An article I read highlighted a survey released by the Bank of Montreal recently that found 54% of Canadians have more than three months of savings available, while 49 per cent “have access to” more than $5,000, if needed. This implies emergency funds across Canada are moderately established. In the same article, of the 1,000 Canadians polled by Pollara:
- 66% of those polled said they feel ready to withstand a financial emergency this year yet 33% feel unprepared for any financial downturn;
- 19% of folks feeling unprepared said a financial emergency would deplete all their savings.
In another article I read this one conducted by Harris/Decima, respondents were asked how confident they were about being able to raise $2,000 within a month if needed. Amongst the 1,000+ Canadians interviewed:
- 55% said they were extremely or very confident they could raise the cash although 92% said they’d consider borrowing for the money.
- 26% said they couldn’t raise the money no matter what timeline they were given.
Readers, I am curious….where do you stand with emergency funds? Do you feel you need one? Do you borrow for emergencies?
Are these scary financial stats or just scare tactics from the financial industry and media?