Two-thirds of Canadians have dipped into their savings for a non-emergency, according to a survey.
Part 2 of BMO’s Rainy Day Survey finds that Canadians have withdrawn an average of $7,955 to cover indulgences, including electronics, non-essential home renovations, vehicle upgrades, vacations and large gifts.
The survey also notes some gender differences:
- 68% of women have dipped into their fund for a non-emergency, compared with 61% of men;
- men have taken an average of $10,351 for a non-emergency, while women have taken $5,920, on average;
- women’s top three non-emergency expenses included vacations, home renovations and large gifts;
- men’s top three included vacations, electronics and home renovations; and
- 17% of men have never replaced money taken from fund, compared with 27% of women.
“While it’s promising to see that Canadians consider their rainy-day savings to be primarily reserved for emergencies, their willingness to dip into their fund for an indulgence could be a threat to their financial security,” said Christine Canning, head of everyday banking with BMO Bank of Montreal. “A better approach would be to hold a designated fund for indulgences, to help keep expenses in check.”
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