Saving to buy a home or for retirement is tricky for many Canadians according to a survey by CIBC.
The lender says that 85% of Canadians say that they need to save more but two thirds are not making it a priority. Among the main reasons is that they believe that money is for pleasure or enjoyment.
That’s not necessarily because budgets are tight. Most respondents (82%) say that they could cut back by $360 per month before feeling the pinch. At that rate, the minimum downpayment for an average Canadian home could be saved in 5.7 years.
CIBC’s survey shows that 62% of respondents receive extra money each year as gifts or bonuses amounting to an average $2,300, further speeding up the ability to save for a downpayment – but 44% say they spend it.
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