Despite the COVID-19 pandemic, a significant amount of young people in Canada actually increased their net worth in 2020.
A new report from Statistics Canada has revealed the impacts that the global pandemic and related supports had on Canadians’ finances.
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Their research found “extraordinary changes” in people’s economic well-being, with some young people actually receiving more money during the COVID-19 than pre-pandemic.
The data explained that in the first three quarters of 2020, disposable income for the lowest-income households increased by 36.8%.
“At the same time, the youngest households recorded the largest gain in their net worth (+9.8%),” reads the report.
It explains that while households with a main earner aged under 35 held “the least wealth” of any other age group last year, with an average of $220,200, they increased their net worth the most.
It explains that the changes were driven by unprecedented circumstances, particularly noting that “the value of government COVID-19 support measures exceeded losses in wages and salaries.”
It was also led by “gains in value in the acquisition of real estate and consumer goods—such as cars, appliances and electronics,” which ultimately outpaced growth in debt obligations.
In addition, lockdown measures and restrictions on non-essential activities capped spending, allowing young people to increase their savings by an "unprecedented" amount, too.
