Research launched November 26th from the Consumer Agency of Canada (FCAC)
From the report:
The Financial Consumer Agency of Canada (FCAC) presented the findings of two research projects during the National Research Symposium on Financial Literacy in Toronto on November 26 and 27. FCAC shared preliminary Canadian results of an international Financial Well-Being Survey and from the Agency’s latest behavioural budgeting research.
- Saving drives financial well-being
Regardless of how much they earn, individuals can substantially improve their financial resilience and well-being by regularly saving even small amounts for unexpected expenses. This is according to preliminary findings from a Financial Well-Being Survey that was recently conducted in Canada and in Norway, Ireland, Australia and New Zealand. Being an active saver is one of the biggest drivers of personal financial well-being, which is defined as being able to comfortably meet financial commitments and needs, now and in the future. However, only about half of Canadians in the sample regularly save money for unexpected expenses, such as vehicle repair or a new roof.
- Financial education leads to sustained budgeting
According to a longitudinal study by FCAC, over half (54%) of Canadians who began budgeting during a 2016 pilot project were still budgeting a year and a half later. During the pilot, FCAC sent targeted financial education messages to users of the Carrot Rewards mobile app to encourage them to start budgeting. 70% of participants who continued to budget after the pilot said they were able to keep up with their financial commitments, compared to just 45% of those who were no longer budgeting.
Find the report here.
What do you think? Is this surprising? Does budgeting change behaviour?