5 things to know about the latest GDP numbers + MORE Sep 1st

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OTTAWA – New figures from Statistics Canada show the economy contracted for two consecutive quarters in the first six months of 2015, which meets the technical definition of a recession.
Here are five things to know about the numbers. An economic rebound could be underway: Even even though the economy declined at annual pace of 0.5 per cent over the second quarter as a whole, it grew 0.5 per cent in June, the final month of the quarter. The June increase was the first one-month spurt in real gross domestic product to hit 0.5 per cent since it rose 0.63 per cent in July 2013.
A large chunk of second-quarter gains came on the backs of households: The data shows that household consumption climbed 0.6 per cent at a time when interest rates remained low. As a result, household savings dipped to 4.0 per cent from 5.2 per cent in the first quarter. Transport purchases — with help from 2…

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What worries aging Canadians as they prepare for long-term care?
A BMO Wealth Institute study finds that the greatest health-care-related aging concerns include:

losing the ability to live independently (40%);
not having enough money to pay for adequate health care (17%); and
not being able to afford to remain in their own homes throughout their lifetimes (15%)

Three quarters (73%) said they plan to use their own savings to fund any future long-term care needs. Other funding options include:

government assistance (45%);
Accessing home equity via a reverse mortgage (20%); and
long-term care insurance (19%).

The study also examined Canadians’ views on where they would prefer to receive long-term care, finding that the majority (56%) would prefer to receive it in their own home rather than in an assisted-living facility (20%). Thirteen percent would like to receive long-term care in a retirement or nursing home…

How much debt danger are Canadian students in? As young adults across the country head back to campus, the issue of students’ cost of living – and the loans they’ll require – is a national discussion.
It’s argued that steep tuition sets young adults up for decades of debt repayment – up to 14 years for the average grad, according to our 2012 Cost of the Future study – and that millennials are effectively delayed from reaching the financial milestones enjoyed by previous generations.
Now, it’s reported that consumer debt levels are a growing concern for this group. A recent piece in the CBC states credit card debt has spiked among students over the past five to 10 years, heaping thousands in interest on top of already massive student loans. And we’ve all heard the cautionary tales of students who sign up for cards marketed directly to them, right on campus.
However, this conflicts with reports that students are eschewing credit cards altogether – a recent American study commissioned by Bankrate and compiled by Princeton Survey Research Associates International found 63 per cent of millennials don’t carry a credit card at all, while another survey found pre-paid credit card use is growing in prevalence among students…

Canadians on average are socking away more money for potential financial emergencies than in the past, but a BMO survey finds that almost a quarter are still living paycheque to paycheque.
Further, Canadians on average have $41,694 in emergency savings, up from an average of $35,237 in 2014.
However, 24% of respondents say they had hardly anything set aside and more than half (56%), reported having less than $10,000 in emergency funds.
Why you don’t need an emergency fund »
Christine Canning, head of everyday banking at BMO, describes the ideal emergency savings fund as one that can replace three to six months of income. She adds an emergency fund represents more than just a cushion, saying it can provide peace of mind and help reduce the risk of increased debt if a financial emergency does come along.
By region, the survey found that those in Atlantic Canada had the lowest average amount of emergency funds set aside at $20,152, with only 8% having more than $50,000 available and 27% with between $10,000 and $49,900…