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

The post 2 In 3 Canadians Plan Big Spending Cuts In 2026: TD Survey appeared first on Muskoka411.

“Heading back to school should be an exciting time for students; a chance to explore new ideas, build friendships, and confidently shape their own path. But for many, financial stress can overshadow those opportunities,” said Joe Moghaizel, Vice President, Everyday Advice Journey, TD. “At TD, we’re committed to helping students and their families across Canada feel confident about their financial future. Whether it’s budgeting for groceries, managing tuition, or saving for social experiences, we offer tools, advice, and resources designed to support their journey toward financial independence.”

The Receipts Don’t Lie

• Only one in 10 (11%) students say they’re financially stable
• Just 64% feel knowledgeable about budgeting, compared with 84% of the general population
• Even though most already have a credit card, more than a third (37%) admit they don’t understand how credit scores work and more than three-quarters (83%) of students haven’t looked up their own credit score

Generational Divide
Students say one thing, but parents assume another. While 92% of students admit they’re stressed about money, only 75% of parents think their children are under financial strain. As for credit cards, 8 in 10 students have one (61% in their own name), but only 6 in 10 parents surveyed think that’s true – and just 35% realize it’s in their child’s name.

And when looking ahead, students are bracing for the job market (31% vs. 11% gen pop) and student debt (25% vs. 4% gen pop), while parents surveyed think the bigger issue is the cost of living (54%) and housing affordability (57%).

Advice to Help Student Life
TD offers a number of tools and resources to help students and parents with budgeting and financial planning for post-secondary education:

• Student banking packages which include a no monthly fee chequing account
• TD Student Budget Calculator is designed to help students manage their finances more effectively by inputting various sources of income and expenses, such as part-time job earnings, financial aid, tuition, textbooks, and other living costs to see where money is going and where spending may need to be adjusted.
• TD MySpend app allows TD account holders and credit card holders to help control their savings and spending by tracking daily and monthly cash flow, creating a wish list of savings goals and getting insights to help make these goals a reality.
• The TD Student Advice Hub can help students navigate their financial journey while in school and beyond through a variety of financial literacy advice.

Learn more about how TD can help support students to navigate key financial decisions: https://www.td.com/ca/en/personal-banking/solutions/student-banking

The post Back-To-School Adds Extra Financial Stress To Students, TD Survey Finds appeared first on Muskoka411.

Managing expenses and financial pressures

Canadian students are balancing a range of rising expenses, with top costs including rent or residence fees, groceries and food, transportation, and entertainment or social activities. To help meet these financial demands, students are leveraging multiple funding sources – 78% hope to work during the school year and 53% will take out student loans. Despite these plans, nearly half (48%) say they feel overly dependent on their parents for financial support.

“Students across Canada are navigating significant financial challenges, from the rising cost of living, to unique student-related expenses,” said Frank Psoras, Executive Vice-President, Personal Banking Products and Payments, CIBC. “Many students are responding by finding additional sources of income and adopting effective budgeting strategies, such as creating a detailed budget and reducing non-essential spending.”

Key budget management strategies students are adopting include:

1. Spending cuts: Creating a budget (55%), redeeming student discounts (36%), using loyalty cards (32%)
2. Reducing discretionary spending: Cutting back on non-essentials (49%), staying in more (36%)
3. Lowering living costs: Buying cheaper brands or using coupons (45%), living with family (40%)
4. Reducing education costs: Applying for scholarships (35%), buying used textbooks (24%)

Students are also focused on building their financial skills, with 65% anticipating they will have a financial plan for the year and 67% believing their university or college should offer personal finance courses.

Embracing digital solutions

As students navigate these challenges, digital banking tools have become a cornerstone of their financial routines. The survey found that 92% of students are comfortable using digital or mobile banking solutions, and more than half rely on mobile or budgeting apps as their primary tools for managing money.

“Today’s students have grown up with technology and expect seamless, intuitive banking experiences that fit their busy lives,” added Psoras. “Students have unique needs when it comes to their banking and we are committed to helping them navigate this important transition with confidence by providing the advice, relevant offers and support they need to reach their goals.”

