2 In 3 Canadians Plan Big Spending Cuts In 2026: TD Survey

A new TD survey reveals more Canadians are kicking off 2026 with big changes to their budgets and buying habits. Two-thirds (67%) of Canadians surveyed plan to cut back their spending this year – a significant spike from 51% in 2025. Nearly six in 10 (59%) say they’ll reduce their monthly budgets by up to $1,000 per month. Younger Canadians appear to be feeling the pinch more acutely, with 86% of Gen Z and 77% of Millennials preparing to slash their budgets compared to 65% of Gen X and 43% of Boomers.

In terms of how Canadians are cutting back, top budget sacrifices include:

• Eating out less often (55%)
• Making fewer retail purchases (53%).
• Spending less on entertainment, such as attending concerts, sporting events, movies (44%)
• Shopping around more to save purchases (41%)
• Switching from name-brand to store-brand products (39%)
• Cancelling some or all subscriptions (31%)

Beyond belt-tightening, Canadians are getting creative to help manage their finances as they head into 2026, such as couponing (30%), “no spend” challenges (30%) and thrifting (27%). One in four (25%) are even taking on a side hustle or part-time employment to help manage their expenses.

The Money Map Gap: Smart Financial Priorities, But No Plan to Achieve Them

As Canadians look ahead to the new year, their top financial priorities include saving and investing (47%), managing day-to-day expenses (46%), paying down debt (32%), supporting family or children (29%), and covering housing costs (26%).

Despite these goals, only 36% of Canadians have a formal financial plan for 2026 – highlighting a notable divide between intention and action.

“Intentions are a great first step but turning them into action is what truly makes the difference. One of the most empowering things Canadians can do is create a practical and achievable budget with clear savings goals. Something that not only guides you but also builds your confidence along the way,” says Joe Moghaizel, Vice President, Everyday Advice Journey at TD. “Simple habits, like pausing to understand your needs versus your wants, can strengthen your financial resilience and help you feel prepared to reach your goals in the year ahead.”

The “Buy Canadian” Movement Gains Momentum

Even with tighter household budgets in 2026, Canadians are doubling down on keeping their dollars at home. Nearly two-thirds of respondents (63%) say their commitment to buying Canadian is stronger this year than last.

When it comes to how Canadians prioritize boosting the domestic economy, buying Canadian-made products (38%) and buying from local small businesses (27%) are most important, outpacing buying from a Canadian brand (18%) and buying from a brand that employs Canadians (16%).

“While Canadians are being more intentional with their spending and savings, their desire to support Canadian-owned businesses is evolving from a trend to a habit,” said Julia Kelly, Vice President, Small Business Banking at TD. “This comes at a pivotal time for business owners who continue to face rising costs and a changing business environment.”

Additional resources for Canadians:

TD offers a number of tools and resources to help Canadians and TD customers plan, budget and track as they go into the new year:

• Build a budget that’s right for you: Setting a budget can help you keep your spending in check in 2026. TD Personal Bankers are available to offer financial advice and help customers plan their finances and reassess your goals with you.
• Keep your spending on track: Tracking your spending habits can help you see where your money is really going during the holidays. As a TD customer, you can take advantage of tools like the TD MySpend app that lets you see your TD deposit and credit card account information in real time.
• Using TD Goal Builder, where a TD Personal Banker can provide personalized investment advice to help customers work toward their financial goals.
• The TD Advice Hub which has information and articles available on a variety of financial topics and investing