New poll highlights Canadians' financial priorities in 2023
Amid mounting global economic volatility and an elevated-rate environment, debt servicing was found to be the top financial goal for Canadians in 2023 (18%), followed by bills payment (17%) and investment growth (14%), according to CIBC’s annual Financial Priorities poll.
Secondary financial goals were increasing savings (25%), reducing borrowing (24%), saving for vacations (21%), and cutting down on discretionary spending (18%).
“The current economic environment has, understandably, prompted Canadians to re-assess their financial priorities for 2023,” said Carissa Lucreziano, vice president of CIBC Financial and Investment Advice.
Respondents reported being most concerned about inflation (65%), rate hikes (30%), and the possibility of recession (24%).
Nearly seven out of 10 Canadians (68%) admitted that the ongoing instability of the financial environment makes planning an arduous task, although 62% also said that they feel financially prepared for unexpected crises and 59% said that their finances are secure enough to withstand a recession.
What is driving the increase in household debt?
The Canadian household debt-to-income ratio went up from 177% in Q3 2021 to 183% during the third quarter of 2022, according to data from Statistics Canada.
Respondents to the CIBC survey said that their main reasons for taking on more debt were the rising costs of living (47%), daily expenses exceeding their monthly income (34%), unexpected financial emergencies (16%), higher borrowing costs (16%), and home repairs (14%).
As many as 25% of Canadians said that they have taken on more debt in the last 12 months compared to previous years, while 55% admitted that they see a need to better handle their financial situations this year.
