45% of Canadians confess that rising prices impact their day-to-day lives
Toronto, ON
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August 28, 2024 07:00 AM Eastern Daylight Time
by Nicholas Sokic
According to Statistics Canada data, 45% of Canadians reported that rising prices were greatly affecting their ability to meet day-to-day expenses in the first few months of 2024.
Turns out the percentage of Canadians feeling the pinch rose in the last few years, from 33% of Canadians feeling the pinch in 2022 to 45% in 2024.
“This extended period of financial strain can also negatively impact mental health," explain the report authors. For instance, when asked about financial-related stress in spring 2024, more than a third (35%) of Canadians described most days as "quite a bit" or "extremely stressful due to financial issues."
Age cohort most impacted by rising prices?
Canada’s rising prices did not affect all age cohorts equally.
Nearly 6 in 10 of those in the lowest income quintile and about half of those in the second and third income quintiles report that rising prices greatly affected their ability to meet day-to-day expenses. When compared to those in the highest income quintile, only 27% reported experiencing financial stress.
Stress of paying bills has mental health impact
While paying bills was impacted, so was mental health.
Almost half those in the lowest income quintile reported that on most days there were a bit or very stressed due to financial concerns. Compare this to only 25% of people in the highest income quintile who report stress over paying bills.
Age isn't the only factor
Other groups facing tougher financial situations include include younger people, households with children and disabled family members.
More than half (55%) of Canadians between the ages of 25 to 44 reported that rising prices were greatly affecting their ability to meet day-to-day expenses. By comparison, only 28% of seniors reported having this difficulty.
The figures were similar for individuals with a disability, with 57% reporting that rising prices were greatly affecting their ability to meet day-to-day expenses, compared with 43% otherwise.
Financial difficulties and lower quality of life
When you’re not worrying about the next bill or where your paycheck is going to come from, it makes perfect sense that you’d be more hopeful for the future. Of those who didn’t report having daily financial stress, 73% had a hopeful view of the future compared with 35% of those who found most days quite a bit or extremely stressful due to financial concerns. To put a fine point on the impact of finances on mental health, only 17% of Canadians who describe most days as stressful due to financial issues report a high satisfaction in life; compare this to 70% of Canadians who report that on most days they are not stressed about finances.
Younger generation is most pessimistic about becoming a homeowner
The biggest concern for many Canadians is the ongoing housing crisis. About 38% of Canadians report being "very concerned" with their ability to afford housing or rent because of rising home prices, compared with only 30% in the spring of 2022.
Over half (56%) of those aged 15 to 34 reported being very concerned about housing affordability due to rising housing prices. Concern with housing affordability decreased with age, with only 19% of Canadians aged 65 years and older having the same concern.
How to meet basic needs
Despite the increase in the number of Canadians feeling the stress of increased costs, the decision to rely on external help hasn't changed much. When asked whether or not the rise in living costs would prompt a reliance on community organizations for food or meals, almost 1 in 4 Canadians (23%) confessed that this would be their go-to solution throughout 2024. Of these, 8% said is was a "very" likely option while 15% said it was somewhat likely. In 2022, only 1 in 5 Canadians (20%) reported relying on food banks and community groups for food and meals.
Survey methodology
The data was part of the Statistics Canada recent Canadian Social Survey with respondent input collected between April 19 to June 3, 2024.
— with files from Romana King
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