An increasing number of Canadians are cutting back on spending as prices rise across the country in many different areas.
According to Angus Reid Institute, four-in-five Canadians say they have cut spending in recent months by either trimming their discretionary budgets, delaying a major purchase, driving less and scaling back travel or deferring saving for the future. This represents an increase from the three-quarters (74 per cent) who said so in February.
“A financial temperature check of Canadians finds many sweltering in the heat of inflation,” said the Institute. Half (52 per cent) say they couldn’t manage a sudden expense of more than $1,000. For two-in-five (38 per cent), a surprise bonus of $5,000 would be used to alleviate the pressure of debt. For one-in-10, it would immediately be put towards daily expenses.
Different parts of the country feel more financial stress
Some parts of the country seem to be feeling more financial pain than others. Those in Saskatchewan (58 per cent) and Atlantic Canada (50 per cent) are much more likely than those in other parts of the country to use a sudden gift of $5,000 towards paying off debt. As well, people in those provinces – and Alberta – are more likely than others elsewhere to say they have been cutting back spending in recent months.
The one-in-five (22 per cent) Canadians who say they are never really stressed about money are in the minority. Three-quarters (76 per cent) say the opposite.
In addition to those cutting back at stores, about one-quarter (27 per cent) of Canadians say they have trimmed back donations and charitable giving as they have adjusted their budget recently.
