Smarter money management is a key focus for young Canadians
As the youngest cohort of Canadian adults, Gen Zs are among the most impacted by the current cost of living and want to ensure they are being smart with their money management.
Having been born into a world of smartphones the generation is embracing technology to keep on top of their spending, according to a new study from Interac, published today (August 19).
The survey found that the arrival of back to school season has prompted a strong desire to control potential overspending with 54% of respondents seeing a need to develop new habits to stay in control over their finances with 56% planning to introduce new habits by this September.
With expenses set to rise in the fall, more than six in ten Canadian Gen Zs say they want to be mindful when spending, with 79% saying the cost of living is too high and 59% acknowledging that they need to be smarter with money.
Interac says it has seen a 27% year-over-year increase in its debit mobile contactless payments solution in the first half of 2024, fuelled by Gen Zs with 63% of mobile wallet users from this generation having loaded their Interac Debit card on their phone.
Gen Z’s use of mobile wallets (69%) outpaces Millennials (60%), Gen X (44%), Boomers (27%) and the Silent Generation (10%) and the use of mobile wallet transactions can result in costly purchasing if credit cards are the default option.
“Choosing your default payment method may feel like a small step, but it can play a big role in shaping Canadians’ ongoing spending habits,” said Glenn Wolff, group head and chief client officer at Interac. “When consumers tap to pay with their phones, the decision to select a card from the digital wallet is easy to miss. Canadians could end up unintentionally using a default payment method that prompts them to take on more debt. This differs from traditional physical wallets where the consumer had to select the card they wanted to use each time.”
