to
only 21 per cent of Boomers.
When it came to Canadians' plans for spending, the survey
uncovered additional insights:
- Over half (51 per cent) indicated their intention to cut back
on spending, overall, down 4% from last year.
- Among those not planning to, 42 per cent say it's because they
have already cut back as much as they can.
- Gen Z and Millennials (49 per cent each) are more likely to say
they have cut back as much as they can, compared to Boomers (35 per
cent).
While some will avoid cutting back further out of necessity, 12
per cent of Canadians surveyed indicated they won't be cutting back
simply because they don't want to. In contrast, among those who
will cut back, 63 per cent plan to do so by making fewer retail
purchases of items like clothing and electronics, 56 per cent plan
to eat out or order food less often, 52 per cent say they will shop
around to save more on purchases, and 41 per cent say they will
spend less on entertainment like concerts and sporting events.
Planning for financial growth
Although the survey revealed Canadians' 2025 financial goals, it
also found that 61 per cent do not have a financial plan in place
for 2025. In addition, 63 per cent of Canadians surveyed do not
currently work with a qualified financial professional and 70 per
cent don't use budgeting tools like spreadsheets or mobile apps to
help with their finances.
Canadians' financial ambitions were also measured in the form of
resolutions, and 61 per cent noted they had a financial New Year's
resolution in mind:
- 18 per cent said it was to build up their savings as much as
they are able to;
- 15 per cent said it was to pay off their credit card or pay
down debt;
- 13 per cent said it was to cut back on spending.
"With a significant portion of Canadians looking to save and
invest for the future, manage their daily expenses, and pay down
debt, establishing a financial plan and seeking professional
guidance can make a meaningful difference," added Ross. "Our survey
found that those who work with a qualified financial professional
are 50 per cent more likely to feel positive about their 2025
finances than those who do not work with one, highlighting the
importance of expert advice."
Taking the right financial steps
As Canadians look to chart a path forward in 2025 that
prioritizes their unique financial objectives, TD offers tools and
resources to help customers establish financial goals, set
personalized financial plans, and track their progress as they work
toward achieving them.
- TD Personal Bankers are available across the country to
offer financial advice and help customers with decisions around
money matters, personal finances, and investments to help achieve
their unique financial goals.
- Using TD Goal Builder, a Personal Banker can provide
customized investment advice to help customers work toward their
financial goals, whether they're saving for retirement, a child's
education, a home, or another major purchase.
- Take control of your savings and spending with the TD MySpend,
the tool that gives you financial control – and confidence – right
at your fingertips. Track your daily and monthly cash flow, create
a wish list of savings goals and get insights to help you make
these goals happen.
- The TD Ready Advice Hub has information and articles
available on a variety of financial topics and investing.
About TD Bank Group
The Toronto-Dominion Bank and its
subsidiaries are collectively known as TD Bank Group ("TD" or the
"Bank"). TD is the sixth largest bank in North America by assets and serves over 27.9
million customers in four key businesses operating in a number of
locations in financial centres around the globe: Canadian Personal
and Commercial Banking, including TD Canada Trust and TD Auto
Finance Canada; U.S. Retail, including TD Bank, America's Most
Convenient Bank®, TD Auto Finance U.S., TD Wealth (U.S.), and an
investment in The Charles Schwab Corporation; Wealth Management and
Insurance, including TD Wealth (Canada), TD Direct Investing, and
TD Insurance; and Wholesale Banking, including TD Securities and TD
Cowen. TD also ranks among the world's leading online financial
services firms, with more than 17 million active online and mobile
customers. TD had $2.06 trillion in
assets on October 31, 2024. The
Toronto-Dominion Bank trades under the symbol "TD" on the
Toronto and New York Stock
Exchanges.
About the survey
This Maru Public Opinion survey
conducted on behalf of TD Bank was undertaken by the sample and
data collection experts at Maru/Blue. 1,143 randomly selected
Canadians adults age 25 and older who are Maru Voice Canada online panelists were
surveyed from November 4th
to November 7th 2024. The
results of this study have been weighted by education, age, gender,
and region (and in Quebec,
language) to match the population, according to Census data. This
is to ensure the sample is representative of the entire adult
population of Canada. For comparison purposes, a probability sample
of this size has an estimated margin of error (which measures
sampling variability) of +/- 2.9%, 19 times out of 20.
Discrepancies in or between totals when compared to the data tables
are due to rounding.
SOURCE TD Bank Group
