While building a nest egg for emergencies is important to Canadians of all ages, the necessity of saving for a rainy day is most keenly felt by the younger generation (18-34) and they are just as likely to have a plan in place to achieve their savings goals as those in older age brackets, according to a recent Bank of Nova Scotia study conducted by Harris/Decima to assess the saving patterns of Canadians.

Forty-nine per cent of young adult Canadians cited having a financial safety net as their top reason for saving money compared to 40% of 35-44 year olds and 42% of those in the 45-54 and 55+ age groups. With respect to their savings habits, 70% of those aged 18-34 said they have a plan in place to achieve their savings goals, which is on par with the national average (68%).

Furthermore, similar to those in the 35-44 and 45-54 age ranges, a majority of younger adults (60%) indicate they are socking away savings on a bi-weekly or monthly basis. Those in the 55+ group are more inclined to save on a monthly basis (46%) or less often (29%).

“It is great to see that Canadians of all ages understand the importance of saving for the proverbial rainy day and it is particularly encouraging that the younger generation appears to have strong saving habits in place to meet their goals,” says Anna Clarkson, Scotiabank branch manager, Calgary.

The Scotiabank study also found that younger Canadians are the most prudent in financing their major purchases, with 38% indicating they would prefer to save up and then pay for the whole thing compared to 28% of those aged 35-44 and 27% in the 45-54 and 55+ age groups.

While Canadians of all ages are equally likely to admit they are saving less than they were six months ago (23%), the younger generation are more likely to say they have started saving more (29%) compared to those 35 years and older (21%).