Canadians spending less during pandemic: study

 

Those looking for a silver lining during the pandemic may be encouraged to know many Canadians have taken this time to save some money.

A study from Payments Canada has found that 75 per cent of respondents are spending less during the pandemic.

According to the findings, 62 per cent are using cash less frequently, and 42 per cent avoid stores that don’t have contactless payment options.

Further, 93 per cent said they avoided going out at all except for necessities.

“The COVID-19 pandemic has highlighted the convenience of everything digital, from video conferencing, on-demand entertainment, to digital payments,” Tracey Black, president and CEO of Payments Canada, said in a news release.

“Cash and cheque payments have declined dramatically, having been replaced with contactless payments and other types of electronic payments. While we have seen a continued shift towards digital payments over a number of years in Canada, there’s no doubt that the prevailing pandemic has accelerated this shift - and will likely act as a catalyst in transforming the Canadian payment landscape forever,” she continued.

However, part of the reason many Canadians have been more frugal during the pandemic is related to their personal finances—44 per cent reported a decrease in their income, and 51 per cent said the pandemic has negatively impacted their retirement savings or other investments.

Moreover, 26 per cent said the pandemic has impeded their ability to pay bills on time.

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