Biggest drops seen in Ontario, and Manitoba and Saskatchewan
TORONTO, July 14, 2016 /CNW/ - Far fewer Millennial and
Generation X Canadians are confident they'll meet their financial
goals than they were just six months ago, finds the latest
CIBC (TSX: CM) (NYSE: CM) Quarterly Financial Confidence
Poll. After a sharp 12-percentage-point drop for both age
groups, only 72 per cent of Millennials and 66 per
cent of Gen Xers now say they will be able to attain their
financial goals in the next 12 months.
For Baby Boomers, however, financial confidence has edged up
three percentage points, with 82 per cent now confident they
will meet their goals.
"We had a very gloomy start to 2016, with a reeling loonie and a
soft economy and jobs market, and much of that sentiment continues
to weigh on confidence," says Sarah
Widmeyer, Managing Director and Head, Wealth Strategies
Group, CIBC. "Our poll also reveals the stress of everyday life for
Millennials and Gen Xers - going to school, working, paying your
household bills, trying to save for a house, or taking care of your
family. Combined with a string of gloomy economic news no wonder
this cohort is feeling less certain they'll achieve their financial
goals."
Key poll findings include:
- Overall, 73 percent of Canadians say they are confident
they will meet their financial goals over the next 12 months (down
from 80 per cent in December
2015).
- Millennials (18-34 years) were the most confident group back in
December 2015, but confidence has
since fallen significantly from 84 per cent to 72 per
cent.
- Generation X (35-54 years) continues to be the least confident
group, dropping from 78 per cent to 66 per cent.
- But Baby Boomers (55+ years) feel more positive, with their
confidence edging up from 79 per cent to 82 per cent.
- 68 per cent of Ontarians now feel confident, down from
80 per cent six months ago. While oil prices and a sluggish
economy dented how Albertans felt about their finances in the first
three months of the year (an 8 percentage point drop to 64 per cent
in the first quarter), their confidence has since rebounded, now at
69 per cent.
Ms. Widmeyer notes that experience in riding out market and
economic cycles can mean a lot in maintaining confidence that you
will achieve your goals.
"While macro events, like Brexit, can spark fear and gloom in
the markets, these are things beyond our control," she says. "What
you can control is your personal finances and how you manage them.
The key is to set and prioritize realistic short- and long-term
goals, and take concrete steps each month to achieve them. When you
have the right plan, then periodic market noise becomes just that,
noise, that really shouldn't change your financial priorities."
Feelings about personal finances today closely tied to future
outlook
The poll also asked Canadians how they feel about their personal
financial situation today. The findings were similar to their
financial confidence outlook: Only 59 per cent of
Millennials and even fewer (57 per cent) of Gen Xers feel
positive about their finances, compared to 78 per cent of
Baby Boomers, who are feeling the most optimistic.
"When you feel negative about the status of your finances, you
should sit down and talk to someone who can help you assess your
situation, give advice and boost your confidence," says Ms.
Widmeyer. "There's always something that can be done."
Mid-year is a good time to sit down and re-evaluate your
personal financial situation, she adds.
"If you have a plan, take a look to see if it is still realistic
and whether changes in the market require you to make adjustments
to your expectations, timeframe or investment choices," says Ms.
Widmeyer.
Four tips to help boost your financial confidence
- Get a check-up – CIBC's Financial Health Check tool is a
great starting point. It takes only five minutes to complete and
provides basic personal advice based on your goals, budget and
savings ability, as well as an opportunity to meet with an
advisor.
- Write down your goals – Countless studies show that
those who write down their goals are more apt to achieve them
whether they are health, career or financial goals.
- Set realistic goals – You might want to save or
pay down debt as quickly as possible, but if your budget doesn't
support it, modify it. You can still set big goals, but
achieving smaller goals along the way can boost your confidence and
keep you on track.
- Review your goals and track your progress – This is key
to staying on track and gaining a sense of achievement over time.
You can modify your goals if your situation changes.
Five Tips for Financial Fitness
- Live within your means
- Define your wants versus needs
- Pay down highest interest rates first
- Don't make late payments
- Set up account and auto-pay alerts
KEY POLL FINDINGS:
Confidence: Percentage of Canadians who feel confident
about meeting their financial goals over the next 12 months, by
age:
|
December
2015
|
March
2016
|
June
2016
|
Percentage point change
since Dec.
2015
|
All
Canadians
|
80%
|
73%
|
73%
|
-7
pp
|
Millennials
(18-34
years)
|
84%
|
75%
|
72%
|
-12
pp
|
Generation
X
(35-54
years)
|
78%
|
67%
|
66%
|
-12
pp
|
Baby
Boomers (55+
years)
|
79%
|
78%
|
82%
|
+3
pp
|
Confidence: Percentage of Canadians who feel confident
about meeting their financial goals over the next 12 months, by
region:
|
December
2015
|
March
2016
|
June
2016
|
Percentage point change
since Dec.
2015
|
All
Canadians
|
80%
|
73%
|
73%
|
-7
pp
|
British
Columbia
|
82%
|
74%
|
79%
|
-3
pp
|
Alberta
|
72%
|
64%
|
69%
|
-3
pp
|
Manitoba/
Saskatchewan
|
88%
|
75%
|
74%
|
-14
pp
|
Ontario
|
80%
|
69%
|
68%
|
-12
pp
|
Quebec
|
84%
|
83%
|
80%
|
-4
pp
|
Atlantic
Canada
|
69%
|
66%
|
66%
|
-3
pp
|
Personal financial situation: Percentage of Canadians who
feel positive about their personal financial situation, by age:
|
December
2015
|
March
2016
|
June
2016
|
Percentage point change
since Dec.
2015
|
All
Canadians
|
69%
|
67%
|
65%
|
-4
pp
|
Millennials
(18-34
years)
|
69%
|
65%
|
59%
|
-10
pp
|
Generation
X
(35-54
years)
|
65%
|
62%
|
57%
|
-8
pp
|
Baby
Boomers (55+
years)
|
74%
|
74%
|
78%
|
+4
pp
|
Personal financial situation: Percentage of Canadians who
feel positive about their personal financial situation, by
region:
|
December
2015
|
March
2016
|
June
2016
|
Percentage point change
since Dec.
2015
|
All
Canadians
|
69%
|
67%
|
65%
|
-4
pp
|
British
Columbia
|
71%
|
65%
|
65%
|
-6
pp
|
Alberta
|
62%
|
63%
|
59%
|
-3
pp
|
Manitoba/
Saskatchewan
|
78%
|
69%
|
65%
|
-13
pp
|
Ontario
|
68%
|
64%
|
63%
|
-5
pp
|
Quebec
|
71%
|
76%
|
74%
|
+3
pp
|
Atlantic
Canada
|
67%
|
56%
|
55%
|
-12
pp
|
From June 9-10, 2016, an online
survey was conducted among 1,489 randomly selected Canadian adults
who are Angus Reid Forum panelists. The margin of error - which
measures sampling variability - is +/- 2.5 per cent, 19 times out
of 20. The results have been statistically weighted
according to education, age, gender and region (and in Quebec language) Census data to ensure a
sample representative of the entire adult population of
Canada. Discrepancies in or
between totals are due to rounding.
About CIBC
CIBC is a leading Canadian-based global financial institution with
11 million personal banking and business clients. Through our three
major business units - Retail and Business Banking, Wealth
Management and Capital Markets - CIBC offers a full range of
products and services through its comprehensive electronic banking
network, banking centres and offices across Canada with offices in the United States and around the world. You
can find other news releases and information about CIBC in our
Media Centre on our corporate website at www.cibc.com.
SOURCE CIBC