Meeting their own income goals through investments becomes increasingly challenging for young Canadians striving to fulfill their aspirations.
Survey results released in May by Co-operators, a Canadian financial services provider, highlighted the lack of confidence among young Canadians in their investment abilities.
The online survey was conducted with a national sample of 1,500 adult residents of Canada between Jan.12 and 16. The results indicate that only 26 per cent of Canadians aged 18 to 44 feel confident in their ability to choose profitable investment opportunities. Additionally, 38 per cent answer that they don’t have sufficient knowledge about investing, and 44 per cent feel they don’t have enough funds to invest.
“The challenges of today’s economic climate, including high interest rates and cost of living, are intensified by the knowledge gap that exists for young Canadians,” said Emmie Fukuchi, chief executive officer at Co-operators.
Chad MacKenzie, a financial advisor at Co-operators, pointed out that social media also contributed to these concerns.
The overwhelming amount of information available online and the influence of social media make it challenging for young Canadians to discern accurate information. Moreover, the use of different words on social media platforms adds an extra layer of complexity to the situation, MacKenzie said.
Lacking confidence in investing puts young Canadians at risk, particularly those who have specific financial goals, dreams, and aspirations, MacKenzie warned.
The survey also shows that younger individuals are less likely to work with financial advisors compared to older age groups. However, those who do seek professional advice feel more confident about their financial decisions, which highlights the need for financial advice and education.
MacKenzie emphasizes young people’s right to financial advice regardless of income or financial goals. He encourages individuals to consult certified financial professionals, cautioning against relying solely on social media for information.
“Social media should be used as a starting point, not a solution,” MacKenzie said.
MacKenzie further recommended that young people begin investing early and consistently, regardless of the amount, as the best approach for securing their financial future.
“Even a small monthly contribution can have a massive impact when you look at that over 20 or 30 years,” MacKenzie said.
“It’s our responsibility as financial services providers to deliver credible information and engage in honest, transparent conversations about how even the smallest actions today can secure tomorrow’s future,” Fukuchi added.