Working Canadians fail at this basic financial task

Your client might struggle to meet his monthly budget — if he has one, that is.

Newly released results from a Canadian Payroll Association (CPA) survey reveal that only 52% of those polled say they budget frequently. Of those, 31% say they keep their budgets in their heads — probably not the best strategy for success.

Read: Yes, more clients are retiring with mortgage debt

Further, of those who do budget, only 52% stick to their budgets.

The fallout: a high level of financial stress that ultimately impacts work performance, says CPA.

That finding is confirmed by a Manulife study that reveals financial struggles can cause a cycle of physical and mental health problems, reducing productivity and quality of life.

A root cause of poor cash-flow planning could be a lack of solid financial advice. For example, the association finds that only 38% of Canadians get financial and retirement advice from financial advisors and banks, while 27% rely on family, friends and the internet.

About the survey: A total of 4,766 employees from across Canada, and from a wide range of industry sectors, responded to an online research survey between June 27, 2017, and Aug. 5, 2017, using a convenience sampling methodology.

Also read:

What young clients don’t understand

Tell clients to watch for psychic scams

Expect car costs with older clients

Staff

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