Supporting students’ financial journeys

As students and their families prepare for the back-to-school season, CIBC provides the support and resources necessary to pursue and achieve their ambitions.

The CIBC Best Student Life Bundle is a best in market offering designed to address the unique needs of students with a no-fee Smart Start or Smart for Student chequing account to help manage daily expenses, an eAdvantage Savings account, and a choice of student credit card to help build a credit history – available in-person at banking centres or through one digital application, serving both domestic and international students. Through partnerships with organizations like Skip and SPC, CIBC provides access to exclusive offers and discounts helping students with the savings and support they need to succeed throughout their academic journeys and into the future.

CIBC Smart Planner is an intuitive tool that gives students timely insights into their spending habits to help them track and understand their finances better and stay on top of their goals.

For more information about CIBC’s student banking solutions and resources, visit the CIBC Student Hub.

The post Post-Secondary Students Feeling The Financial Crunch: CIBC Poll appeared first on Muskoka411.

Of those polled, more than 70% anticipate working in their retirement, either through a phased or semi-retired approach. With nearly half of Canadians expressing worry about outliving their retirement savings, retirees are looking for ways to save more for retirement, but also during their retirement by cutting back on planned travel or leisure activities, reassessing investment strategies to account for economic changes, and adjusting their retirement budget to spend less.

“Many Canadians worry about the cost of living today, but those close to retirement worry about how higher costs will affect their finances tomorrow, knowing they will be on a more fixed income,” said Carissa Lucreziano, Vice-President, Financial Planning and Advice at CIBC. “Working with a financial advisor now can help you reach your ambitions in retirement, and poll findings show that there is an increase in demand for financial advice, with three quarters considering or currently using financial advisors.”

Findings from recent Retirement Planning and Investing Polls highlight a growing reliance on diversifying funding sources, including TFSAs, RRSPs, mutual funds, individual stocks and HISAs. The findings also show a trend towards seeking financial advice from multiple channels, including digital platforms – 66% are using online investment management tools, and 53% shared that they have engaged with social media groups or blogs dedicated to financial/retirement planning. Findings indicate a growing interest in exploring digital options for financial advice, with newcomers showing the greatest interest in digital financial planning tools.

As CIBC continues to support Canadians in their financial journeys, these polls demonstrate the need for tailored financial solutions that address each individual’s unique challenges. By enhancing access to financial advice and digital tools, CIBC aims to empower Canadians to navigate their financial futures with confidence and make their ambitions a reality.

For more information about the polls and CIBC’s commitment to supporting Canadians, please visit CIBC’s website.

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In fact, of single Canadians, more than half (51 per cent) say they would consider ending a relationship due to financial incompatibility. Further, nearly three quarters (74 per cent) of singles would hesitate to date someone with significant debt, and 28 per cent believe financial compatibility is more important than physical attraction. Overall, financial security has become increasingly important on the dating scene with 65 per cent considering a potential partner’s financial security as a key factor in their dating decisions.

“Canadians are navigating a landscape where financial stability is top of mind and has even become an important relationship flag,” says Atanaska Novakova, Executive Vice-President and Head, Simplii Financial. “In today’s economy, financial literacy and communication skills may be more attractive qualities in a partner than ever before.”

The survey also reveals that money is a major stressor for coupled Canadians, with nearly half of those aged 18-54 affirming this. Additionally, 52 per cent of coupled Canadians agree that the current economic climate has made managing finances together more challenging, and 72 per cent see room for improvement in their financial communication as a couple.

Additional key survey findings:

• The economic impact on expectations. Nearly half of singles (46 per cent) report that current economic conditions have shifted their financial expectations in relationships, as they now look for partners who demonstrate more financial acumen.
  
  
• Riding solo. Nearly half of Canadians (49 per cent) feel like they’re managing personal finances solo even within a relationship, which suggests a need for better financial communication.
  
