Canada's youth have spending power
Young money.
According to a new report from BMO Economics, Canada's youth will have more spending power than their parents over their lifetime.
Years ago, it seemed the younger you were, the worse off you were.
But now it seems the kids will be all right.
And, although youth today are starting out with a lower income, they have the potential to achieve a greater increase in spending power over their lifetime with the right education, by gaining valuable work experience and by eventually moving into higher paying careers.
The report also states that an upturn in compensation growth, which was driven in part by the resource and housing booms, has generated gains in spending power since the mid-1990s.
"This upward trend in income should continue, albeit at a slower pace in the near term, as the economy returns to full employment next year," adds Guatieri.
And increased spending power means higher demand for many businesses, particularly in the retail and service sectors.
The report notes, that one-in-four Canadian business owners are expecting to increase their workforce in 2013, with large companies more likely than small companies planning to hire more employees.
Perhaps they are getting prepared for the influx of new business with the young money.
By Donna Donaldson, MSN Money
Do you think today's youth will be better off financially in the future? Why or why not?
Posted by: R | May 17, 2021 3:33:20 AM
This is bad analysis at best and pure propaganda at worst.
No mention of the ridiculous cost of housing, competition with temporary foreign workers? How about the cost of oil? Food? How about health benefits which employers continue to claw back on?
Incomes compared to what? how fast we can keep our currency in competition with the devaluing currencies worldwide? Saving ability with what interest rate?
The youth are being saddled with environmental debt, their parent's debts, their student debts, they'll be lucky if they even get housing debt.
Nice try, BMO. Having trouble keeping confidence amongst an angry youth?
Posted by: san | May 17, 2021 8:54:08 AM
I do not know where they get their stats...In fact the younger youth tend to spend much of what they make...Sure there are high paying jobs for some, but look a what they have to pay back on their student loans. Many parents are carrying their debt load, just coming out of University or College and now having to start paying it back...BMO should look at the debt load many families are carrying.
The comment posted the youth will have more spending power than their parents, but what will they actually put away for their retirement. Many parents years ago lived a simple life making due with what they had. Today the youth go out and buy whatever they see.
Look at the cost to live today. Look at a long term care centre or retirement home the cost to live.
The youth better save some money, because when the parents are gone there will not be to much left over at the end of the day.
I thnk BMO basis their stats on the rich sector families, not the middle or lower income side.
BMO needs to go in and look at how many are carrying a debt load on a mortgage or credit cards into their 60s and these are people trying to survive.
If we are all in this great shape then why not put up the interest rates? Why any slight increase now
many would not be able to make their payments.
All the banks bring out is stats look at the real figures. These younger ones with their spending power down the road will not be off any better than their parents. That is the probolem SPENDING no saving.
Posted by: Doug Price | May 18, 2021 3:14:22 AM
What does BMO see that I am missing? Where my generation (war babies) was brought up to be frugal and save for the future, I see a current generation with little or no fiscal discipline. Cost of living is high today and young people want it all, right now. They may wind up with many possessions and incredible debt.