Are Your Friends Secretly in Debt?
They just bought a condo and now your friends are traveling -again- plus shopping for new clothes, devices, and dining out four days a week, according to their Snaps and Insta stories.
How on Earth can they afford this?
A new study finds 61 per cent of Canadians often look to their friends and wonder how they can afford their lifestyles.
This was felt most among those aged 18-34 (71 per cent) and 35-44 (66 per cent) who are curious to understand how those around them finance their purchases, the survey from investment firm Edward Jones finds.
The poll revealed looking at the purchases of others may influence Canadians to buy items beyond their budget.
This is shown by an overwhelming majority (93 per cent) of Canadians citing they experience ‘buyer’s remorse’ and admit to regrettable spending habits.
When it comes to age, 96 per cent of those 18 to 34 experience remorse following a purchase.
Not far behind were boomers, with 90 per cent feeling the same once they’ve left the cash register.
The survey also examined the type of purchases Canadians are most likely to regret making:
Eighty-three per cent regret tangible purchases such as, clothing/shoes (35 per cent); jewelry (28 per cent); and electronics (26 per cent).
Of that, millennials were more likely to regret spending money on clothing/shoes (47 per cent), while boomers were more likely to regret spending money on jewelry (34 per cent).
Canadians tend to regret tangible purchases (83 per cent) more than experiential purchases (71 per cent).
“Understanding how you spend money is important when considering your short and long-term goals,” said at Edward Jones’ director of solutions consulting Roger Ramchatesingh.
“For example, if you know you enjoy spending money spontaneously, build this into your monthly budget. When it is unplanned for, it can add up over time and hurt other long-term goals such as retirement or the purchase of a home.”
Additionally, the poll found that only 44 per cent of respondents have a strategy in place and adhere to it.
When it comes to age, 75 per cent of Canadians believe they should have their finances in order between 18-34, yet only 38 per cent in that age group have a financial strategy and follow it.
Close behind are those aged 35-44 with only 44 per cent of that age group having a strategy in place, despite 46 per cent believing finances should be in order by then.
“It’s never too late to get your finances in order,” said Ramchatesingh.