Canadians plan to reduce their spending in 2025: report
Posted December 17, 2024 10:03 am.
Nearly a third of Canadians plan to reduce their spending in 2025 due to the rising cost of living, according to a new BMO report.
According to BMO’s “Better Money Index,” nearly half (44 per cent) of respondents said that the rising cost of living will impact their New Year’s financial resolutions – which is up by four per cent from 2023.
Some of the major financial concerns from respondents included the cost of living (54 per cent), inflation (50 per cent) and a potential economic recession (42 per cent).
However, despite the ongoing concerns, most respondents said they are improving their finances (87 per cent) and are optimistic about their financial future in the upcoming year (72 per cent).
Also, more than one in five Canadians (21 per cent) plan to set financial goals or a budget for 2025.
“The new year marks a fresh start for reflection and improvement, and we want to empower Canadians to build good habits and improve their finances by encouraging them to get ahead of the game in setting their financial goals,” said BMO Head of Specialty Sales Anthony (Tony).
According to the data, one third (33 per cent) of Canadians currently have a financial plan in place but 59 per cent do not have a household budget for the year.
The research detailed in this paper was conducted by Ipsos in Canada from Sept. 2 to 14, 2024. A sample of n = 3,404 adults aged 18 and over in Canada was collected. This survey has a credibility interval of +/- 2.4 percent, 19 times out of 20, of what the results would have been if all Canadian adults aged 18 and over had been surveyed.
