As many as one-third of Canadians rely on social media or friends, rather than on industry professionals, as their primary sources of information on financial products like mortgages, according to a new study by LifeWorks.
In its latest quarterly index, LifeWorks said that, on average, Canadians continue to report negative financial well-being. As of April, the index was at -2.2, which was a troubling result despite a slight improvement over February levels (-2.8).
Of the April respondents, 22% said that they rely on their friends for financial information, while 11% depend on social media. These cohorts had average index scores of -7.2 and -7.3, respectively.
Another 37% said that they rely on family members for such information, with an average index reading of -5.8.
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In stark contrast, 40% said that they depend on financial advisors or other knowledgeable industry professionals as their primary sources of financial information, with an average index score of +4.7.
More than half (56%) of respondents admitted that they are wrestling with some significant hurdles to increasing their financial knowledge, “including lack of time and not knowing where to look,” LifeWorks said.
“Canadians are still feeling the impact of the pandemic on their financial situation,” said Idan Shlesinger, president of retirement solutions and executive vice president at LifeWorks. “While some Canadians have successfully managed their finances during the pandemic, better education is needed to help them plan for the future and overcome the financial challenges they may be facing due to the pandemic.”