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Canadians are making tough choices to manage the high cost of living, with half (51 per cent) reportedly changing their spending behaviour to make ends meet and save money, according to a survey by insolvency practice MNP Ltd.
Under the burden of inflation, Canadians have been finding ways to share expenses, with nearly a third saying they have turned to bill-splitting strategies. These include carpooling, buying in bulk, sharing subscriptions and childcare, and cohabiting with others.
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MNP’s quarterly consumer debt index, released Wednesday, also found that 28 per cent of Canadians have even resorted to eating less to save money.
“These measures reflect the harsh reality of soaring living costs, compelling Canadians to find new ways to save,” said MNP’s president, Grant Bazian. He added that it is “particularly concerning” how some are cutting back on food to make ends meet.
The report further highlighted that Canadians are cutting back on discretionary spending. Fifty-one per cent say they have tried to save money by grocery shopping more strategically, while 48 per cent are avoiding impulse purchases. Forty-four per cent say they have stopped going to restaurants or ordering take-out.
Such cost-saving measures are more common among Canadians between the ages 18 and 34, and those living in British Columbia and Alberta, the report said.
More than one in ten, or 13 per cent, indicate they are saving money by living with friends, partners or family members, or by seeking out additional roommates or co-living spaces. Co-habitation is also more prevalent among younger Canadians, British Columbians and those with lower incomes.
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“Strategies like sharing expenses and co-living arrangements showcase not only resourcefulness but also the financial pressure many are facing,” Bazian said.
There is some indication that the prudent cost-cutting efforts may be creating breathing room in people’s budgets. Canadians reported some relief and improvements in their financial situation, MNP said, thanks to the resulting savings and the recent decline in interest rates.
The report said Canadians are generally feeling more positive about their personal finances. Slightly more than 40 per cent say they are $200 or less away from financial insolvency each month, which MNP said is the the lowest recorded proportion since September 2018.
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The survey, conducted by Ipsos on behalf of MNP, compiled data from 2,000 Canadians aged 18 years and over between Sept. 5 and 11.
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