Canadians’ spending habits are heavily influenced by the people around them, and it’s hurting their abilities to reach their financial goals.
While most Canadians (82%) in relationships speak openly and honestly with their partners about money, one-third say their other half’s spending habits are affecting their finances, finds a survey by Credit Canada Debt Solutions and Capital One Canada.
Further, peer pressure can wreak havoc on budgeting, with 44% of Canadians saying friends press them to spend more than they can afford when going out. And after the bill arrives, 22% typically end up paying more than their fair share.
“Family and friends need to fully understand your objectives so that they can help you achieve your financial goals,” says Laurie Campbell, CEO of Credit Canada Debt Solutions. “There is no shame in taking control of your money.”
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The majority of Canadians (92%) have used excuses to be cheap, including saying they’re paying off debt (77%), saving for a home (55%) and saving for a child’s education (50%).
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But instead of using excuses, try the following tips to help you stay on track.
- Share your financial goals with family and friends.
- Write your goals down and keep a log of your progress.
- Identify your personal money vices and develop a budget that will help you cut back. For instance, some areas people have cut back spending include groceries (82%), going out with friends (81%), buying gifts (71%) and planning your wedding (70%). Interestingly, 76% of women are willing to cut back on wedding plans, compared with 63% of men.
- Organize plans with friends that don’t involve spending money.