Canadians are taking a carefree approach to spending. Only 29% keep track of fixed expenses, such as mortgage, rent or car payments, while 32% don’t track expenses at all, finds poll by Edward Jones.
And with the Canadian household debt-to-income ratio reaching new highs, it’s even more important to watch where your spending. According to Statistics Canada, in Q3 2012 for every $100 in after-tax income, Canadians owe $164.60.
Read: Debt repayment tops 2013 resolution lists
“Having a better understanding of where your money goes, from mortgage payments to a dinner out, can help to identify your current spending habits,” says Michelle Kay-Scott, senior product manager of retirement planning, Edward Jones.
Other key findings:
- Canadians with children are more likely to monitor their expenses (73%) compared to those without children (65%);
- Regionally, Albertans (47%), British Columbians (46%) and Ontarians (40%) are more likely than Quebecers (30%) to keep track of every penny they spend;
- Canadians making $40,000 to $59,000 are more likely than those making $100,000 and over to keep track (45% versus 33%).
Read: Canadians save, pay down debt for retirement
To help Canadians, Edward Jones has launched a new web-based app that identifies the costs of everyday items (e.g. dining out, entertainment), and calculates how spending on these items affects financial goals.
Here are some articles to help clients: