The possibility of an economic recession | How do young Canadians prepare?

(Toronto) “I would be lying if I said the looming recession is not a concern,” says Praveen Kumar, who is currently building her own independent business.

Posted at 8:00 am

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Canadian Press

In a context of rising inflation and where the Bank of Canada is raising interest rates more aggressively than in previous tightening cycles, fears of a possible recession are growing. A stock market decline adds fuel to the fire, as market declines tend to happen before a recession occurs.

Mr. Kumar recently quit his job in the tech industry and although he was able to save eight months’ worth of living expenses in order to turn his career around, he is now budgeting more seriously, as he does not have a regular salary.

Photo by Vinith Sampath, The Canadian Press

Praveen Kumar

Camille Horrocks-Dennis is a documentary film student, and although she’s backed by county loans and grants, works two jobs and lives with her partner, the rising cost of living in Toronto makes her day-to-day life more difficult, and she considers the impact of this. Recession can happen to someone like her.

One thing is for sure, being in the arts industry there is no guaranteed job [dans mon domaine] He’s waiting for me after I graduate, so the recession is likely to hit me hard.

Camille Horrocks Denise, Documentary Student

CIBC economist Catherine Judge doesn’t sound a recession alarm yet, but she believes that if Canada falls into a recession, it could be in late 2022 or the first half of 2023. Dire as it was in 2008.

“The recession in 2008 was extraordinarily deep, and if we had a recession this time around, it probably wouldn’t be that bad,” she said. We expect the Bank of Canada to increase [les taux] Slightly less than the market expects, thus avoiding a total recession if the Fed [américaine] Also be careful about exaggerating the increases. »

Think of yourself as a business

However, personal finance experts say it is necessary to “resist the recession” for now.

For people in their twenties and early thirties, the COVID-19 pandemic has been the biggest global event they have faced as working adults, and it has forced many to examine their finances more carefully and even re-examine their career path, in a position to maintain their personal growth momentum.

Personal finance educator Kelly Kane believes that “preparing for the recession” has a lot to do with how young people shape their career paths.

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

If we always consider everyone as a customer, and always look for opportunities because we think like a business, that would be really very beneficial.

Kelly Kane, Personal Finance Educator

It also stresses the importance of expanding one’s skills – through certifications, courses, books and even following social media channels and trusted influencers – so that it becomes easier to realign oneself with the world. The job market, if necessary. She adds that continuing to communicate is just as important, if not more important.

Marketing specialist Ankit Mishra says he is “extremely concerned” about a possible recession and is honing his skills accordingly, learning French and researching industries that can be resilient in the event of an economic downturn. In his case, he explores how technology can improve life in cities and learns about sustainability in the mining industry.

When it comes to saving and spending amid rising inflation and recession fears,I Keehn believes it’s important to think carefully about whether certain activities or purchases will actually add value or ultimately damage the bank account. This is especially true as the world reopens and spending opportunities increase.

It also urges young people to carefully assess their financial capabilities and limits before investing in the stock market, even during the market rally we saw after the short-selling in March 2020 and into 2021 – a period that encouraged many young people to start in the hope of reaping significant gains.

She talks about her investing mistakes, which she made when she was younger, in particular, when she put money in the market before she could really deal with the implications, only to be forced to do so. Pull out when at a loss.

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