Overspending is a real issue for many Canadians and despite the apparent public access to credit counseling, many of us do not stick to a monthly budget, and sink into debt. With updated statistics showing Canadian consumers with a 162% debt ratio, a month dedicated to educating consumers on personal finance and credit has never been needed more than now.
The month of November represents Financial Literacy Month and it is dedicated to provide Canadian consumers with the tools to reassess their budgets, and their spending habits, to secure a strong financial future.
Capital One recently conducted a survey across Canada in order to see where we all stand financially. Overall, the survey found that the majority of Canadians did not have a proper budget in place and relied on unrealistic circumstances, like the lottery, to secure their financial future. It also uncovered components and unique gender traits around spending and overspending:
- Women are more likely than men to overspend on groceries, clothing and personal care products, whereas men are more likely to overspend on bigger ticket items like education, shelter and vehicles
- In the past year, 40 per cent of women felt anxious about not being able to pay their bills, as compared to 28 per cent of men
- In planning for a secure future, men are more likely to hope for a salary increase at their current job, whereas women are more likely to hope for a new job that pays significantly more
Despite the difference in how men and women differ in the way personal finance is managed, everyone should understand how to obtain and maintain financial independence. Individual financial protection should always be first priority. A person may be tempted to help a loved one who is having financial difficulty. That person should either refrain from lending their credit and debit cards, and from co-signing any kind of loan or putting any of their loved one’s expenses in their name. Alternatively, if a person does decide to lend money, it should be lent with the understanding that the loan may not be repaid. So consumers should think about whether or not their budget is okay with that possibility.
There are plenty of resources and tools available to help Canadian consumers understand where they stand financially as well as to help them recover from financial difficulties. By highlighting such tools during Financial Literacy Month, consumers are encouraged to keep proper budget planning and debt management a priority.
For budget planning tools, information about credit and overall debt management, visit www.occa.ca or call toll free 1-855-843-6222. OCCA Consumer Debt Relief has been helping thousands of Canadians resolve their debt trouble for over a decade. OCCA can help you!
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