TD survey finds more than two in five Gen Y Canadians consider parents
their most trusted financial advisor
TORONTO, April 28, 2014 /CNW/ - Canadian millennials have a difficult
set of competing financial priorities such as monthly bills, paying
down student loans, covering a night out and still trying to put
something aside towards their savings. They also have competing sources
of advice on how to balance those priorities, including their parents
and peers. But as a recent TD survey discovered, only a third of Gen Y
Canadians turn to a bank financial expert for help, even though those
who do work with a financial advisor say they are more likely to have
money left over each month to put towards their financial goals.
"Good financial habits are something everyone can develop, and for many
people, that starts with learning from their parents, followed up with
specialized advice that a financial expert can provide," said Raymond
Chun, Senior Vice President, Everyday Banking, Personal & Indirect
Lending, TD Canada Trust. "Parents have a lot of wisdom to pass along,
but with the wide variety of financial products and services available
today, it's understandable they might not have all of the answers their
children need."
The fundamentals of personal finance, such as managing a budget, don't
change from generation to generation - it's balancing money-in with
money-out. But Chun says what can change are the economic realities
facing younger Canadians, which is why they should build a strong
financial routine with the right blend of professional and familial
financial advice.
Casie Stewart is a 31-year-old social media specialist and blogger who
recently spent five years paying off her student debt. She agrees her
parents are good role models when it comes to responsible financial
habits but says their specific financial advice doesn't always apply to
her situation.
"My parents always taught me to save, but it's difficult when you don't
have much money coming in," she said. "It was haunting to have debt
from school and I didn't know how to manage it."
Casie says that's why she also turned to a professional financial
advisor for help, after explaining to her parents some of the
difficulties she had saving money.
"I met with a financial advisor because I knew I needed help to turn my
finances around," she said. "I set a goal to be debt free by 30. For
five years I made monthly payments and never missed one. It was really
helpful to keep that five year goal in mind, and now I'm looking at
different types of financial goals."
Chun agrees. Starting good habits from the first pay cheque and talking
to a financial advisor to complement the advice from parents can set
the foundation for achieving short-term and long-term financial goals,
he said.
Here's his Top-Five list to help Gen Y Canadians meet their financial
goals:
-
Document spending for a month - at the end of that month, you'll have a much better idea of how much of
your money is spent on essential items and on discretionary ones, and
whether you need to cut back or allocate a maximum monthly spend in
some areas.
-
Develop a monthly budget - assign dollars to all ongoing essential expenses like rent, student
loan repayments, groceries and entertainment.
-
Repetition is king - revisit and revise your budget as your financial situation evolves and
as your income, lifestyle, and financial goals change. Consider setting
a reminder on your smartphone to track and examine your budget each
month.
-
Save - arrange for an automatic transfer of a set amount into a savings account
each week so the money is put away before it can be spent. It's not the
amount that matters, but rather starting a good savings habit that can
grow along with your income.
-
Talk to a financial advisor - according to the survey, Gen Y Canadians who have a budget, follow it
and work with a financial adviser are more likely than their peers to
have money left over at the end of each month to put towards their
financial goals.
For online tools to complement advice from parents and a financial
advisor please visit: www.tdcanadatrust.com/budget
About the TD Canada Do Parents Know Best Poll
TD Canada Trust commissioned Environics Research Group to conduct an online custom survey of 1,323 Gen Y Canadians within a
broader sample of 6,015 Canadians aged 18 years and older. Responses
were collected between February 11 and 25, 2014.
About TD Canada Trust
TD Canada Trust offers personal and business banking to more than 11.5
million customers. We provide a wide range of products and services
from chequing and savings accounts, to credit cards, mortgages and
business banking, to credit protection and travel medical insurance, as
well as advice on managing everyday finances. TD Canada Trust makes
banking comfortable with award-winning service and convenience through
24/7 mobile, internet, telephone and ATM banking, as well as in over
1,100 branches, with convenient hours to serve customers better. For
more information, please visit: www.tdcanadatrust.com. TD Canada Trust is the Canadian retail bank of TD Bank Group, the
sixth largest bank in North America.
SOURCE TD Canada Trust
