Canada NewsWire
TORONTO, Feb. 8, 2024
TORONTO, Feb. 8, 2024 /CNW/ - A special Valentine's Day report from the BMO Real Financial Progress Index reveals that while the majority of Canadian couples are compatible in terms of financial planning discussions and approaches, spending continues to be a source of disagreement.
More than a third (35 per cent) of partnered Canadians believe their significant other spends too much money and 32 per cent say spending is often a source of conflict in the relationship. In addition, 36 per cent admit they are not always truthful about their finances to their partners and/or spouse.
The survey explores how couples approach financial planning and communicate their priorities, and found:
"Many couples continue to underestimate the emotional implications involved with money; this can lead to miscommunication, disappointment and conflict," Gayle Ramsay, Head, Everyday Banking, Segment & Customer Growth, BMO. "Relationship compatibility should also include understanding your partner's financial goals, spending habits, existing debt and financial obligations. Working with a financial advisor can help couples bridge the communication gap and develop a plan that supports their unique financial goals to help them make real financial progress together."
The BMO Real Financial Progress Index also found that while Gen Z and Millennial couples are more likely to share financial responsibilities equally, there are opportunities to improve financial fidelity.
Gen Z (ages 18 to 24) couples are among the most likely to share equal responsibility for initiating conversations about household finances (72 per cent) and setting a household budget (68 per cent). However, over half (52 per cent) say their partner and/or spouse spends too much money and 42 per cent admitted they sometimes lie about their finances – more than any other generation. Similarly, nearly a third (32 per cent) of younger Millennial (ages 25 to 34) couples say they sometimes lie about their finances and 48 per cent believe their partner and/or spouse spends too much money.
When evaluating their partner's finances, Gen Z say they would be most concerned about their partners' credit card debt (48 per cent), credit score (47 per cent) and mortgage debt (43 per cent). Younger Millennials are the most concerned about their partners' credit card (46 per cent) and mortgage (46 per cent) debt, followed by their credit score (43 per cent).
"It is important to communicate your financial expectations early and frequently in order to build a financial future together," said Ms. Ramsay. "BMO encourages Canadians of all ages to have honest conversations about financial priorities, goals and anxieties early and often. Also, take advantage of convenient digital tools to create your shared financial plan and conveniently monitor the progress of your shared financial goals."
Customers can build financial literacy, monitor financial plans, and reach financial goals through BMO's innovative digital tools and resources:
To learn more about how BMO helps customers make financial progress, visit www.bmo.com/main/personal.
Launched in February 2021, the BMO Real Financial Progress Index is an indicator of how consumers feel about their personal finances and whether they are making financial progress. The Index aims to spark dialogue that will help consumers reach their financial goals and to humanize a topic that causes anxiety for many – money.
The research detailed in this document was conducted by Ipsos in Canada from January 2 to 19, 2024. A sample of n= 2,500 adults ages 18+ in Canada were collected. Quotas and weighting were used to ensure the sample's composition reflects that of the Canadian population according to census parameters. This survey has a credibility interval of +/- 2.4 per cent 19 times out of 20, of what the results would have been had all Canadian adults 18+ been surveyed.
BMO Financial Group is the eighth largest bank in North America by assets, with total assets of $1.3 trillion as of October 31, 2023. Serving customers for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to 13 million customers across Canada, the United States, and in select markets globally. Driven by a single purpose, to Boldly Grow the Good in business and life, BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future, and inclusive society.
SOURCE BMO Financial Group
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