When asked about their personal finances as part of Financial Literacy Month, 763 young Canadian adults in this age group answered the survey questions in June 2021. Of these, 53% of respondents say the pandemic has shaken their financial security, a rate that climbs to 73% for those whose situation is less stable.
Despite these difficulties, 88% of respondents say they are optimistic about their future, and express the intention to save.
A generation more strongly affected
“We are living in a time of great change, and in the context of the pandemic, no generation has escaped the consequences, but Generation Z has been particularly affected, in particular because it is over-represented in the service sector, explains Mathieu. Labrèche, director, media strategy, ABC. This crisis and the economic recovery we are currently experiencing are not like the previous ones. We are talking about what economists call a K recovery, as different sectors of the economy recover at unequal speeds. ”
The term “K-recovery” refers to the fact that some sectors move up the slope quickly, while others lag behind, which, when illustrated by a graph, results in a K-shape, with an ascending branch and the other descending.
Gen Z is overrepresented in the lower end of K, which is why we looked at it in this survey.
Mathieu Labrèche, director, media strategy, ABC
Young people and savings
The poll finds that 77% of respondents say they set aside at least 1% of their income, with an overall average of 9% of income spent on savings, and 68% have what the ABC considers a “mentality of savings”. ‘saving “. This savings is devoted, in the majority of cases, to the establishment of an emergency fund, and aims for financial autonomy, the tax-free savings account (TFSA) being the most important savings instrument. popular – the first choice of 47% of respondents.
Optimism and good savings intentions: the survey therefore shows that despite the hard impact of COVID-19, Generation Z is resilient and preparing for its financial future.
“According to figures from April 2021, Generation Z youth accounted for more than half of national job losses since the start of the pandemic, and two-thirds of survey respondents received government benefits at some point. or another, adds Mathieu Labrèche. The economic scars will be visible among this group for some time to come. We wondered how these impacts would influence them, but what surprised us is that despite these setbacks, Generation Z is showing resilience by leveraging its natural characteristics, namely perseverance, adaptability. and motivation. ”