How people are coping with the cost of living in Canada: poll

Nearly half of Canadians are losing sleep over the increased cost of living but many are finding strategies to cope, a new poll has found.

The new poll from Ipsos, conducted on behalf of Simplii Financial, shows that 46 per cent of Canadians are losing sleep over the increased cost of living, and a similar percentage (47 per cent) are experiencing some strain on their personal relationships due to economic pressures.

But many people are finding ways to cope.

Here are strategies people are using to keep their cost of living under control:

• Dining out less (56 per cent)
• Shopping at multiple grocery stores (45 per cent)
• Opting for more budget-friendly food options (37 per cent)
• Delaying large purchases (28 per cent)
• Delaying moves (25 per cent)

“Canadians are making more prudent spending decisions, and it looks like they plan to do so for the foreseeable future,” says Jimmy Dinh, managing director and head of Simplii Financial. “While the Bank of Canada’s recent rate cuts should come as a relief for some, people are generally expecting things to get better in the long run.”

The Bank of Canada cut the key interest rate to 4.5 per cent in July. The reduction was the second consecutive cut after the central bank lowered its policy rate for the first time in June, bringing it down from five per cent to 4.75 per cent.

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The next rate announcement will be in September.

Nearly two-thirds of those polled said the Bank of Canada’s rate cut in June didn’t help advance their personal financial situation (63 per cent) and/or impact their overall happiness (64 per cent).

The poll also found that four times as many Canadians expect the economic conditions to get worse regarding inflation (worse: 43 per cent versus better: nine per cent), while three times as many Canadians anticipate that the national economy will fare worse (worse: 34 per cent versus better: 10 per cent).

But more than half of Canadians (52 per cent) expect the economic storm to pass and remain optimistic about their financial future, the poll found.

Simplii Financial offers the following tips to reduce costs:

• Shrinking recurring expenses—Recurring costs like insurance, loan interest, mobile bills, or even bank fees can be easy to forget but renegotiating them or going no-fee could save hundreds of dollars each year.
• Parking your car—The average annual cost of car ownership in Canada is in the tens of thousands of dollars so whether you’re able to get by with the occasional rental or other forms of transportation is worth some serious consideration.
• Focusing on income—At the end of the day, cutting costs will only get you so far. Career development, higher education, a side hustle, or even renting a room could increase earning potential and relieve the pressure on your wallet.

The Ipsos poll was conducted between June 21 and 25, on behalf of Simplii Financial. A sample of 1,150 Canadians aged 18 and over were interviewed online.

See the full report here.