Many Cdns. rely on lotto winnings, inheritance for financial plans
You know, throughout the recession and this long, snarled recovery period much of the world’s still in, Canadians have kind of floated above the fray, our global reputation preceding us.
After all, tight banking regulations ensured our economic freefall wasn’t quite as severe as that of others, and, hey, look, they even took one of our top finance minds to be the world’s bank regulator.
Perhaps consumers, too, began to walk with a swagger. With recent news that Canadian household debt growth is at a ten year low, is there any doubting our fiscal responsibility?
Wellllll … hold on a tick. At the risk of a wrist injury from patting ourselves on the back, here’s a sobering stat (or two) sure to crash Canada’s cash conservatism to the ground.
As a point of fact, when you lift the hood on Canadian consumer savings rates, smoke looks like its starting to billow from the engine.
While household debt growth has slowed, household debt remains high. According to Stats Canada’s latest numbers, Canadian household credit market debt still stands at 163 per cent of income, about the level, the Globe and Mail notes, in the U.S. before the housing crash of ’07-’08.
But here’s the doozy, the rotten icing on the overcooked cake.
According to a new study by Credit Canada Debt Solutions and Capital One Canada, about one-third of Canadians admit their financial plans include relying on cash won in a lottery, or handed out in an inheritance.
Yes, 18 per cent of Canadians said they believe winning a lottery will contribute to their future financial picture, while a further ten per cent said they’re relying on an inheritance payment to help out.
“It’s troubling to see so many Canadians putting more trust in the lottery than sound financial planning,” said Laurie Campbell, Credit Canada Debt Solutions CEO, abstaining from adding, “You morons.”
Truly, this is a tough one to swallow, and perhaps it paints a picture of Canadian consumers that undoes the national profile we’ve earned on the global scale.
Seems like we need a distraction. Something to throw the world off the scent. Oh! Here’s one. See, we’re not the dumb ones. Right?