The central financial institution mentioned Thursday that its 2024 survey on cost strategies reveals Canadians stored a median of $156 in money available, $16 greater than in 2023. Adjusted for inflation, the Financial institution of Canada mentioned the worth of money available has been “fairly secure” since 2017 regardless of small variations over the COVID-19 pandemic.
Older Canadians most certainly to hold money
The survey confirmed prospects are utilizing ATMs and financial institution branches extra usually, nonetheless, and likewise taking extra cash out per withdrawal.
Damaged down by age group, these 55 and older have been most certainly to have money on their individual at 86.8%, greater than 10 share factors larger than different demographics. Nevertheless it was the youngest surveyed cohort, these aged 18 to 34, who held probably the most of their wallets on common at $206. The Financial institution of Canada mentioned these within the lowest earnings bracket tended to carry the least amount of money, however have been most certainly to pay through money.
Canada bucks the worldwide development of declining money use
The survey of greater than 4,000 people, achieved in partnership with Ipsos from mid-October to mid-November final yr, included a choice of respondents logging their common purchases over a variety of days. These surveyed recommend they have been making roughly one in 5 purchases with money.
Whereas the usage of money was on a gentle decline heading into the COVID-19 pandemic, the Financial institution of Canada mentioned these figures have been resilient over current years. That marks a deviation from different nations, equivalent to america, which Financial institution of Canada researchers identified has seen continued annual declines in the usage of money.
Youthful customers might drive digital cost shift
The Financial institution of Canada mentioned it expects 79% of Canadians had no plans to go cashless in 2024, whereas 8% mentioned they might ultimately achieve this and 13% mentioned they have been already cash-free. These figures have been regular from 2022 and 2023.
Bank cards, in the meantime, proceed to prime the checklist of the most-used cost strategies with 46% of buy volumes. Debit playing cards observe at 23%. Cellular funds—any buy made through a smartphone app, together with these linked to a bank card—are in the meantime gaining traction. Cellular transactions accounted for nearly 5% of purchases in 2024, up a few share factors from a yr earlier.
If these traits preserve tempo, the Financial institution of Canada urged that preferences amongst youthful customers may shift in the direction of holding digital wallets relatively than bodily ones, which may in flip drive down demand for money.
The central financial institution mentioned it research how Canadians’ money behaviours and preferences inform its function managing cost methods within the nation.
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