Key Findings of the 2019 Canadian Financial Capability Survey: Are Canadians Adequately Prepared for Financial Emergencies?

The 2019 Canadian Financial Capability Survey: An Overview

The 2019 Canadian Financial Capability Survey is an extensive study conducted by the Financial Consumer Agency of Canada (FCAC) that aimed to measure the financial knowledge, skills, and behaviours of Canadians. The survey covers various aspects of financial management, including income, debts, savings, investments, retirement planning, financial planning, and emergency funds. The study provides valuable insights into Canadians’ financial preparedness and highlights areas of improvements that need to be addressed.

The Key Findings of the 2019 Canadian Financial Capability Survey

The survey revealed some critical findings that shed light on the state of Canadians’ financial preparedness for emergencies. Here are some of the key takeaways:

1. A Significant Percentage of Canadians Live Paycheck to Paycheck

The survey highlights that about 43% of Canadians live paycheck to paycheck, meaning they have little or no financial cushion to draw upon in the case of an emergency. The study found that many Canadians struggle to make ends meet and have to choose between paying bills and saving for emergencies.

2. Most Canadians Don’t Have an Adequate Emergency Fund

The survey revealed that only 27% of Canadians have an adequate emergency fund to cover three to six months’ worth of living expenses. The majority of Canadians have little or no savings set aside for emergencies, making them vulnerable to unexpected expenses such as a job loss, medical emergency, or other unforeseen circumstances.

3. Canadians Lack Basic Financial Knowledge

The survey indicated that many Canadians lack basic financial knowledge, which can negatively impact their financial decision-making and preparedness. The study found that only 42% of Canadians could answer three out of five financial literacy questions correctly. Moreover, the survey highlights that many Canadians don’t seek professional financial advice, with only 31% of Canadians consulting a financial professional before making a financial decision.

The Importance of Being Financially Prepared for Emergencies

The findings of the 2019 Canadian Financial Capability Survey underscore the importance of being financially prepared for emergencies. Emergencies can happen to anyone at any time, and having an adequate emergency fund can help mitigate the financial impact of unexpected expenses. Moreover, having basic financial knowledge and seeking professional financial advice can help Canadians make informed financial decisions and improve their financial preparedness.

Conclusion

The 2019 Canadian Financial Capability Survey highlights that many Canadians are not adequately prepared for financial emergencies. The survey underscores the importance of having an emergency fund and basic financial knowledge to make informed financial decisions. By being financially prepared, Canadians can better manage unexpected expenses and improve their financial well-being.