Canadians are saving more money now than they did in the past for financial emergencies, but almost one-quarter of them have almost nothing set aside, according to a survey for the Bank of Montreal. Respondents are most worried about emergencies like unexpected medical expenses, job loss, major car repairs or unexpected home repairs.
Those who have saved have an average of $41,694 set aside, up $6,457 from last year. The bank suggests the ideal emergency savings fund should be equal to between three and six months of one’s income.
One-third concerned about finances
Talk of an impending recession (confirmed today) caused 30 per cent of Canadians to feel concerned about their personal financial standing, according to the poll. Four in 10 have started to look for ways to cut spending, 28 per cent are re-examining their finances, 26 per cent want to grow their emergency fund and 20 per cent are delaying major purchases.
The Bank of Montreal is using the survey results to promote a special savings instrument which would award interest of 1.5 per cent if they increase their savings by $200 or more each month.
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