75% say they have strong financial habits,
yet 73% admit to actions over the last year that could be hurting
their financial wellbeing
TORONTO, Sept. 10,
2024 /CNW/ - There is a paradox in Canadians'
financial behaviour, according to RBC's new Financial Habits Poll.
While a significant 75% of respondents believe they possess good
financial habits, with 62% rating their habits as above average
compared to their friends and family, the data uncovers a different
reality.
Over the past year, more than a third of respondents confessed
to not setting financial goals (38%), not dedicating time to
financial planning (37%) and failing to monitor their expenses
(34%) – all of which are essential habits for financial wellbeing.
One-in-five (21%) even admit to simply ignoring money issues when
they come up. These findings highlight a discrepancy between how
Canadians feel about the steps they are taking to manage their
money and the practice of building and sticking to good financial
habits.
"There is a concerning gap between perceived confidence and
actions when it comes to Canadians' financial habits," says
Peter Tilton, chief digital officer,
Personal & Commercial Banking at RBC. "RBC is committed to
helping our clients close that gap and improve their financial
wellbeing."
Good financial habits can improve your wellbeing
The
study also showed that Canadians are acutely aware of the positive
impact that good financial habits can have on their overall
wellbeing, with a significant majority (81%) acknowledging this
connection. However, the challenge of finding time to cultivate
these habits is a common struggle, with two-in-five (39%) Canadians
citing this as a barrier.
One-third (34%) of respondents also admit to struggling with
making good financial habits stick. A concerning 12% of Canadians
report that they never dedicate time to fostering good financial
habits, and nearly half (48%) only do so once a month or less.
Despite these challenges, three-quarters (76%) of Canadians
recognize that good financial habits have made them more resilient
during times of economic uncertainty. This data underscores the
importance of ongoing efforts to support Canadians in their journey
towards improved financial wellbeing.
"While setting financial goals and adopting good financial
habits takes time and may seem difficult at first, you don't have
to do it alone," says Tilton. "With the help of our world-class
digital capabilities like NOMI, clients can automate
savings, take the manual calculator work out of setting up and
tracking a budget, and even forecast future cashflow. It empowers
clients with insights and easy ways to incorporate good financial
habits everyday, which can make them feel better and more confident
in managing their money."
NOMI can reduce friction in managing money
While the
poll found that the majority (55%) of respondents aren't always
confident in their financial decisions and 38% stress about their
finances at least weekly (for 9% it's multiple times a day), RBC's
NOMI can help.
NOMI, a globally recognized and award-winning suite of
capabilities, uses artificial intelligence to deliver personalized
insights to help clients build confidence in managing their
money.
"NOMI has been enormously successful with our clients,
playing a big part in tailoring their experience in the RBC Mobile
app," says Tilton. "All the data-driven insights generated are
hyper-personalized to our client's individual finances. The intent
is to help them manage their everyday finances by removing the
friction associated with making good financial routines stick."
For example, NOMI Find & Save uses predictive
technology to find money clients can spare and automatically sets
it aside for them. Since it launched in 2017, NOMI Find &
Save has helped clients put aside approximately $6.5 billion into savings. Clients using this
feature have saved on average around $495/month—adding up to approximately
$5,900 per year.
NOMI Insights for RBC InvestEase helps
clients start and stick to their savings and investing strategies
with timely nudges when spare cash is available. NOMI
Budgets sets and keeps track of a variety of expenses, from
groceries to household to entertainment. And NOMI Forecast
provides clients with a quick seven-day view into their future
cashflow, showing upcoming preauthorized payments from any RBC
deposit account. More information about all the NOMI
capabilities is available at www.rbc.com/NOMI.
