Paul Martin Business Update - July 17th, 2014
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What a difference a generation makes.
BMO Bank of Montreal has just released its mid-year study of the attitudes of Canadians towards their personal finances. Specifically, they looked at two generations and how their views differ – boomers and Millennials.
The one big difference is that millennials – that is people in the 18 to 34 age group – are starting out on a much stronger financial footing than their parents did in the 80s. They have more wealth than their parents at the same point in their lives and they are more educated which translates into higher incomes. The median income for two parent families with kids under 18 at home is more than $90,000.
But while they are starting out with more wealth, they are also carrying more debt because of student loans and more costly housing.
Young people are also more optimistic about the global economy and believe Canada is out of recession and growing once again. Boomers with kids also feel that they are falling behind financially and have little in the way of savings.