Understanding the funds we sock away for a rainy day is a little like those moving targets at the arcade. Canadians aim and fire, but only occasionally do we hit the mark.
Why are we such poor shooters when it comes to stockpiling savings for an emergency? Talk to financial guru Gail Vaz-Oxlade and she’ll tell you one of the reasons rests squarely on the backs of the country’s financial institutions, which have grown adept at selling Canadians credit by pointing to the need for an emergency fund.
“The line of credit eliminates the need for people to save an emergency fund so why would they then be surprised that people don’t have an emergency fund?” Vaz-Oxlade said.
“Because you told them they didn’t need one, that’s why. That’s the problem with putting financial literacy in the hands of pariahs. They absolutely share part of the blame.”
A Bank of Montreal survey released this week found that 56 per cent of Canadians have less than $10,000 set aside in the event of a financialRead More »from How much emergency money do you really need?