Survey finds most households feel less secure as inflation and essential costs alter money decisions
Nearly all Canadians say higher prices and economic volatility are affecting their finances, prompting many to rein in spending, postpone purchases, and tap savings to cover everyday costs, according to a new survey from Harris & Partners.
The study, which polled 2,664 adults across Canada, found that 95.2% of respondents said rising expenses for necessities such as groceries, housing, and utilities have recently hurt their financial position. Another 94.2% said inflation and interest rates are influencing their financial planning, while 93.6% reported that increasing day-to-day costs are putting added strain on their budgets.
The survey also showed that 91.6% have altered the way they handle their money over the past six months as economic conditions have shifted.
Among the most common responses to financial pressure, 49.0% said they have reduced spending, 22.4% have delayed planned purchases, and 15.2% have drawn on savings to make ends meet. Another 10.0% said they are turning to credit more often.
“These findings paint a very clear picture, financial pressure is no longer temporary for many Canadians,” says Joshua Harris, CEO of Harris & Partners. “People are adjusting their lives in real time because the cost of everyday living continues to rise faster than many incomes can keep up.”
The findings point to a growing sense of financial fragility. According to the survey, 91.0% of respondents said their finances could shift quickly because of circumstances beyond their control, and 85.4% said financial changes are having a greater effect on them now than they were a year ago.
“Canadians are feeling less financially secure than they did a year ago,” Harris explains. “Even individuals who were previously comfortable are now rethinking spending habits, postponing purchases, and worrying about how quickly circumstances can change.”
The firm said the biggest sources of financial stress continue to be core household costs, including food, shelter, transportation, and utilities.
While many consumers are trimming discretionary expenses, Harris cautioned that households leaning on savings or debt to cover regular bills may be exposing themselves to more serious problems over time.
“We’re seeing more people forced to make difficult choices simply to stay on top of monthly expenses,” Harris says. “When households begin relying on savings or credit to manage basic costs, it can quickly lead to long-term financial strain.”
Harris & Partners said the survey underscores the need for practical financial education and earlier access to support for individuals facing mounting debt and financial stress.
“There’s a strong need for open conversations around financial stress and debt,” Harris adds. “Many people wait until things become overwhelming before seeking help, but there are options available much earlier than most realize.”
The firm is urging Canadians experiencing financial challenges to seek professional guidance before their debt burden becomes harder to manage.
