- 35 per cent of partnered Canadians believe their significant
other spends too much money.
- 36 per cent admit they are not always truthful to their
partner and/or spouse about their finances.
TORONTO, Feb. 8, 2024
/CNW/ - A special Valentine's Day report from the BMO Real
Financial Progress Index reveals that while the majority of
Canadian couples are compatible in terms of financial planning
discussions and approaches, spending continues to be a source of
disagreement.
More than a third (35 per cent) of partnered Canadians believe
their significant other spends too much money and 32 per cent say
spending is often a source of conflict in the relationship. In
addition, 36 per cent admit they are not always truthful about
their finances to their partners and/or spouse.
The survey explores how couples approach financial planning and
communicate their priorities, and found:
- Honey, Let's Talk about Money:
- Among the 51 per cent of couples that believe finances should
be discussed during the early stages of a relationship, 10 per cent
believe these conversations should happen after the first few dates
and 41 per cent believe these conversations should take place when
the relationship becomes official. Nearly a third (31 per cent) say
conversations about finances should take place when a couple is
planning on living together.
- 12 per cent of couples believe these conversations should begin
when getting engaged and/or married.
- Financially Transitioning from Me to We:
- More than a third (35 per cent) of couples believe getting
engaged is the right time to combine finances with their partner
and/or spouse, followed by when the relationship becomes official
(22 per cent) and when moving in together (9 per cent).
- Nearly one in five (18 per cent) of partnered Canadians do not
share or integrate their finances with their partner and/or
spouse.
- Evaluating Spending:
- Nearly half (48 per cent) of Canadians admit to spending more
money than they know they should and 59 per cent say their partner
and/or spouse is the more frugal party in the relationship.
- Compatibility Quiz:
- 82 per cent of couples believe they are compatible because they
share similar financial goals and the same proportion have combined
and/or integrated their finances with their partner and/or
spouse.
- Over two thirds of couples share equal responsibility for
initiating discussions about household finances (68 per cent) and
setting goals for their family (67 per cent).
- 24 per cent admit that different levels of income have created
tension in their relationships.
- Relationship Financial Dealbreakers:
- When evaluating their partner's finances, partnered Canadians
say they would be most concerned about their partner's mortgage
debt (47 per cent), credit card debt (38 per cent), credit score
(33 per cent) and differences in income (26 per cent).
"Many couples continue to underestimate the emotional
implications involved with money; this can lead to
miscommunication, disappointment and conflict," Gayle Ramsay,
Head, Everyday Banking, Segment & Customer Growth, BMO.
"Relationship compatibility should also include understanding your
partner's financial goals, spending habits, existing debt and
financial obligations. Working with a financial advisor can help
couples bridge the communication gap and develop a plan that
supports their unique financial goals to help them make real
financial progress together."
Financial Relationship
Compatibility for All Ages
The BMO Real Financial Progress Index also found that
while Gen Z and Millennial couples are more likely to share
financial responsibilities equally, there are opportunities to
improve financial fidelity.
Gen Z (ages 18 to 24) couples are among the most likely to share
equal responsibility for initiating conversations about household
finances (72 per cent) and setting a household budget (68 per
cent). However, over half (52 per cent) say their partner and/or
spouse spends too much money and 42 per cent admitted they
sometimes lie about their finances – more than any other
generation. Similarly, nearly a third (32 per cent) of younger
Millennial (ages 25 to 34) couples say they sometimes lie about
their finances and 48 per cent believe their partner and/or spouse
spends too much money.
When evaluating their partner's finances, Gen Z say they would
be most concerned about their partners' credit card debt (48 per
cent), credit score (47 per cent) and mortgage debt (43 per cent).
Younger Millennials are the most concerned about their partners'
credit card (46 per cent) and mortgage (46 per cent) debt, followed
by their credit score (43 per cent).
"It is important to communicate your financial expectations
early and frequently in order to build a financial future
together," said Ms. Ramsay. "BMO encourages Canadians of all ages
to have honest conversations about financial priorities, goals and
anxieties early and often. Also, take advantage of convenient
digital tools to create your shared financial plan and conveniently
monitor the progress of your shared financial goals."
Digital Tools for Financial
Literacy
Customers can build financial literacy, monitor financial plans,
and reach financial goals through BMO's innovative digital tools
and resources:
- BMO SmartProgress: This tool helps customers learn more
about important personal finance topics and build financial
literacy anywhere and at any time. It is a free, online financial
education platform featuring customized, interactive content,
including videos and tools, on complex financial planning topics
including budgeting and credit management, homeownership and
investing.
- BMO CreditView: Customers can quickly and
easily check their credit scores and access new tools and advice to
manage their credit profile online and on mobile.
- BMO Insights: Customers get help saving
more, monitoring spending and account values, and spotting unusual
activity with 25 BMO Insights that provide customers free, quick,
and personalized views of their daily spending to help them make
informed decisions. Popular online insights include:
- CashTrack: Using artificial intelligence, these
insights monitor customers' cash flows and let them know if they
will run out of money in the next seven days.
- Spend Categorization: These insights notify customers
when there has been a significant increase in a specific spending
category or if a free trial has expired.
- BMO Savings Amplifier Account: To help make saving easy
and automatic, BMO's new Savings Amplifier Account offers no
monthly fees, a competitive interest rate, and unlimited no-fee
transfers to other BMO accounts. In addition, its digital Savings
Goals feature enables customers to set, track, and manage their
financial goals.
To learn more about how BMO helps customers make financial
progress, visit www.bmo.com/main/personal.
About the BMO Real Financial
Progress Index
Launched in February 2021, the
BMO Real Financial Progress Index is an indicator of how
consumers feel about their personal finances and whether they are
making financial progress. The Index aims to spark dialogue that
will help consumers reach their financial goals and to humanize a
topic that causes anxiety for many – money.
The research detailed in this document was conducted by Ipsos in
Canada from January 2 to 19, 2024. A sample of n= 2,500
adults ages 18+ in Canada were
collected. Quotas and weighting were used to ensure the sample's
composition reflects that of the Canadian population according to
census parameters. This survey has a credibility interval of +/-
2.4 per cent 19 times out of 20, of
what the results would have been had all Canadian adults 18+ been
surveyed.
About BMO Financial
Group
BMO Financial Group is the eighth largest bank in North America by assets, with total assets of
$1.3 trillion as of October 31, 2023. Serving customers for 200 years
and counting, BMO is a diverse team of highly engaged employees
providing a broad range of personal and commercial banking, wealth
management, global markets and investment banking products and
services to 13 million customers across Canada, the United
States, and in select markets globally. Driven by a single
purpose, to Boldly Grow the Good in business and life, BMO
is committed to driving positive change in the world, and making
progress for a thriving economy, sustainable future, and inclusive
society.
SOURCE BMO Financial Group