  
• Honesty and openness are key for coupled Canadians. Among Canadians in relationships, 77 per cent consider themselves financially compatible with their partners. Key factors for this compatibility include not hiding spending or debt (60 per cent), being honest (58 per cent), and talking openly about money (52 per cent).
  
  
• Shared lives, separate finances. Only 44 per cent of couples have a shared chequing account; 35 per cent generally spend independently; and 33 per cent have a shared savings account. Just 30 per cent have a shared financial plan, while only 25 per cent follow a budget together.
  
  
• Those three little words: “Let’s talk money” While nearly all couples (95 per cent) agree it’s important to be on the same page financially, only 45 per cent discuss finances weekly, with 55 per cent having these conversations only a few times a month or less. Of the one-third of Canadians (36 per cent) who admit they have trouble talking about money, younger people (42 per cent of 18–34-year-olds) struggle the most.

“Finding love and managing financial conversations aren’t simple, but banking should be,” adds Novakova. “Simplii offers no-fee daily banking and perks that earn cash back on date night so our clients can be a ‘right swipe’ when it comes to finances.”

This Valentine’s Day, Simplii Financial wants Canadians to spend more time enjoying their love lives and less time stressing about navigating financial differences. Here are some ideas to make that happen.

1. Make it a date. Schedule regular money talks to ensure both partners are in sync about spending, saving, and financial goals. Use that time to establish short-term and long-term financial goals, like saving for a once-in-a-lifetime vacation or planning for retirement. Goals are easier to attain when you each agree on what they are and what sacrifices will be needed to get there.
   
   
2. The couple that budgets together, stays together. Budgeting can be bonding. Develop a shared budget that reflects both partners’ incomes and expenses; this transparency and accountability can bring you closer and keep financial surprises at bay.
   
   
3. Respect financial independence. While working together on finances, consider a shared account for joint expenses while maintaining individual accounts for personal spending. This ensures both partners feel financially independent and respected.

The post New Survey Reveals Canadians Are Prioritizing Financial Security Over Spark appeared first on Muskoka411.

The poll also found that inflation/rising costs of household goods (66 per cent) and high interest rates (28 per cent) remain the top financial concerns for Canadians. While 65 per cent of Canadians are worried about the possibility of a recession, over half feel prepared to weather an unexpected financial event or hardship (59 per cent) and most feel their financial situation is secure enough to withstand a recession (53 per cent).

“Financial priorities are shaped both by ambitions and by the economic environment – and we’re seeing Canadians adapt to the current environment by learning new strategies, such as creating a budget or reducing spending, to help them stay on track,” said Carissa Lucreziano, Vice-President, CIBC Financial Planning and Advice. “Prioritizing savings when costs are on the rise is challenging, but gaining insight from an advisor can empower Canadians with tailored, personalized advice and solutions to help them reach their financial goals.”

Despite challenges, Canadians are feeling a sense of optimism for the upcoming year, with 76 per cent expressing confidence in achieving their 2025 goals. 64 per cent of Canadians maintain a positive outlook on their current financial situation, with only 28 per cent having taken on more debt in the past 12 months.

Additional findings from the annual Financial Priorities poll: 

• Top reasons for taking on more debt include increased cost of living (44 per cent), day-to-day expenses beyond monthly income (29 per cent), unexpected financial emergencies (21 per cent), new vehicle (16 per cent), and loss of income (14 per cent).
• Among those currently employed, 54 per cent are concerned about their job security given the present economic environment.
• 24 per cent say advice to help manage the cost of living would help them feel more prepared for unexpected financial hardships.

Tools and support

In addition to expert, personalized advice, CIBC also offers clients the following online tools to help manage their everyday expenses and overall finances:

• Budget Calculator, offers a clear picture of your monthly cash flow to help make informed financial decisions.
• CIBC Smart Planner, an intuitive goal planning tool that makes it easy for you to set, track and reach your financial goals.
• CIBC Insights, offers tips and proactive alerts about everyday spending to make it easier for you to manage your money and stay on track to achieving your financial goals.

