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Many Canadians can't handle an unexpected financial hit: study

Last Updated Oct 31, 2018 at 5:32 am PST

(Source: iStock)
Summary

A new study finds about 33 per cent of Canadians surveyed say they wouldn't pass the Financial Stress Test

Study finds 20 per cent of Canadians say they rarely, if ever, pay off their credit card balance at the end of the month

VANCOUVER (NEWS 1130) – Weather you’re rolling in it, or you struggle to rub two dimes together, it’s never fun to deal with a financial emergency.

That would include a surprise vet bill, or maybe something went wrong with your car, and the repairs are a little steep.

It turns out 33 per cent of Canadians, in fact, feel they can’t hack it financially if a major bill is staring them in the face, a new study by the Financial Planning Standard Council has found.

It has also concluded that about 64 per cent of the 1,527 people surveyed don’t have access to some type of employee savings program, which makes socking money away for the future a difficult task as well.

The big number is that one in three Canadians would fail the financial stress test, the survey finds, meaning they don’t think their bank account could withstand a sizeable hit.

Stemming from that slightly, 20 per cent of Canadians say they rarely, if ever, pay off their credit card balance at the end of the month.

About a quarter of people surveyed also say they haven’t taken the time to sit down with a financial planner, largely because they say the task is too confusing.

In British Columbia, about 30 per cent surveyed admit they rarely, if ever, have money set aside for other expenses at the end of each month.