Apparently, household savings in Canada skyrocketed during the pandemic. According to Statistics Canada, the savings rate briefly jumped to more than 25% in 2020, then dropped back down to around 10% in 2021. Rates like these hadn’t been seen in ages.
Judging from these statistics, good saving habits are making a big comeback, thanks to or despite the pandemic.
Statistics Canada also reports that during this period, Canadian banks accumulated record deposit balances. Indeed, more than $200 billion is currently sitting in banks. Is your travel fund lying dormant in a savings account while you wait for your next opportunity to head South? Are you holding on to cash that you would normally spend on cultural, restaurant and other struggling industries? Or are you thinking about using these savings to get out of debt or to stop being so dependent on your biweekly paycheque?
Have your money habits changed that much?
Saving is hard, and working from the comfort of your home doesn’t make it much simpler.
When we take a closer look at the relatively widespread belief that everyone and their mother saved money during the pandemic, it doesn’t quite hold up—or at least, not everyone has benefitted equally.
Some didn’t have the option of teleworking and reducing their travel costs, while others lost their jobs altogether. Despite the government support measures for individuals and businesses, job losses—and the resulting career changes—had a significant financial impact on many households.