Canadians are facing more barriers to saving money, and are saving less than previous generations, a new study by TD Canada Trust has found.

The survey, which polled 1,000 Canadian adults in late July, found that 19% of those aged 18 to 34 are saving 10% to 25% of their total monthly income, compared to 29% of those aged 55 plus who say they saved that amount when they were the same age.

For young adults, not making enough money is cited as the top barrier to saving, along with debt. In fact, only 28% of 18-to-34 year-olds said they feel their debt is manageable.

Older Canadians feel there were fewer barriers to saving money when they started out. Respondents aged 55 plus said the biggest barriers to saving when they were younger were daily expenses and the cost of living.

Carrie Russell, senior vice-president of core banking and payments at TD Canada Trust, said it is not surprising that Canadians are saving less.

“In an environment where many have seen their incomes reduced and the cost of living continue to rise, finding some extra money left over at the end of the month to save is difficult,” said Russell. “Whatever the barriers, we’ve learned that even though people have the intention of saving money, many are not saving enough and they may not be starting early enough.”

The study also reveals that many Canadians are not prepared for unexpected expenses. Only 54% of 18-to-34 year-olds, 55% of 35-to-54 year-olds and 63% of those 55 plus had savings set aside for an unexpected expense or emergency.

“When the recession hit, a lot of customers came to us for help and advice. One thing that stood out was how few people had something put aside to protect their way of life in an emergency,” said Russell.

Less than half of all respondents stuck to a monthly budget during their formative saving years, and of those, women in all generations polled were more likely than men to stick to a budget. Among 35-to-54 year-olds, 43% of women remember planning and sticking to a monthly budget when they started saving money, compared to only 28% of men.

In terms of motivations for saving, the desire to purchase a home and to travel are top reasons among younger Canadians, while saving for retirement was a more significant motivation for older Canadians.

Despite saving less, younger Canadians are keeping closer tabs on their savings accounts, the study shows. More than half of 18-to-34 year-olds are checking their savings or investment accounts at least once a week, compared to 39% of respondents aged 55 plus.

IE