Report shows:
- Earning power doesn't automatically lead to better financial
health
- Canadians are reluctant to seek advice or even talk about
money
- Link between financial health and physical and mental
well-being
MONTREAL, Oct. 29, 2019 /CNW/ - Today, TD Bank Group
unveiled the TD Financial Health Index, a national benchmarking
survey providing a portrait of Canadians' financial well-being and
a holistic look at how Canadians are managing their personal
finances.
The study reveals that while just over a quarter of Canadians
surveyed are "financially healthy," 4 in 10 Canadians are
struggling with some or all aspects of their finances. Findings
from the survey reinforced the need to significantly enhance
financial education to arm Canadians with the knowledge and actions
they need to overcome their current challenges and thrive in the
future.
"Most Canadians and Quebecers are still unsure about what to do,
where to turn and even what questions to ask when it comes to
seeking financial advice and information," said Sylvie Demers, Chair, Quebec Market, TD Bank
Group. "Insights from the TD Financial Health Index into the
financial well-being of Canadians will help us create better tools,
programs and advice for the many Canadians who continue to struggle
with a lack of financial confidence."
Working with Ipsos and based on responses from more than 10,000
Canadians, the TD Financial Health Index provides key insights into
the complex state of Canadians' financial health according to how
individuals spend, save, borrow and plan.
Key Findings:
- Individual and household financial behaviours documented in the
report depict a gap in both financial health and literacy.
- Income alone is not the sole driver of financial health and
traditional definitions of poverty do not provide an accurate
picture of the current financial state of Canadian households. An
individual can be "financially vulnerable" despite having a higher
income and low debt, as the two do not necessarily equate to having
good financial health.
- Many Canadians are not confident that they are on track to meet
their long-term financial goals, and 62 per cent don't know where
or who to turn to for financial advice, exacerbating the lack of
confidence in one's financial health.
- There appears to be a link between financial health and one's
physical and mental health. Additionally, those who are
"financially vulnerable" score lower on mental health
measures.
- The financially vulnerable are more likely to manage their
finances themselves or not consult any resources to learn about
financial products and services, whereas the financially healthy
are more likely to make use of financial advisors, online
resources, and info sessions.
Sociodemographic Trends
The TD Financial Health Index was designed to help shed light on
the financial conditions of Canadians particularly as they relate
to specific sub-groups. Key findings from those surveyed
include:
- Those who identify as LGBTQ2+ are on average, more likely to be
financially vulnerable (20 per cent) or "financially coping low"
(30 per cent). Within the LGBTQ2+ community, transgender women have
the lowest financial health.
- On average, women have lower reported financial health than
men, particularly amongst younger cohorts. Women are less likely
than men to feel confident in their ability to meet their long-term
savings goals (41 per cent vs. 49 per cent), are less likely than
men to have a high annual income (22 per cent of men vs. 18 per
cent of women make $100,000+ a year), and are more likely than men
to be employed part-time (11 per cent vs. 8 per cent). Furthermore,
3 in 10 women underestimate their financial situation.
- Those who identify as a person with a disability have lower
financial health than those who do not, and those with
developmental disabilities and memory problems are affected the
most. People with disabilities are more likely to live pay
cheque to pay cheque and 4 in 10 will miss paying bills on
time.
- Unsurprisingly, when it comes to financial health, Boomers are
far ahead of all other generations. Interestingly however, even 18
per cent of individuals with a high annual income ($150,000 +) have below-average financial health,
suggesting that a higher income does not always translate to good
financial habits.
Quebec Generational Sociodemographic Trends
The TD Financial Health Index also looked at key demographic and
regional differences across Canada.
Key findings include:
- When it comes to financial health, Quebec is the "healthiest province" (with an
overall score of 67.1 out of 100). Furthermore, urban and suburban
dwellers in Quebec tend to be more
financially healthy than rural residents.
- Although those living in cities have higher financial health
than those living in rural areas, there is still a large amount of
variation within Canada's cities.
Among city dwellers, those in Quebec
City and Montreal score as
the most financially healthy (72 and 68 out of 100,
respectively)
"Asking for help when it comes to money is a critical step
towards financial confidence," Émile Khayat, Senior Regional
Manager, TD Wealth Financial Planning. "Let's remove the stigma
around money conversations and tell Canadians and Quebecers that
there are no dumb questions when it comes your finances."
Khayat adds that a range of in-person and self-serve resources
are available to navigate your financial needs, including a mix of
digital, phone and in-branch interactions to assess your situation
and help reach your goals. "For example, you may enjoy the
convenience of using TD MySpend to track your daily spending and
saving, and then want to come in for a face-to-face conversation to
discuss your larger financial plan."
Commitment to Financial Education
TD provides advice, tools and programs aimed at helping
Canadians live their lives with greater financial confidence.
- Through its global corporate citizenship platform, The Ready
Commitment, TD funds a wide-range of educational initiatives that
work closely with individuals and communities to help raise
financial literacy levels across North
America.
- TD colleagues help deliver financial education programs in many
communities, such as Money Matters and Your Money.
- TD MySpend is a mobile money management app that helps you
track your purchases and transactions made from your personal TD
Canadian dollar savings, chequing and credit card accounts and
automatically groups them into categories, so you know exactly
where your money is going.
- TD colleagues are available in our over 1,100
branches across the country to help provide personalized
financial assessments and help customers reach their financial
goals.
- The TD Newsroom provides a range of information about personal
finances, budgeting and fraud prevention.
Based on learnings from the TD Financial Health Index, TD will
launch a new financial education series later this year. The
program will deliver foundational financial literacy skills like
budgeting and saving, giving Canadians the opportunity to enhance
their financial know-how, in-person, from a TD Advisor in their
community. For additional findings on financial health in
Canada, please view the complete
TD Financial Health Index at newsroom.td.com.
About the TD Financial Health Index
Based on the U.S. Financial Health Network's Financial Health
Pulse and adapted to a Canadian context, the TD Financial Health
Index relies on eight indicators of financial health, two in each
of four categories (spend, save, borrow, and plan). From these
indicators, a Financial Health Score can be calculated, which is a
score that runs from 0-100. Those with scores from 0-39 are
financially vulnerable. Those with scores from 40-59 are
financially coping (low), and those with scores from 60-79 are
financially coping (high). Those with scores of 80-100 are
considered financially healthy.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively
known as TD Bank Group ("TD" or the "Bank"). TD is the fifth
largest bank in North America by
branches and serves over 26 million customers in three key
businesses operating in a number of locations in financial centres
around the globe: Canadian Retail, including TD Canada Trust, TD
Auto Finance Canada, TD Wealth (Canada), TD Direct Investing, and TD
Insurance; U.S. Retail, including TD Bank, America's Most
Convenient Bank®, TD Auto Finance U.S., TD Wealth (U.S.), and the
Bank's investment in TD Ameritrade; and Wholesale Banking,
including TD Securities. TD also ranks among the world's leading
online financial services firms, with more than 13 million active
online and mobile customers. TD had CDN$1.4
trillion in assets on July 31,
2019. The Toronto-Dominion Bank trades under the symbol "TD"
on the Toronto and New York Stock
Exchanges.
SOURCE TD Bank Group