Scotiabank survey shows that a return to pre-pandemic spending behaviour is not likely in the months ahead
Canadians spending habits in the last 18 months has been shaped by a reduced ability for normal behaviour and concern about personal finances.
But even as the economy rebounds, most people are taking a cautious approach to spending according to a new survey from Scotiabank.
Almost two thirds of respondents said they do not plan to return to their pre-pandemic spending habits, and more than half are planning to cut back on their spending in the months ahead.
The cost of living and how that affects their finances is playing on the minds of most Canadians (81%) and among the 42% who say they are worried about their personal finances, 84% say the anxiety is the same or higher than at the start of the pandemic.
More than half of respondents said that, with greater opportunities to spend as life moves closer to normal, they expect their ability to save will decrease.
"Earlier this year we saw Canadians curb their spending, keep a closer watch on their finances, and refine some of their money habits because of the pandemic. Six months later, now with fewer restrictions and the economy beginning to reopen, Canadians are keen on keeping up with the positive habits they developed," said D'Arcy McDonald, Senior Vice President of Day-to-Day Banking at Scotiabank. "The Scotiabank Money Habits survey revealed that even with good habits, Canadians are still anxious about the future of their finances."
Younger Canadians most anxious
Anxiety about personal finances is most prevalent among those aged 18-34 with more than half of this cohort concerned compared to less than one third of those aged 55+.
Across all age groups, respondents in the Greater Toronto Area (50%) are more anxious than those in Vancouver (40%) and Montreal (33%).
Among those feeling anxious towards their finances, residents of Alberta (39%), Ontario (40%), and the Atlantic provinces (39%) are significantly more anxious than residents of Quebec (24%).
