Money Talks: Emphasizing Wealth in Household Finances
AbstractRecognizing the importance of household wealth in the overall financial wellbeing of Canadians and the relative scarcity of the public policy dialogue that is centered unequivocally on wealth, this paper aims to critically examine households’ wealth position, their attitudes to the accumulation of wealth and practices utilized for that purpose. Measured as the difference between the value of household assets and liabilities as it transpires at a given point in time, an examination of the outcomes of household wealth accumulation is performed through assessing the aggregate levels of wealth, the quality of the household wealth position, and exploration of households’ views on the importance and purpose of wealth accumulation, and strategies utilized for that. Results of the analysis show that households’ determination towards wealth accumulation does not appear to be strong as only few engage in developing wealth accumulation strategies, and monitoring the dollar value of their wealth and economic factors that may affect it. Reluctance of households to engage in active savings is also evident. Moreover, high levels of household debt elevate household exposure to risks whereas the high reliance on the appreciation of assets for wealth accumulation increases households’ vulnerabilities.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Certified General Accountants Association of Canada in its series Working Papers with number 130502.
Length: 86 pages
Date of creation: May 2013
Date of revision:
Contact details of provider:
Postal: Suite 100, 4200 North Fraser Way, Burnaby, British Columbia V5J 5K7, Canada
Web page: http://www.cga-canada.org
More information through EDIRC
wealth; wealth accumulation; household finances; household savings; household debt; household assets;
Find related papers by JEL classification:
- E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
- D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
- I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lise Pichette & Dominique Tremblay, 2003.
"Are Wealth Effects Important for Canada?,"
03-30, Bank of Canada.
- Altman, Morris, 2012. "Behavioural economics perspectives: Implications for policy and financial literacy," Working Paper Series 2195, Victoria University of Wellington, School of Economics and Finance.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elena Simonova).
If references are entirely missing, you can add them using this form.