Despite rising living costs, Canadians remain resilient by adopting savvy spending and saving tactics
A recent Ipsos poll conducted for Simplii Financial reveals that nearly half of Canadians (46 percent) are losing sleep due to the increasing cost of living.
Additionally, 47 percent report that economic pressures are straining their personal relationships. Despite these challenges, Canadians are proving resilient, particularly in managing essential expenses like food and housing.
The survey highlights various strategies Canadians are adopting to cope with rising costs. A majority are dining out less (56 percent), while others are shopping at multiple grocery stores to find the best deals (45 percent).
Some are choosing more budget-friendly food options (37 percent), delaying large purchases (28 percent), and postponing planned moves (25 percent).
Jimmy Dinh, managing director and head of Simplii Financial, noted, “Canadians are making more prudent spending decisions, and it looks like they plan to do so for the foreseeable future.”
He added that while the Bank of Canada’s recent rate cuts might provide some relief, many Canadians are looking toward long-term improvement in economic conditions.
Despite this, the poll indicates that nearly two-thirds of Canadians (63 percent) found the Bank of Canada's June rate cut unhelpful for their personal finances, and 64 percent felt it did not improve their overall happiness.
The outlook on inflation is also concerning, with 43 percent of respondents expecting it to worsen, compared to only 9 percent who foresee improvement. Similarly, 34 percent of Canadians anticipate the national economy will decline, while just 10 percent expect better conditions.
Nonetheless, more than half of Canadians (52 percent) remain optimistic about their financial future, believing that the current economic challenges will pass, leading to fewer sleepless nights and a brighter outlook.
Simplii Financial offers several tips for managing the rising cost of living:
- Reduce recurring expenses: By renegotiating insurance, loan interest, mobile bills, or switching to no-fee services, Canadians could save significant amounts annually.
- Consider alternative transportation: With the high cost of car ownership in Canada, opting for occasional rentals or other transportation methods could be a cost-effective solution.
- Increase income: Focusing on career development, pursuing higher education, starting a side hustle, or renting out a room are ways to boost earning potential and ease financial strain.