2024 RBC Financial Habits Poll
|
RESPONSE
|
CAN
|
BC
|
AB
|
SK /
MB
|
ON
|
QC
|
AC
|
|
"Agree"
|
|
I have good financial
habits
|
75 %
|
79 %
|
76 %
|
75 %
|
74 %
|
74 %
|
71 %
|
|
When I compare myself
to my family and friends, my financial habits are above
average
|
62 %
|
63 %
|
64 %
|
57 %
|
65 %
|
57 %
|
59 %
|
|
Building better
financial habits would increase my overall wellbeing
|
81 %
|
84 %
|
89 %
|
88 %
|
85 %
|
66 %
|
88 %
|
|
My financial habits
have made me more resilient during times of economic
uncertainty
|
76 %
|
78 %
|
76 %
|
74 %
|
76 %
|
76 %
|
76 %
|
|
I struggle to find the
time to maintain good financial habits
|
39 %
|
38 %
|
41 %
|
42 %
|
40 %
|
35 %
|
40 %
|
|
I can't seem to make
good financial habits stick
|
34 %
|
31 %
|
42 %
|
40 %
|
35 %
|
31 %
|
33 %
|
|
I'm not always
confident in my financial decisions
|
55 %
|
49 %
|
67 %
|
62 %
|
60 %
|
45 %
|
52 %
|
|
RESPONSE
|
CAN
|
BC
|
AB
|
SK /
MB
|
ON
|
QC
|
AC
|
|
"Yes"
|
|
NET: At least one of
the financial habits below have occurred in my financial routines
in the past year
|
73 %
|
73 %
|
78 %
|
72 %
|
76 %
|
69 %
|
68 %
|
|
Not keeping track of my
expenses
|
34 %
|
36 %
|
33 %
|
34 %
|
38 %
|
26 %
|
35 %
|
|
Not allocating time to
plan my finances
|
37 %
|
38 %
|
47 %
|
30 %
|
40 %
|
33 %
|
31 %
|
|
Ignoring my money
issues
|
21 %
|
19 %
|
28 %
|
22 %
|
21 %
|
18 %
|
21 %
|
|
Spending more than I
earn on non-essential purchases
|
27 %
|
28 %
|
30 %
|
26 %
|
27 %
|
25 %
|
24 %
|
|
Missing a bill
payment
|
16 %
|
14 %
|
18 %
|
16 %
|
16 %
|
17 %
|
15 %
|
|
Not saving or investing
even when I have money to do so
|
28 %
|
23 %
|
34 %
|
33 %
|
30 %
|
26 %
|
23 %
|
|
RESPONSE
|
CAN
|
BC
|
AB
|
SK /
MB
|
ON
|
QC
|
AC
|
|
"Agree"
|
|
Constantly comparing
how I'm doing financially to others
|
33 %
|
28 %
|
40 %
|
27 %
|
36 %
|
32 %
|
31 %
|
|
Spending what I want
now without thinking about my financial future
|
32 %
|
30 %
|
34 %
|
31 %
|
36 %
|
28 %
|
29 %
|
|
Not setting financial
goals for the short or long term
|
38 %
|
36 %
|
40 %
|
29 %
|
41 %
|
37 %
|
35 %
|
|
Not having a clear
understanding of my cash flow
|
22 %
|
22 %
|
23 %
|
20 %
|
23 %
|
21 %
|
27 %
|
|
RESPONSE
|
CAN
|
BC
|
AB
|
SK /
MB
|
ON
|
QC
|
AC
|
|
"On average, how
often do you do the following"
|
|
Multiple times a day -
I stress about my personal finances
|
9 %
|
6 %
|
11 %
|
8 %
|
10 %
|
6 %
|
10 %
|
|
At least weekly - I
stress about my personal finances
|
38 %
|
35 %
|
45 %
|
30 %
|
40 %
|
38 %
|
35 %
|
|
Never - I spend time
working on creating good financial habits
|
12 %
|
12 %
|
7 %
|
13 %
|
13 %
|
11 %
|
17 %
|
|
Once a month or less -
I spend time working on creating good financial habits
|
48 %
|
54 %
|
49 %
|
52 %
|
47 %
|
47 %
|
37 %
|
About the 2024 RBC Financial Habits
Poll
These findings are from a survey conducted by
RBC from July 12 to July 16, 2024,
among a representative sample of 1,505 online Canadians who are
members of the Angus Reid Forum. The survey was conducted in
English and French. For comparison purposes only, a probability
sample of this size would carry a margin of error of ±2.53
percentage points, 19 times out of 20.
About RBC
Royal Bank of Canada is a global financial institution with
a purpose-driven, principles-led approach to delivering leading
performance. Our success comes from the 100,000+ employees who
leverage their imaginations and insights to bring our vision,
values and strategy to life so we can help our clients thrive and
communities prosper. As Canada's
biggest bank and one of the largest in the world, based on market
capitalization, we have a diversified business model with a focus
on innovation and providing exceptional experiences to our more
than 18 million clients in Canada,
the U.S. and 27 other countries. Learn more at rbc.com.
We are proud to support a broad range of community initiatives
through donations, community investments and employee volunteer
activities. See how at rbc.com/community-social-impact.
SOURCE RBC Royal Bank