Mr. Sal Guatieri reports

BMO SURVEY: PERSONAL FINANCE CONCERNS ROSE SIGNIFICANTLY BETWEEN MARCH TO APRIL 2025

A special report from Bank of Montreal's BMO Real Financial Progress Index reveals Canadians' concerns about their personal finances have surged amid increased economic uncertainty and market volatility.

The survey explored changes in Canadians' concerns about their finances and current economic conditions between March and April, 2025, and found:

• Cost-of-living considerations -- A total of 78 per cent reported growing concerns about the cost of living in April, a 17-point increase from 61 per cent in March.
• Inflation concerns intensify -- Over three-quarters (76 per cent) say their concerns about inflation have increased, a 16-point increase from 60 per cent.
• Temperature on tariffs -- Concerns about the impact of United States tariffs increased from 65 per cent to 74 per cent.
• Rising recession risks -- Canadians' concerns about the prospect of economic recession increased from 60 per cent to 74 per cent.
• Pulse on personal finances -- Nearly three in five (58 per cent) say they are more concerned about their financial situation, a 16-point increase from the 42 per cent in March.

In addition, nearly one-quarter (24 per cent) reported in April they are increasingly concerned about the prospect of losing their job.

"Canadian consumer confidence recently plummeted to the lowest depths in at least six decades on fear that the trade war will cost people their jobs and undermine their financial security. However, sentiment improved modestly in April amid a partial de-escalation of the trade war. A more recent recovery in equity markets should support confidence further in May," said Sal Guatieri, senior economist, BMO. "While BMO Economics is concerned about the economic impact of tariffs, we are less worried about the inflation outlook, as retaliatory tariffs on imports from the U.S. have been restrained. CPI [Consumer Price Index] inflation will likely hold close to the Bank of Canada's 2-per-cent target this year, paving the way for some further reductions in policy rates."

"Many Canadians and their families are understandably more concerned about their finances and are taking pro-active steps to protect their financial future," said Anthony Tintinalli, head, specialized sales, BMO. "At BMO, our team of experts are available to help Canadians build a personalized financial plan and adjust these plans as circumstances change or new goals emerge. With planning and a disciplined approach to spending, Canadians will be empowered to navigate the challenging environment, achieve their financial goals and make real financial progress with confidence."

"While navigating markets has been difficult amid the recent uncertainty, we remain committed to well-balanced and well-diversified portfolios," said Brent Joyce, chief investment strategist, BMO Private Investment Council. "Uncertain times can also be a good time to reassess risk tolerance, but decisions should be made with a long outlook in mind. A trusted adviser can help people determine their best path forward."

The BMO April survey also found boomers are most concerned about the cost of living (84 per cent), tariffs (83 per cent), the prospect of an economic recession (82 per cent) and inflation (80 per cent), while generation Z are the most concerned about the prospect of losing their jobs (37 per cent).

BMO helps Canadians make real financial progress

BMO offers tips and resources to help Canadians stay on track toward their financial goals and make real financial progress during times of uncertainty:

• Start planning early -- Outlining short- and long-term financial objectives and goals helps determine the appropriate investing and savings solutions to incorporate in a financial plan.
• Practice discipline -- Manage spending, review budgets and include any automatic contributions through preauthorized contributions to savings plans as an expense. Monitoring spending with a monthly budget will allow flexibility to suspend or decrease the spending amount in the continuous savings plan when needed or increase the amount when a budget allows for it.
• Build an emergency fund -- Aim to save at least three to six months worth of living expenses to help cover unexpected costs or loss of income.
• Diversify investments -- Spread investments across different asset classes, sectors and geographies to reduce risk.
• Stress-testing strategies -- Consider stress testing financial plans and investment strategies to help plan for economic, market and personal changes that can affect the progress toward financial goals, such as saving for retirement and buying a home.
• Keep calm and stay the course -- During periods of market volatility, avoid panic selling and maintain a long-term perspective on investments in order to benefit from the power of compound growth.
• Seek professional advice -- Do not wait to seek help until a time of crisis. Working with a professional expert and meeting with them regularly can help Canadians and their loved ones create and maintain a financial plan that reflects their financial goals, sources of income and cash flow, risk appetite, and time horizons -- and adjust these plans new goals emerge or circumstances change.

About Bank of Montreal

BMO is the seventh-largest bank in North America by assets, with total assets of $1.4-trillion as of April 30, 2025. Serving customers for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets, and investment banking products and services to 13 million customers across Canada, the United States, and in select markets globally. Driven by a single purpose -- to boldly grow the good in business and life -- BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future and inclusive society.