Canadian couples pulling together on money issues
Despite challenging economic conditions faced by many Canadian couples, mounting financial pressure and concerns don’t appear to be driving them to divorce courts in droves. In fact, it appears most are honing their money coping skills and many are reaching out to help others in the family as well.
A recent Investors Group poll of married and common-law Canadians reveals that in the last 12 months, four in ten (39 per cent) have made a better effort to work together with their spouse or partner on making financial decisions and one in four (25 per cent) are talking about money more often.
While 35 per cent of couples admit they disagree about financial matters, 80 per cent said their disagreements were mild.
“Money issues can test the mettle of any couple,” says Jack Courtney, Assistant Vice President of Advanced Financial Planning at Investors Group. “But our research suggests that Canadians are engaging in more communication about money and collaborating on their financial decisions. This is a healthy approach that can help mitigate serious problems down the road.”
For better or for worse
It’s not a bed of roses for all Canadian couples. Fourteen per cent characterized their disagreements about financial matters as severe and 18 per cent said disagreements affected other aspects of their relationship.
A similar Investors Group survey conducted in July 2005 indicated a greater number of Canadian couples had severe disagreements about money. Those results revealed that a quarter of adults (25 per cent) described their disagreements with their partners about finances as severe. An equal portion (23 per cent) said their financial disagreements affected other aspects of their relationship.
Helping others in the family
In addition to more efforts to collaborate, Canadian couples are also helping immediate or extended family members during these challenging times. Almost one-fifth (19 percent) report they are providing financial support to at least one family member and the number rises to 24 per cent among females who responded. This suggests women are acting as the “financial caregiver” in many families.
The more things change
Some things remain constant. In 2005, the most common spat about money for 31 per cent of Canadians was about spending money, both in general and on specific purchases. Only nine per cent argued about borrowing and debt issues. In comparison, today, nearly three in ten Canadians (27 per cent) argue about money and spending habits while borrowing and debt is the root cause of disagreements for nine per cent of Canadians.
And despite stock market volatility and the economic downturn, a majority of Canadians (55 per cent) report their household is the same financially as compared with a year ago and 19 per cent say it has improved. Across the country, Ontarians (31 per cent) and Albertans (30 per cent) were most likelyto say they were worse off.
Of the quarter (26 per cent) of Canadians who say they are worse off, 64 per cent attribute their status to a decline in the value of their investments. Other factors affecting Canadians who say their financial condition has worsened include underemployment (34 per cent), job loss (32 per cent) and declining real estate values (30 per cent). Sixteen per cent of survey respondents indicated that either they or their spouse have lost a job in the last year.
Scaling down and feeling down
While 45 per cent of married or common-law Canadians have taken measures to reduce their personal spending, they continue to feel the less tangible effects of the economic downturn. Survey respondents report feeling uncertain (28 per cent), enjoying life less (18 per cent), feeling depressed (13 per cent) and losing sleep (13 per cent).
“While Canada may be more fortunate than other countries, individuals and families are feeling the impact of world financial events,” says Courtney. “As we face these challenges, taking a practical approach will help stay the course.”
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