Oct 29, 2019
National survey reveals which Canadians are most/least financially healthy
Today, TD released the TD Financial Health Index, a national survey measuring the financial well-being of the Canadians surveyed in relation to how they manage their personal finances. The full report can be found here.
Today, TD released the TD Financial Health Index, measuring the overall financial health of more than 10,000 Canadian respondents from across the country. TD worked with Ipsos to deliver the survey which provides insight into the complex state of Canadians' financial health based on how they spend, save, borrow and plan. The report results are broken down by region and across sociodemographics.
The report reveals that although 27% (just over a quarter) of Canadians surveyed are financially healthy, 39% (4 in 10) are struggling with some (or in some cases, all) aspects of their finances. The report also found a link between financial health and an individual's physical and mental health, as higher levels of financial stress, worry over debt, and lack of confidence in one's financial future is highest among groups who also score lower in financial health.
Key report findings include:
- Quebec is the financially healthiest province (with an overall score of 67.1 out of 100 points*), while Alberta comes in as the least healthy (with an overall score of 61.5 out of 100 points).
- On average, women have lower financial health than men. Women are less likely than men to feel confident in their ability to meet their long-term savings goals (41% vs. 49%), are less likely than men to have a high personal income (22% of men vs. 18% of women make $100,000+ a year), and are more likely than men to be employed part-time (11% vs. 8%).
- Individuals who identify as LGBTQ2+ are on average more likely to be financially vulnerable (20%) or financially coping low (30%) than those who do not identify as LGBTQ2+. In addition, Cisgender men (men whose gender identity matches the sex that they were assigned at birth) fare the best in terms of financial health (66 out of 100 points), whereas transgender women fare the worst (52.9 out of 100 points).
- Those who identify as a person with a disability have lower financial health than those who do not, and those with developmental disabilities and memory problems are affected the most. People with disabilities are also more likely to live pay-cheque to pay-cheque or miss paying bills on time.
- The financially vulnerable (those with a financial health score of 0 – 39 out of 100 points) are more likely to manage their finances themselves or not consult any resources to learn about financial products and services, whereas the financially healthy (those with a score of 80 – 100 out of 100 points) are more likely to make use of financial advisors, online resources, and info sessions.
- Many Canadians surveyed are not confident that they are on track to meet their long-term financial goals, and 62% of them don't know where or who to turn to for financial advice, exacerbating their lack of confidence in one's financial health.
"While earning a high income or having no debt can make us feel more financially secure, these factors alone are not an accurate representation of financial health," said Rina DeGrazia, VP Financial Education at TD. "The insights shared in this report are important in helping us develop meaningful tools and programs that can have a tangible impact on the lives of our customers, regardless of their current situation or needs."
Commitment to Financial Education
TD provides advice, tools and programs helping customers enhance their financial know-how and increase their financial confidence. These include funding a wide-range of educational initiatives that work closely with individuals and communities to help raise financial literacy levels across North America through the TD global corporate citizenship platform, The Ready Commitment.
• Spending: spend less than income, pay bills on time
• Saving: have sufficient liquid savings, have sufficient long-term savings
• Borrowing: have manageable debt, have a prime credit score
• Planning: have appropriate insurance, plan ahead for expenses
Respondents were assessed on the criteria above and given an overall financial health score from 0-100.