The Kitchen Table Forecast, a study conducted among 1,515 Canadian citizens, has found that two-thirds of Canadians are worrying about their financial fortunes. The study was commissioned by non-profit organisations Financial Planning Standards Council (FPSC) and Credit Canada. The survey tried to find consumer context to reports on slowing economic growth by asking Canadians about a series of “kitchen table” issues—the sort of daily financial concerns that confront people on a daily basis, such as bill payments and debt, cost of living, job security and bankruptcy. It comes on the heels of a global report by The Organisation for Economic Co-operation and Development (OECD) that suggests Canada is showing signs of a sharp decline in growth in 2019.
“Canadians are feeling stressed about their finances and are often at a loss to improve their situation,” said author, personal finance educator and FPSC’s Consumer Advocate, Kelley Keehn. “This hopelessness can cause people to do nothing, and possibly make their condition worse. Uncertainty about an ever-changing job market and economy only intensifies the average person’s confidence and ability to handle the ebb and flow that life inevitably presents.”
The “R word”—Four-in-10 Canadians feel economy will get worse in 2019.
The report did not ask about the dreaded “R-word” (recession) specifically; however, four-in-10 Canadians (42 per cent) feel that the economy will get worse in 2019 – while 36 per cent believe it will stay the same. Across the country, people aged 55-plus are significantly more likely than those under 55 to feel the economy will get worse in 2019 (47 per cent vs. 39 per cent). Meanwhile, Quebecers (at 46 per cent) are more confident than the rest of Canadians (34 per cent) that the economy will stay the same in 2019.
“It’s no surprise people over 55 are more pessimistic (or realistic) when it comes to our economy. This isn’t their first rodeo and they know the red flags,” says Credit Canada CEO, Laurie Campbell. “Insolvency rates were up by more than five per cent last fall, we’ve seen five interest rate hikes since mid-2017, and the cost of living continues to rise. If debt levels don’t come down and people don’t start to get serious about paying off their debt, it’s only a matter of time before we’re in major trouble. You can only bury your head in the sand for so long.”
