Why have Canadians begun to save money and live more modestly?
A survey showed that Canadians spent far less money in 2022 than they did last year. What are they saving on this year?
The country's economic situation is preventing Canadians from travelling and enjoying life as much as they did a few years ago. While young people are more optimistic, those in their 50s are sceptical about improvements in the coming year. Projected inflation is even more worrisome.
Among the categories in which expenditures had to be cut were the following:
- Vacation. Among 1,526 Canadians, a majority confirmed that they spend less on vacations than they did last year. 11% spent more, 26% gave the same amount as in 2021, and the rest chose budget options.
- Food. In the survey, many respondents noted how food has become more expensive, so they try to spend less. Of the total number, 26% savings on groceries.
- Entertainment. 35% of residents crossed entertainment off the top list of necessary needs. But some spend more — 7%. Since the survey was conducted among different age categories, young people are not as concerned about tomorrow, so they remember to have more fun.
- Gifts. Canadians will spend Christmas and New Year's more modestly. 33% confirmed that they saved money in this category.
When asked to name a reason that makes them save money, 44% chose higher inflation, 31% chose recession, and 15% chose weather events related to climate change.
If we compare it with the summer surveys, 80% of Canadians have cut back on spending in various categories. But it is not the fact of saving that is surprising, but the financial literacy and system built. People plan their budgets very carefully, knowing exactly "what and how much they spend, how much they put aside, and where they save." This helps them plan for a secure future.
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