This text is part of the special section Personal Finances
Recent surveys have highlighted growing financial concerns, both for individuals and for the professionals who manage their portfolios. The unveiling of these results comes in a context of economic insecurity marked by a rise in the cost of living and interest rates.
The Equifax probe made public at the end of last year brought to light the concerns of Quebecers and Canadians for whom monthly bills and debt, among other things, represent an increasingly heavy burden. In fact, only half of respondents (50%) said they view their financial future with optimism, a proportion that rose to 61% the previous year.
More than half of respondents (52%) worry about not being able to pay their bills at the end of the month. This concern is all the more acute among people over 65 who answered in the affirmative in a proportion of 73%, compared to 40% among young people aged 18 to 34.
According to the data obtained by the Canadian agency of credit evaluation, Quebec would be the province where job security would concern the most respondents (49%). Conversely, Alberta, with 27%, is the least concerned about this issue. Concerning the repayment of debts, the results follow the same trend, while the question would concern 46% of Quebecers against only 29% of Albertans.
The use of credit cards would be on the rise, even “at historic peaks” according to Equifax. Data collected by the agency indicates that this form of payment has increased over the past six quarters. “The average credit card balance held by Canadians hit a record high of $2,121 at the end of September. The average Canadian consumer debt, excluding their mortgage, would be $21,188, a high since the first quarter of 2020.
The professor of finance at Montmorency Youcef Ghellache, founder of the Educfinance site and creator of the Facebook group Money never sleeps, is not surprised by the results of the survey, given the current economic context. Especially since financial stress is a recurring theme for many people. “It’s the sum of a lack of financial education, which leads people to make bad decisions, and the economic context, marked by inflation, which puts additional pressure on consumers’ wallets. The expert believes people need to take action by taking control of their finances, budgeting and eliminating some discretionary spending. “There is a way to review certain budget items without cutting into what is essential, such as groceries or housing. »
Professionals also worried about rising interest rates
A majority of Canadian investment dealers and portfolio managers also express concern about “the stability of the Canadian financial system”, according to the first annual Systemic Risk Survey conducted in the fall of 2022 by the Canadian Securities Administrators (CSA). ), of which the Financial Markets Authority (AMF) is a member. “Over 60% of respondents said they were ‘slightly concerned’ to ‘very concerned’,” the survey results read.
Topics such as household debt, the real estate market, geopolitical risks and cyber risks are sources of concern for the 626 professional respondents who took part in the survey between October and November 2022. interest rate hikes would be the top risk to the stability of the Canadian financial system, while 67% of respondents consider this to be a very high (20%) or high (47%) risk. Only 28% see rising interest rates as a moderate risk. Household indebtedness ranks just second among the risks considered to be of concern for the stability of the financial system, while 66% of respondents believe that it represents a very high (22%) or high (44%) risk.
“The survey results reflect changes in the economic context over the past year,” notes Philippe Bergevin, senior economist at the Autorité des marchés financiers and chairman of the Systemic Risks Committee of the Canadian Securities Administrators. However, he recalls that the levels of concern remain relatively low, with a majority of respondents saying they are “slightly concerned” about the stability of the financial system.
“The Canadian and Quebec financial system is very resilient and well regulated, and it has demonstrated in the past its great capacity to absorb such economic and financial shocks,” he specified.
This special content was produced by the Special Publications team of the Duty, pertaining to marketing. The drafting of Duty did not take part.