Stewart & Kett in the Media

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Canadians raiding their savings to splurge, if they save at all: survey

Mar 3, 2015 Media Yahoo Finance

Andrew Seale, Yahoo Finance

Canadian’s fake-it-‘til-you-make-it financial approach doesn’t seem to be working out.

While 59 per cent of Canadians say they are dedicated to their savings plan, closer scrutiny shows otherwise with a third of Canadians regularly biting into their long-term savings for trips, cars or interior decorations, according to a survey by Tangerine bank.

“For most of us, money is a limited resource (but) despite that, many don’t look at their finances strategically – they spend in the moment,” says Cynthia Kett, a chartered professional accountant and financial planner at Stewart and Kett. “They should be asking themselves, ‘How shall I prioritize spending of my scarce dollars?’”

Kett sees it as a sort of dissociation between long-term goals and the day-to-day reality, which can be headache inducing.

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