Saver or Spender: Are You Going to Put More Money in the Bank or the Economy?

SavingSome of next week’s budget details were leaked and it seems that the conservative government is going to be in the spender category over the next couple of years.  I think that means they are planning on spending more of my money.

It seems that Canadians in general were spenders in 2007.  They spend 3.3% more than in the previous year.  Statistics Canada suggested that we were happily doing our part to keep the economy going.

With the doom and gloom that is presented in the paper these days, a report by CIBC World Markets, we might be changing our tune. “The urge to save more and borrow less to repair shattered household balance sheets will be the key in the economic hangover from the huge wealth loss associated with a steep drop in global equity and real estate valuations,” say Avery Shenfield and Benjamin Tal.

All the television commercials about tax-free savings accounts makes me think that the banks are getting ready for more savings too.