Marketwire
TORONTO, ONTARIO--(Marketwired - Aug. 21, 2013) - As part of BMO Financial Group's ongoing commitment to financial literacy and 'Making Money Make Sense', BMO is releasing financial tips throughout the summer to help Canadians make the 'BMOst of summer' in 2013.
BMOst of Summer Financial Tip: Start a 'rainy day' fund this summer.
According to the 3rd Annual BMO Rainy Day Survey, while two-thirds (66 per cent) of Canadians feel prepared financially to handle a financial emergency, the majority (51 per cent) have less than $10,000 in savings to cover unexpected expenses, and another one in five (17 per cent) have less than $1,000.
"Financial emergencies, such as a broken home appliance or major car repairs, can crop up at any time and, without some form of financial cushion, can potentially cause households to take on more debt than is necessary," said Frances Hinojosa Personal Finance Expert, BMO Bank of Montreal. "The ideal emergency savings fund should be equal to three to six months of your income."
Ms. Hinojosa added that when deciding where to put your cash reserve, one of the safest routes is to place emergency funds in a savings or investment vehicle with easy access and a high level of principal stability. These include money market mutual funds, high interest savings accounts and Tax Free Savings Accounts (TFSA).
BMO offers a number of products and services that can help Canadians get more out of every dollar they spend this summer. For more details on how to make the 'BMOst of Summer,' drop by a BMO branch or visit www.bmo.com.
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly-diversified North American financial services organization. With total assets of $555 billion as at April 30, 2013, and more than 46,000 employees, BMO Financial Group provides a broad range of personal and commercial banking, wealth management and investment banking products and solutions.