How clients could save $200 monthly

If your client can’t stick with her monthly cash flow plan, eating out could be the culprit.

That’s because Canadians overwhelmingly admit that restaurant food is their most popular financial guilty pleasure, reveals a survey by Capital One Canada and Credit Canada. Almost three-quarters (72%) of those surveyed say they dine out more than a few times a month, while 71% order takeout with that same frequency. These meals add up to more than $199 in monthly spending, the survey finds.

After restaurants and takeout, Canadians most frequently treat themselves to daily coffee purchases (50%), online shopping (44%), clothes shopping (33%) and beauty services (23%).

When it comes to making financial sacrifices, younger Canadians have the edge, with the survey finding millennials are more willing than those over the age of 55 to hunt for coupons (38% versus 20%), sell possessions (23% versus 5%), cancel subscriptions (20% versus 7%) or get a second job (19% versus 4%).

Failing to save affects relationships

Unsurprisingly perhaps, younger Canadians are also more challenged to save. While the majority of Canadians (65%) believe they’re in good financial standing, one-third (33%) of those under 55 admit they’re not saving at all.

Read: Clients can’t find money to save: survey

One-quarter of those surveyed attributed their lack of financial goals to poor spending habits. That number increases to 39% for millennials.

Further, poor spending has familial repercussions. More than one-quarter of millennials (29%) say they “experience contention” with their spouses over spending. And 27% say they hide their spending from others.

Read: Why clients should discuss finances early in a relationship

About the survey: Responses were collected from 1,510 randomly selected Canadian adults aged 18 and older who were Angus Reid Forum panellists from August 17 to August 21 2017. The margin of error is +/- 2.5%, 19 times out of 20.

Also read:

Help your client overcome the retiree’s dilemma

Divorce leads to small business headaches

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.