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May 23, 2021

Building a nest egg not a top priority for many Canadians

983477_77408376It seems that stashing cash in a cache isn't a top priority for many Canadians.

Growing up, our grandparents and parents always stressed the importance of building that all-important nest egg to have a little something for a rainy day.

However, that doesn't seem to be the case today.

In fact, a report by the Certified General Accountants Association of Canada (CGA) revealed that over 70 per cent of households do not view wealth accumulation as very important.

And 29 per cent admit they do not have any wealth, and only three in ten Canadians believe that wealth accumulation is important. 

It appears money isn't everything.

The report also found that 42 per cent of households are happy with the wealth they have, yet over half admit they last calculated their household finances a year or more ago, never or they could not recall.

The two top reasons cited for not being able to accumulate wealth are income level and the need to honour other important financial obligations.

Anthony Ariganello, president and CEO of CGA-Canada, says, "While many Canadians appear satisfied with how much wealth they have, they can't necessarily put a dollar value on it.

"They therefore may overlook the need to make adjustments to their savings, borrowing and investing behaviours."

The Canadians who are building wealth (80 per cent) say they may need to dip into part of it within the next few years. The report found that when additional funds become available, Canadians may be more likely to use the funds for consumption rather than wealth accumulation.

I guess it's best not to put all your eggs in one basket.

By Donna Donaldson, MSN Money

Do you think it is important to build a nest egg? What are the barriers, if any, to building wealth in your household?



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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...