A new survey conducted by CPA Canada and BDO Debt Solutions reveals that economic uncertainty is prompting 83% of Canadians to adjust their financial strategies, with one-third (34%) reporting they are worse off financially compared to a year ago.
Inflation and Cost of Living Top Concerns
According to the survey, 76% of Canadians acknowledge that the broader economic climate is affecting their financial well-being. Four in ten (40%) identify inflation and rising living costs as their primary financial worries.
David-Alexandre Brassard, Chief Economist at CPA Canada, describes the current economic landscape as one of “weaponized uncertainty,” with global trade tensions and potential U.S. tariffs exacerbating financial anxieties. “Personal finance doesn’t exist in a vacuum,” says Brassard. “As consumer confidence declines and spending slows, Canada could see sluggish economic growth.”
Generational Differences in Financial Outlook
The survey highlights a clear generational divide in financial concerns. Older Canadians (55+) are more affected by political instability, with 14% citing it as a stress factor. Meanwhile, only 4% of young adults (18-34) share the same concern. Despite the challenging economic climate, younger Canadians remain more optimistic about their financial future than their older counterparts.
Li Zhang, financial literacy leader at CPA Canada, explains: “The financial caution we’re seeing isn’t just about inflation—it’s about uncertainty.” Many Canadians are preparing for worst-case scenarios, making changes to their financial plans to protect themselves against potential downturns.
Canadians Cutting Expenses but Overlooking Debt Repayment
With inflation straining household budgets, 66% of Canadians plan to cut expenses in response to rising costs. However, only 24% intend to prioritize paying down debt.
Nancy Snedden, Licensed Insolvency Trustee and President of BDO Debt Solutions, warns that neglecting debt repayment could lead to long-term financial struggles.
“Cutting spending is a positive step, but without a focus on debt repayment, financial stress will continue to build,” says Snedden. “Many Canadians are struggling with credit card debt, and without a structured plan to pay it off, they risk larger financial problems in the future.”
Steps Canadians Can Take to Navigate Economic Uncertainty
Financial experts recommend several proactive steps Canadians can take to stabilize their finances amid economic uncertainty:
- Create a Budget: Track income and expenses to identify areas to cut back.
- Prioritize Debt Repayment: Focus on high-interest debts like credit cards to reduce financial strain.
- Build an Emergency Fund: Save for unexpected expenses to avoid reliance on credit.
- Seek Professional Advice: Consult financial advisors or credit counselors for personalized guidance.
Survey Methodology
The 2025 Economic Uncertainty OMNIbus Survey was conducted by Leger from February 7 to February 10, 2025, polling 1,590 randomly selected Canadians aged 18 and over through an online panel.
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