The financial crisis and subsequent economic downturn appears to be shifting the financial priorities of young Canadians, according to a Scotiabank survey released Tuesday.
The survey found that nearly half of young Canadians between the ages of 18 to 34 save money to have a financial safety net in place, compared with roughly 40% of Canadians over 35.
Younger Canadians have also become the most prudent in financing their major purchases with 38% saying they would prefer to save up and pay for the whole thing compared with about 28% of older Canadians.
Broadcaster Valerie Pringle has been on a two-week cross-Canada tour as Scotiabank’s saving ambassador to encourage Canadians to improve their financial habits. She said in an interview Tuesday in Vancouver before flying to Calgary that, young Vancouverites are among the most concerned in Canada about the cost of housing in the region.
“We talked a lot about that in Vancouver. People wondered if they could ever afford even a one-bedroom condo.”
Young people were also concerned about the increasing costs for education and the challenges associated with finding a good job in the region. For some it would be harder to save because they are paying down student loans or simply making ends meet.
But, younger Canadians seem to be aware of the need to save, which is a significant shift in thinking. “There’s often this disconnect between intent and action, but it’s interesting that so many young people are thinking about saving for a safety net. If saving for their financial security is what’s motivating them, those feelings are powerful.”