Battle of the generations: Who is having the hardest time financially in Canada?
| Distance | The distance value | Overall results |
|---|---|---|
| A | I can see my money working for me. | 55.9% |
| B | The program is still ongoing and in progress. | 31.2% |
| C | I have a goal but I'm not sure how to achieve it. | 10.4% |
| It failed | I don't know where to start. | 2.5% |
Gen Z, however, is not in line with the majority. Although they have financial goals, achieving them is where distance comes in. More than one-third of Gen Z (37.2%) gave themselves a C—”I have a goal but I'm not sure how to achieve it.”
Using registered accounts to invest and save
A registered account can be a great place to hold cash, but it's best to hold investments there. Why? Because growth is tax protected. Registered accounts in Canada include a tax-free savings account (TFSA), registered retirement savings plan (RRSP), registered education savings plan (RESP), first home savings account (FHSA), registered retirement fund (RRIF ), and registered disabilities. savings plan (RDSP).
While 16.4% of those surveyed gave themselves B for using their registered accounts as a savings vehicle, 78.5% gave them A because they invest in their accounts.
Who hasn't opened a registered account yet? In total, 2.5% said they were “failing” on registered accounts, as they have yet to open an account. The majority of respondents were Millennials (5.6%) and Gen Z (14%), compared to Gen X (2%), Boomers (1.9%) and the Silent Generation (0.8%).
How do financially literate Canadians feel?
Most Canadians polled (55.2%)—and a majority of all generations—gave themselves a B for financial literacy, indicating that they feel “good” about their level of knowledge.
Gen Z, interestingly, had great diversity between grades A, B, C and Fail.
- 25.6 percent chose A as “best”
- 37.2% chose B as “good”
- 30.2 percent chose C as “correct”
- 7% chose “failure”
Therefore, it seems that Gen Z is more confident in their knowledge, despite their lack of confidence in paying off debt, as mentioned above.
Canada's financial report card
Canadians feel more confident about money and using financial products, according to a MoneySense survey. There's always room for improvement, but Gen Z's responses show that despite feeling good about what they know, they need some help. And older generations understand that times have changed—financially, of course.
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