The recession has hit all Canadians hard. But apparently the nation's younger generation is feeling it the worst. While unemployment has remained a major concern, especially among students who were looking for work before returning to the classroom, it seems as if many young people are still finding it difficult to save their money.
As Brenda Bouw of The Canadian Press reports today, “young Canadians are saving less than their parents and grandparents did at the same age, with young men being the worst at sticking to a budget, according to the results of a new survey.”
The survey, which was conducted by TD Canada Trust indicates that 80 per cent of Canadians found that saving money was too difficult and that those aged between 18 and 34 were more concerned about saving money to buy a house rather than for retirement.
The main culprit, as reported by the majority of young adults who participated in the survey, was the inability to make enough money for all of their required expenses. As compared to 29 per cent of people aged 55 and over who said that they saved between 10 and 25 per cent of their total monthly income when they were younger, only 19 per cent of those aged 18 to 34 claim that they are able to achieve this same goal.
Debt was also accused of being a major hindrance for young people to save more of their money. Perhaps surprising to some, 28 per cent of male respondents regarded debt as a major concern while only 18 per cent of women saw debt as a problem. According to the survey, women are better at sticking to a budget.
According to TD's senior vice-president Carrie Russell, saving money is not a talent that comes naturally to most. “It has to be practised…and the earlier you start the better off you will be.”
To many, women are often regarded as big spenders. Russell reports, however, that they are better at budgeting because of the practice they get at home dealing with family finances. “They often deal with that tradeoff on what to spend money on, and what not. Its a daily decision,” she says.
Regardless if you are a man or woman, it is clearly important to find ways to save as much of your income as possible. Especially during these tough economic times that is fraught with decreasing job opportunities, some of us need all the money we can get.