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December 20, 2021

Canadians to save more in 2012: report

At this point after the recession, almost two-and-a-half years now, you’d think Canadian consumers would begin to slip.

Stock-photo-17554985-piggy-bankAfter being slammed by the downturn, said by many to have been the result of personal and Wall Street misspending, we naturally changed in the years after, tightening our belts and tightening our purse strings.

Yet that’s all fine and good for appearance’s sake. By now, at the end of 2011, a time when credit card use is climbing back up, we’d surely regress gradually to the mean, right? Certainly, we would return to spending like Venetian tourists, return to succumbing to impulse …

… but, wait, not only have we not slumped in our fiscal responsibility, perhaps we’re improving still.

Remarkably, a new TD Canada Trust poll indicates that Canadians will save more in 2012 than they did even in 2011.

*Bing: How much will you be able to put into your TFSA next year?

According to the bank survey, about 53 per cent of Canucks put away at least 10 per cent of each paycheque in 2011.

Next year, that number is expected to swell to 60 per cent.

Though the poll was conducted in late October, it’s interesting timing to release such results, when most Canadian Visa cards, to paraphrase a lousy, common joke, are “getting more action than they are” these holidays.

The cynic could argue that Canadians will only plan to save more in 2012 because that’s the first post-recession year they can afford to stash a healthier amount in line with their normal prudence.

But we’re seeing plenty of look-ahead saving initiatives, like preparing for April’s tax return (hint: make sure those charitable donations are made and TFSA contribution room used before Dec. 31), for the New Year already, suggesting 2012 may well Canada's most penny-pinching year in a while.

How will you change your savings habits next year?

By Jason Buckland, MSN Money



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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...