The second annual Financial Fitness Survey released by Interac Association found that while Canadians have some concern about their financial health they remain pragmatic and overwhelmingly optimistic about their ability to achieve financial health in 2012. Most realize there are steps they can take to help them stay on track and in fact more than 80 per cent of those polled said they believed they likely would be able to achieve financial health in 2012.

In order to do so:

• 74 per cent said they intend to cut down on non-essentials
• 72 per cent said they intend to stick to a budget
• 62 per cent said they intend to use Interac Debit
• 55 per cent said they intend to better manage credit cards

Other interesting findings from the study found:

• Two thirds (66 per cent) of Canadians rate their personal financial health as good or very good (compared to 65 per cent in 2011); only 9 per cent rated it as poor or very poor;
• On a regional basis in 2012, those in the Atlantic provinces are less likely to view their personal financial health as very good or good (59 per cent, down significantly from 71 per cent in 2011) but remain optimistic about 2012, with 79 per cent saying that they are very or somewhat likely to achieve financial health in 2012;
• Albertans were the most positive about their financial health (73 per cent in 2012 compared to 63 per cent in 2011) and 91 per cent saying that they will be able to stay on track in 2012;
• A strong majority (81 per cent) of Canadians believe that they are very or somewhat likely to achieve financial health in 2012 (up from 77 per cent in 2011);
• Canadians are less worried about their financial health this year than they were last (29 per cent worrying almost all or a lot of the time in 2012 compared to 33 per cent in 2011); and
• Over 8 in 10 Canadians (83 per cent) believe that it will be an important priority to save money in 2012.

About the survey

The omnibus survey was conducted by The Strategic Counsel among a random representative sampling of 1000 adult Canadians. The sample was weighted to reflect the actual population by sex and age within region. The survey was conducted from January 5 through January 12, 2012.

Canadians are stereotyped as some of the world's most polite people, but that endearing trait may be holding us back when it comes to collecting money owed from friends, family and co-workers, according to an Interac network survey, conducted by The Strategic Counsel. The survey results are based among 530 respondents who have ever been owed less than $500 by a friend or family member at one time.

Although Canadians are also among the world's most frequent Internet users, the survey shows that we aren't taking advantage of online tools to simplify what is for some an awkward task. Fewer than three per cent of respondents use the Internet as their primary means of reminding someone about money owed. Do Canadians think it's awkward or rude to talk about owed money via the Internet? Do their manners need to evolve for the digital age? For the one in five respondents who said outstanding money owed has definitely or probably factored in a relationship gone sour, the answer may be a relief.
Canadian etiquette expert Louise Fox gives online money talk the green light. "Canadians do everything online - from shopping to banking and even dating," says Fox. Yet very few people are communicating online when it comes to reminding someone they owe them money.

"There's no reason to be shy about bringing conversations about owed money online and into the 21st century - it's perfectly polite," says Fox. "Whether in-person or online, the key to handling money matters politely involves being up front about repayment expectations in a way that makes others feel comfortable, so whether you choose to email a friendly reminder or use Interac e-Transfer to invite someone to pay you back online, asking for repayment via the Internet is absolutely fine."

Nearly two in five respondents (37 per cent) say they find it very uncomfortable or feel awkward asking a friend or family member to repay money owed, and the top reasons cited as causes of this discomfort suggest that our politeness is to blame. Most respondents either said they didn't want to pressure someone for repayment in case the person didn't have the money or they didn't want to give the impression that they didn't trust their friend, family member or co-worker to repay them.

While many Canadians are using and prefer the convenience and reliability of electronic methods of payment, three-quarters of Canadians are still using personal cheques. An Interac study reveals why Canadians are still pulling out the personal cheque books and what alternatives they have.

According to a national survey commissioned by Interac, and conducted by The Strategic Counsel, 75 per cent of Canadians are still using personal cheques, and while they recognize that cheque use is only somewhat convenient (49 per cent), they indicate that they believe it is the only option available in some circumstances (70 per cent).

The greatest proportion of cheque users indicated that they write approximately 6-20 cheques a year. Personal cheques are most commonly used to pay for: one-time projects or events, such as home renovations or weddings; services, such as babysitting or gardening; membership fees, such as gym and club memberships; and monetary gifts. Cheque users also indicated use of cheques for paying back someone they owe money to and sending money to a relative, such as a student away in university.

The study also looked at non-cheque users and reasons why they do not use this form of payment method. Non-cheque users indicated that cheques take too long and prefer faster alternatives (88 per cent), and also indicated that authorization and processing procedures prevent money from coming out of their bank accounts immediately (70 per cent).
A quarter of respondents indicated that they have used Interac e-Transfer, and reported that they use the service for many of the activities that cheque users identified. The top uses indicated included the following: sending money to a relative; paying back someone they owe money to; monetary gifts; and membership fees.

Who is Using Cheques - By Age
18-29 years - 61%
30-49 years - 77%
50+ years - 80%

Who is Using Cheques - By Region
Atlantic - 65%
Quebec - 69%
Ontario - 78%
Manitoba / Saskatchewan - 79%
Alberta - 77%
BC - 80%

How Many Cheques are Canadians Using Yearly?
Less than five cheques - 21%
6-20 cheques - 43%
21-35 cheques - 16%
36-50 cheques - 9%
More than 50 cheques - 11%

What are Canadians using Cheques for?
One-time projects or events e.g. home renovation or wedding - 46%
Payments to people who provide services e.g. babysitter or gardener - 45%
Membership fees e.g. gym membership, clubs or associations - 45%
Monetary gifts - 40%
Pay back someone they owe money to - 36%
Send money to relative in need e.g. child in university - 29%

What are Canadians using Interac e-Transfer for?
To send money to a relative in need e.g. child in university - 42%
To pay back someone they owe money to - 40%
Monetary gifts - 26%
Membership fees e.g. gym membership, clubs or associations - 25%
One-time projects or events e.g. home renovation or wedding - 19%
Payments to people who provide services e.g. babysitter or gardener - 18%

About the survey

1 The omnibus survey was conducted by The Strategic Counsel from September 18 to 23, 2009, among a representative sample of 1,000 Canadians, 18 years or older. According to the survey, the margin of error for a sample of 1000 is +/- 3.1 percentage points, 19 times out of 20.

2 Canadian Payments Association, www.cdnpay.ca/publications/statistics.asp.