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:
- Determine how much you can save: With COVID-19, this
number may be different than what you think. Start off by
calculating your monthly expenses, including items like rent or
mortgage, utilities, and an updated summary on transportation
costs, groceries, child care, etc. Don't forget to use unexpected
windfalls, like tax refunds or bonuses, to help speed up the
funding process. Contributing whatever you can to your fund, even
$20 a month, will make a big
difference over time.
- Save automatically and pay yourself first: Make it easy
on yourself by scheduling automatic deposits to your emergency
fund. Setting up pre-authorized transactions will allow you to save
without having to think about it.
- Put your money to work: Whether you're saving for
retirement or building a nest egg, the right investment strategy is
essential to growing your money and making your financial goals
possible.
- The value of advice. TFSAs, RRSP, RESPs. There is a lot
you can do. Speaking with an advisor can help you choose which
option is best for you and your goals. Canadians can visit the new
ScotiaAdvice+ Centre or contact a Scotiabank advisor today to
discover the power of a simple conversation.
Scotiabank's Money Readiness also found:
- 58% of Canadians are putting extra money that they're not
spending while in lockdown into their saving accounts (chequing,
high interest savings account etc.) and 38% are putting the extra
money into their investments (RRSP, TFSA, etc.).
- 33% have had to draw money from their savings to pay for
day-to-day expenses during the pandemic.
- 27% of Canadians are saving more money as a result of COVID-19,
while 14% are saving less money. 18% are not able to save any money
at all as a result of COVID-19.
- 41% of Canadians say COVID-19 has had no impact on their
savings behaviour.
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.
Advice+
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.
About Scotiabank
Scotiabank is a leading bank in the Americas. Guided by our
purpose: "for every future", we help our customers, their families
and their communities achieve success through a broad range of
advice, products and services, including personal and commercial
banking, wealth management and private banking, corporate and
investment banking, and capital markets. With a team of over 90,000
employees and assets of approximately $1.2
trillion (as at July 31,
2020), Scotiabank trades on the Toronto Stock Exchange (TSX:
BNS) and New York Stock Exchange (NYSE: BNS). For more information,
please visit our website and follow us on Twitter
@ScotiabankViews.
SOURCE Scotiabank