By Troy Media
The TD Financial Health Index finds that four in 10 Canadians are financially struggling, with Albertans lagging when it comes to financial health.
The index by the TD Bank Group is a national benchmarking survey providing a portrait of Canadians’ financial well-being and how they’re managing their personal finances.
The study, released on Tuesday, found that just over a quarter of Canadians surveyed are “financially healthy,” but four in 10 are struggling with some or all aspects of their finances.
“Most Canadians are still unsure about what to do, where to turn and even what questions to ask when it comes to seeking financial advice and information,” said Teri Currie, group head of Canadian personal banking at TD. “Insights from the TD Financial Health Index into the financial well-being of Canadians will help us create better tools, programs and advice for the many Canadians who continue to struggle with a lack of financial confidence.”
When it comes to financial health, Quebec is the healthiest province (with an overall score of 67.1 out of 100), while Alberta lags behind (with an overall score of 61.5 out of 100), said the report.
“Although those living in cities have higher financial health than those living in rural areas, there is still a large amount of variation within Canada’s cities. Among city dwellers, those in Quebec City and Halifax have the highest financial health (with an overall score of 70.7 and 67.6 out of 100, respectively), whereas those in Windsor and Kitchener-Waterloo have the lowest (with an overall score of 57.1 and 59.6 out of 100, respectively),” it said.
The report found that there is a gap between financial health and literacy. There is also a link between financial health and one’s physical and mental health. Additionally, those who are “financially vulnerable” score lower on mental health measures.
On average, women have lower reported financial health than men, particularly amongst younger cohorts. Women are less likely than men to feel confident in their ability to meet their long-term savings goals (41 per cent versus 49 per cent), are less likely than men to have a high annual income (22 per cent of men versus 18 per cent of women make $100,000-plus a year), and are more likely than men to be employed part-time (11 per cent versus eight per cent). Furthermore, three in 10 women underestimate their financial situation, explained the report.