As the U.S. government grapples with its balance sheet, a new survey from BMO Bank of Montreal indicates that Canadians aren’t prepared for a crisis in their own finances.
The survey found that more than 40% of Canadians are either not prepared or not sure are able to handle their financial obligations in the event of an emergency.
The survey also found that 26% have less than three months worth of emergency savings and only three in 10 have enough savings set aside for one year or more.
“Learning to put aside savings for a rainy day is important to so that if a significant problem arises you are able to handle your finances without taking on more debt in the process,” Lynne Kilpatrick, senior vice-president for BMO, said in a press release.
“A general rule of thumb is to have an emergency fund set aside that is equal to three to six months of your income to use for unexpected household expenses.”
The survey found that the two main barriers preventing Canadians from saving were: everyday expenses (41%) and debt, including credit card and mortgage debt (47%).
A BMO spokesperson wasn’t available for comment by press deadline.
Jenny Wagler
Twitter: JennyWagler_BIV