More than half of Canadians are having trouble meeting their savings goals, according to a recent survey by Royal Bank of Canada.
In the RBC Savings Poll, which surveyed more than 1,100 Canadians in August, 38% said that they are unable to save. Many respondents attributed this to having nothing left over after paying bills, or because of impulse spending.
More than half of the respondents said they find it difficult to be disciplined in their savings habits, and 51% said they find it daunting to set up a ‘pay yourself first’ program.
“Our clients tell us that one of the main challenges to saving is paying yourself first — being able to put aside money before it gets spent,” said Maria Contreras, product manager, savings accounts at RBC. “We advise our clients to start slowly by setting aside small amounts. Starting by setting up a separate, dedicated savings account and an automatic saving program with a small amount each week from your paycheque can go a long way in helping you reach your savings goals.”
More than 40% of the respondents reported challenges determining how much they could save each month, and setting up a budget.
Only 12% of respondents have managed to increase their savings in recent years. More than a quarter have reduced the amount they are saving, and 19% said they have stopped saving altogether over the past two years.
One-third of those polled said they diligently save by making regular contributions to a savings account, while a slightly smaller proportion, at 29%, only save from time to time.
The most common reasons cited for saving money are to create an emergency fund or to save for a vacation.
But priorities vary by age group. Young adults aged 18 to 24 are more inclined to save for travel, a home purchase or renovation or a car. Those 35 and older said they’re more inclined to save for “other” goals, such as saving for retirement or a child’s education.
IE