Possibility of recession | How do young Canadians prepare?

(Toronto) “I’d be lying if I said a looming recession is nothing to worry about,” said Braveen Kumar, who is currently working to build her own independent business.

Posted at 8:00 am

Adena Ali
The Canadian Press

Fears of a possible recession are growing on the back of rising inflation and the Bank of Canada raising interest rates more aggressively than in its previous tightening cycles. A falling stock market adds fuel to the fire, as market declines typically occur before a recession hits.

Mr. Kumar recently quit his job in the tech industry and while he managed to save eight months’ living expenses to make a career change, he budgets much more carefully now that he doesn’t have a regular salary.

Photo Vineeth Sampath, The Canadian Press

Braveen Kumar

Camille Horrocks-Denis is a documentary film student, and although supported by provincial loans and scholarships, working two jobs and living with her partner, the high cost of living in Toronto complicates her daily life and she reflects on the impact a recession could hit someone like her.

One thing is for sure, there is no guaranteed job in the art industry [dans mon domaine] awaits me after graduation, so a recession could possibly hit me hard.

Camille Horrocks-Denis, documentary film student

CIBC economist Katherine Judge isn’t sounding a recession alert just yet, but she thinks it could be in late 2022 or the first half of 2023 when Canada enters a recession. However, she does not expect the situation to be as dire as it was in 2008.

“The 2008 recession was unusually deep and if we do have a recession this time, it probably won’t be that bad,” she said. We assume that the Bank of Canada will gain [les taux] slightly less than the market expected, avoiding an outright recession for the Federal Reserve [américaine] is also wary of exaggerated increases. »

Think of yourself as a company

Nonetheless, personal finance experts say staying “recession-proof” is imperative right now.

For people in their 20s and early 30s, the COVID-19 pandemic has been the biggest global event they’ve faced as working adults, and it’s forced many of them to take a closer look at their finances and even reconsider the career path they’re in able to maintain the momentum of their personal growth.

Kelley Keehn, personal finance educator, believes “recession preparedness” is mostly about how young adults shape their career paths.

She believes that people should think of themselves as a company.

If we always look at everyone as a customer and always look for opportunities because we think like a company, it will really be very useful.

Kelley Keehn, Personal Finance Educator

She also emphasizes the importance of expanding one’s skills – through certifications, courses, books and even following trusted social media channels and influencers – so that it becomes easier to realign with the job market if necessary. Just as important, if not more so, is to keep networking, she adds.

Marketing expert Ankit Mishra says he is “quite worried” about a potential recession and is honing his skills accordingly, learning French and researching industries that might be resilient in an economic downturn. In his case, he studies how technology could improve life in cities and learns about sustainability in the mining industry.

On saving and spending amid high inflation and recession worries, Ms.me Keehn believes it’s important to carefully consider whether certain activities or purchases actually add value or end up draining the bank account. This is especially true as the world opens up again and spending opportunities increase.

She also urges young people to carefully consider their financial options and limitations before investing in the stock market, even during the market rallies we have seen following the March 2020 sell-off and into 2021 – a time many young Encouraged people to start doing it hoping for big wins.

She opens up about her own investing mistakes she made when she was much younger, particularly investing money in the market before she could really deal with the repercussions, only to be forced to do so.

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