The results of On The Bay’s first financial survey are insightful and in some instances alarming. We’re doing OK on the whole, but the numbers tell a deeper story.
by Trent Gow // Illustrations by Justin Broadbent
Residents of Southern Georgian Bay (SGB) have revealed some valuable insights into their current financial circumstances with their responses to On The Bay’s Financial Survey last fall. We asked whether these trying financial times have affected their behaviour—and their responses are both reassuring and concerning. Most respondents are still doing quite nicely, thank you. But the devil’s in the disparate details. The combination of heightened uncertainty, high mortgage rates and rents, ever-rising food prices and other living costs are taking a distinct but disproportionate toll with many manifestations.
Wide-ranging responses
The responses to our financial survey are spread nicely across a wide range of SGB communities, full-time and seasonal residents, six generations, gender, housing situation, and work status. Clearly the findings are not statistically rigorous but nonetheless they are insightful and in some instances alarming, and they revealed that much depends on your age and stage.
Women, empowered and engaged
Something that leaps out from the survey answers is that almost two-thirds of responses are from women, many with economic clout. This gender imbalance should not come as a surprise. Paul Chapman, a wealth advisor with RBC Wealth Management in Collingwood, notes that “women are often the stewards of family wealth and they own and run almost half of businesses in Canada.” On the global stage, women’s economic power is exploding into public consciousness, particularly last year through the triple-punch of the Barbie movie, Taylor Swift’s Eras Tour and Beyoncé’s Renaissance Tour—three women-led megahits that broke earning records.
The numbers paint a picture of a typical woman respondent who is involved and empowered, in control of her financial future and actively engaged in her community. She is confident in her financial future and continues to adhere to her solid financial plan which she developed with a financial advisor. She spends and invests conservatively, especially in times of uncertainty.
Our typical responder resides with her spouse but no children in a home that they own mortgage-free; her household income is $75,000 to $150,000; her net worth remains solid; her retirement plan is not at risk; and she’s well-prepared for a rainy day. Even though she is well-protected and insulated from adversity, she has prudently reduced discretionary spending on restaurant meals, movies and vacations. As well, like many other SGB residents, she is cutting back on food quality or nutrition to cope with higher food prices. This widespread adjustment to punishing food prices is dismaying, particularly for those less fortunate, as the survey also documents.
70% are more frugal because of trying economic conditions
60% are sacrificing nutrition and quality to offset high food prices
One in six report added stress has worsened their mental health
In excess of 13,000 SGB residents may be at economic risk
A significant 15% of responders are struggling with a plethora of challenges
Beneath the veneer of “average”
It’s gratifying to learn that “on average” SGB residents are still managing well in these financially trying times. But a flaw of relying on averages in statistical analysis is that they paint a superficial veneer that hides as much as it reveals. A deeper probe reveals that a solid 15 percent of respondents are struggling with some or all of the daunting consequences of increased financial turbulence. These include: difficulty in meeting financial commitments; living paycheck to paycheck; prioritizing/deferring payments for essential expenses; drawing down savings; destroying access to credit; taking on a second or third job; and depriving their kids of extracurriculars. Extrapolating this finding to the full 2024 SGB population of about 90,000 (Clearview, Collingwood, Wasaga Beach, The Blue Mountains and Meaford) suggests that in the range of 13,000 residents are at economic risk. That’s a problem!
Paramount in this litany of troubling impacts is the complex, interrelated dilemma of finding, maintaining and retaining attainable/affordable housing which is evident across the whole response spectrum.
Mental health spillover
These survey results are not just sterile numbers to be parsed and ignored. Along with pockets of sizable economic deprivation, they point to heightened mental health consequences for some SGB residents. Our survey suggests that one in six respondents are experiencing added anxiety and depression, a finding that’s consistent with, and probably exacerbates, the observation of the Centre for Addiction and Mental Health that in any given year one in five Canadians—particularly young Canadians—experience a mental illness.
41.7% of young respondents despair of ever owning a home
4.9% may be forced to sell their homes if interest rates go much higher
28.6% are considering moving from SGB
5.4% are struggling with home insecurity verging on homelessness
Almost 60% cannot afford to buy a new car
80% of our few student respondents were not able to find suitable, affordable student housing and half of them therefore decided to limit or postpone their education
Boomers are OK
Parameters related to access to housing, discretionary income and wealth, among others, suggest that intergenerational inequity persists and may have increased in our region. But even though they continue to prosper disproportionately, many boomers don’t seem to get it. Seven in 10 respondents indicated that every generation makes their own future and benefits accordingly.
A professional’s perspective
To validate some of our survey’s financial messages, we consulted with wealth advisor Chapman. He agrees with the general sentiment of our survey analysis, noting in particular that the findings highlight the value in stability around one’s financial situation, outlook and structuring/planning. “That’s a result that we financial advisors seek to achieve for our clients,” he says.
You’re glad we asked
OTB is delighted that 92 percent of those readers who took the survey considered it to be important and thorough. We hope you are equally interested in the messages we have distilled.
