They had never experienced inflation. Quebecers aged 18 to 45 have just endured a brutal baptism and now 75% of them are postponing or canceling major projects.
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“We’re talking about buying a house, having a baby or adopting a dog,” says Maly Charbonneau of the company Welcome Spaces.
The company Repentigny, which connects people online with accountants, financial planners, insurers or mortgage brokers, conducted a survey to gauge the financial pulse of young Quebecers.
Result: The holiday season will be more modest this year.
34% also plan to spend less than $100 on gifts this year (73% plan to reduce the list of who they will give them to).
“More than one in three young people – 38% – will increase their debt at Christmas,” fears Ms Charbonneau.
Maly Charbonneau photo from LinkedIn
Another alarming data: 24% of young people aged 18 to 45 will reduce their food spending next year.
“There is clearly a problem when we start restricting basic needs like food,” the young professional states.
In short, these are difficult times, as one would expect after more than two years of inflation.
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Quebecers would benefit from better financial education. “I have a bachelor’s degree in finance and I’m missing a lot of pieces. “We don’t talk about money enough in school in Quebec,” says Ms. Charbonneau.
How can people get out of debt if they don’t have the means to do so?
These gaps in financial literacy drive many into the arms of bad companies, she says.
Screenshot from Facebook
“Fraud is on the rise, people are being caught by criminals who are taking advantage of their financial distress,” she assures.
Another example: Facebook pages that offer loans to anyone, “even if they are unemployed or on welfare.”
Whether the customer applies for a $1,000 or $70,000 loan, Ms. Charbonneau charges $352 in “administrative fees.”
The Stop Debttes Facebook page is not affiliated with the debt solutions company StopDettes.ca.
Everything can quickly become confusing and vigilance is required when looking for ways out of financial problems.
HIGHLIGHTS OF THE YOUNG QUEBECANS SURVEY
A misconception about the extent of inflation
- 55% Young people say they are seeing inflation over 5%! Of which 20% They report experiencing inflation of more than 10%.
Greater attention to prices
- 94% say they pay more attention to prices when making purchases.
- 87% Mention that they are more likely to delay a purchase to wait for sales.
Major projects were sacrificed to a large majority
- 75% of respondents say they have had to postpone or cancel important life plans due to inflation.
Forced to spend less for the holidays
- 31% are planning to cut their vacation budget this year.
A declining standard of living
- 54% have experienced a decline in their standard of living compared to the situation before the pandemic. Less than 10% People have seen their standard of living increase.
Gifts often valued at less than $100
- 34% Plan to spend less than $100 on gifts this year.
Much more popular loyalty programs
- 72% have used in-store loyalty programs more frequently this year.
Food choices are influenced by inflation
- 86% Mention that they are changing their food choices more often than in the past to save money.
Many people have debts after their vacation
- 38% are thinking about increasing their debt due to holiday spending.
A reduction in spending in 2024
Percentage of respondents who need to reduce this type of spending in the next year.
- 24% grocery store
- 61% Restaurants
- 48% Excursions and leisure
- 31% Coffee
- 31% Trip
- 39% Clothing and cosmetics
Fewer names on the gift list
- 73% plan to narrow down the list of people they’re giving gifts to this year.
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