(Toronto) Some Canadians may be overestimating their ability to manage their finances and pay down debt, according to a survey conducted by the Chartered Professional Accountants (CPA) of Canada.
According to survey results, 47% of respondents rated their personal finance skills as either an A or B, but a quarter also admitted to buying things they couldn’t. afford.
The report highlights other gaps in the management of personal finances. For example, 33% of respondents with consumer debt said they did not understand the impact of interest rate fluctuations on their loans.
The survey, conducted online by Ipsos between June 16 and June 23, shows that 57% of respondents with non-mortgage debt have maintained a credit card balance over the past two years.
Doretta Thompson, financial literacy lead for CPA Canada, says that while inflation can be difficult to predict, being in control of your actions can help manage the outcome of your personal finances.
The report also reveals that one in four Canadians believe they wouldn’t be able to scrape together $500 in cash in a day without borrowing or selling property, which is a sign of trouble with cash flow.
