Those unlucky in love feeling hopeful about a brighter financial futureA new TD survey reveals 74% of divorced Canadians surveyed consider their financial status the same or better than when they were married.
TORONTO, Feb. 9, 2022 /CNW/ – TD has released its second annual Love and Money survey exploring the financial behaviors of more than 1,700 married, in a relationship and divorced Canadians. Surprisingly, the 2021 survey uncovered that divorced couples are feeling optimistic about their finances. In fact, 74% of divorced Canadians polled consider their financial status the same or better than when they were married.
“Going through a divorce or relationship change can be emotionally and financially overwhelming—often requiring a readjustment of financial goals,” says Melissa Leong, Personal Finance Author, Speaker and Television Personality. “But a divorce or relationship change can also provide an opportunity for the affected individuals to take stock of their financial futures, including a chance to level-up their money management knowledge, and maybe even seek out advice from a financial professional.”
Digging Deeper on Divorce and Finances
TD Love and Money survey results further indicate:
- Post-divorce, 52% said they learned a new financial skill like tracking their spending (28%), making bill payments (24%) and saving for retirement (23%).
- More than half of those surveyed (57%) say they are spending less after divorce and nearly half (45%) consider themselves financially better off.
- More than half (54%) of respondents say it is easier to manage their finances post-divorce.
The survey results also reveal the downside of not talking about finances in relationships. Divorced couples polled were less likely to have regularly discussed money during their marriage, with only 29% of divorced respondents saying they talked about money weekly with their former partner, as compared to 50% of married couples polled who say they have the talk weekly.
The Millennial Approach to Love and Money
Millennials approach love and money in their own unique way and are most likely to manage their banking separately. According to those polled, millennials are more likely than other demographics to keep their money separate from their partners, with 49% of respondents saying they have no common accounts or shared credit cards (63%).
According to Love and Money, millennials are also less tolerant of ‘red flag’ financial behaviors and say they would leave their partner if:
- They never offered to pay for anything (86%)
- They were secretive about their finances (81%)
- They didn’t seek professional financial advice (77%)
“Many millennials are at a point in their lives where they are hitting those big milestones – getting married, having kids and buying a house – big financial decisions,” says Leong. “It’s important for couples to talk openly about money and possibly seek financial advice from a professional to help make sure each partner is on the same page about their financial goals.”
Forever Over Fun
The survey also shines a light on those in relationships, with results indicating that committed couples have their own financial challenges. Interestingly:
- More than a quarter (28%) are keeping a financial secret from their partner, up from 8% from the 2020 report. Of those keeping a secret, 64% don’t plan to ever tell their partner.
- The survey shows that a secret purchase is the most kept (42%), followed by a secret bank account (29%)
Additionally, the survey shows that couples polled are choosing “forever” over “fun” when it comes to spending money. One in three couples surveyed believe buying a home is a higher priority than hosting a wedding. “Forever purchases” also seem to be more important, with surveyed couples saying they’ve spent more on engagement rings in 2021 – $2,309 compared to $1,800 in 2020.
Seeking Financial Advice
Consistent with the 2020 Love and Money survey is a greater need for financial advice, with surveyed couples saying that they are most in need of help when it comes to how to invest (20%), pay off debt (12%) and plan for retirement (12%). In contrast, millennial respondents are looking for advice on buying a home (19% vs. 9% of others surveyed).
“As Canadians continue navigating the impact of the last two years, having open and frequent discussions about money and aligning on shared financial goals remains key,” says Scott Belton, SVP, Strategy & Acquisition, TD. “At TD, our goal is to help all our customers achieve their financial goals – be they short or long-term, by providing personalized advice and resources that are tailored to their individual financial situation.”
TD offers several online tools available to assist its customers, including:
- TD Ready Advice hub has information and articles available on a variety of financial topics, from how to keep track of day-to-day expenses to how to navigate the first-time homebuying process.
- TD MySpend is a mobile app that can help track purchases and transactions made from personal TD Canadian dollar savings, checking and credit card accounts and automatically group them into categories, to help provide an understanding of how money is spent.
- 6,600+ TD advisors are available across the country to help provide personalized financial advice and help customers with their financial goals.
- TD Stories provides a range of informative articles about personal finances, budgeting and fraud prevention.
About TD Love and Money Survey
Research company MARU/Matchbox conducted the survey among a nationally representative sample of Canadian consumers focused on couples and money. The online fieldwork occurred between November 10, 2021 and November 18, 2021. A total of 1751 completes were gathered in Canada and have been weighted by age, gender and region to reflect the population. Margin of Error cannot be calculated as the audience comes from a non-probability sample, however the Margin of Error on a probability sample of this size would be +/- 2.3%.
About Maru Group
Maru Group is a world-leading customer experience and insights software and advisory services company. The company, which helps clients make informed decisions in near real-time by combining proprietary software, deep industry experience, and access to the best minds in research is found at Maru Group. Maru Public Opinion polling services and its gateway to these findings, and other survey releases, with the accompanying data tables can be found at Maru Group Polling.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group (“TD” or the “Bank”). TD is the fifth largest bank in North America by assets and serves more than 26 million customers in three key businesses operating in a number of locations in financial centres around the globe: Canadian Retail, including TD Canada Trust, TD Auto Finance Canada, TD Wealth (Canada), TD Direct Investing, and TD Insurance; U.S. Retail, including TD Bank, America’s Most Convenient Bank®, TD Auto Finance U.S., TD Wealth (U.S.), and an investment in The Charles Schwab Corporation; and Wholesale Banking, including TD Securities. TD also ranks among the world’s leading online financial services firms, with more than 15 million active online and mobile customers. TD had CDN$1.7 trillion in assets on October 31, 2021. The Toronto-Dominion Bank trades under the symbol “TD” on the Toronto and New York Stock Exchanges.