The post Repaying Debt Is The #1 Financial Priority For Canadians In 2025: CIBC Poll appeared first on Muskoka411.

Sixty-five per cent of students define themselves as financially unstable and nearly half (45 per cent) are currently unable to adequately cover basic needs such as food and housing. Over a third (37%) of students also regularly compare their financial situation to others, with 28 per cent feeling inadequate around those who appear to be financially better off. Of the students surveyed, 64 per cent have some form of a budget to track their monthly expenses but less than half (41 per cent) say they are able to follow it on a regular basis.

Although many students do have a budget in place, 61 per cent say they wish they knew more about budgeting and financial planning strategies, and almost half (46 per cent) would like to learn more about savings and investment vehicles such as RRSPs and GICs. Interestingly, one in five (20%) of students now primarily get their financial advice from social media platforms such as TikTok, Instagram and YouTube.

“Our survey shows that many Canadian post-secondary students wish they knew more about budgeting and managing their finances, and it’s encouraging to see them interested in seeking advice,” said Emily Ross, VP, Everyday Advice Journey at TD. “That said, it’s prudent for students to exercise some caution when taking financial advice from certain sources on social media platforms, which are often unvetted and untailored to each individual and their unique circumstances.”

Majority of parents providing significant financial support, but acknowledge their child needs to improve their spending habits

When looking at it from the parents’ perspective, 94 per cent of parents of post-secondary students say they provide some level of financial support to their child, with 58 per cent saying they provide a significant amount of support.

Parents are also apprehensive about their child’s budgeting capabilities with 87 per cent believing it needs improvement. Key areas for improvement parents identified include:

• Developing better spending habits (60 per cent)
• Better financial literacy (42 per cent)
• Less reliance on their parents for financial support (37 per cent)
• Using financial apps to track their budget (27 per cent)

“Coming out of the survey, we can see that Canadian parents recognize areas in their children’s financial knowledge and spending habits that could use some improvement,” adds Ross. “At TD, we understand that this can be challenging when faced with the financial pressures that come with post-secondary studies and are here to provide solutions that can ease this burden for parents, while also helping to educate students. Our team of certified professionals and budgeting tools can support parents and students who want to reprioritize their savings and successfully navigate the costs of higher education with greater confidence and less stress.”

Helping post-secondary students and parents prepare for the future

TD offers a number of tools and resources to help students and parents with budgeting and financial planning for post-secondary education:

• TD Student Budget Calculator is designed to help students manage their finances more effectively by inputting various sources of income and expenses, such as part-time job earnings, financial aid, tuition, textbooks, and other living costs to see where money is going and where spending may need to be adjusted.
• TD MySpend allows users to control their savings and spending by tracking daily and monthly cash flow, creating a wish list of savings goals and getting insights to help make these goals a reality.
• The TD Student Advice Hub helps students navigate their financial journey while in school and beyond through a variety of financial literacy planning tools and advice.

The post Nearly Half Of Canadian Students Are Unable To Adequately Cover Basic Needs Such As Food And Housing, TD Survey appeared first on Muskoka411.

The poll reveals that around two-thirds (64 per cent) consider themselves to be financially literate—three-quarters (75 per cent) describe their parents as being the same, but three-fifths (60 per cent) are less confident in the financial literacy of their peers, indicating that they think the group as a whole is struggling.

Do students get a passing grade?

• Only one in ten (10 per cent) grade themselves an “A” on financial independence
• The highest proportion (32 per cent) of students give themselves a “C” grade
• Just 6 per cent assign themselves an “F”

Regardless of where they land on financial literacy or independence, most of Canada’s post-secondary students indicated that they practice fiscally responsible behaviours, such as:

• Knowing and understanding credit scores (80 per cent)
• Tracking their spending (78 per cent)
• Understanding credit card interest (76 per cent)

“While Canadian post-secondary students are financially responsible, they’re hard on themselves and their peers when it comes to understanding personal finance,” says Jimmy Dinh, Managing Director and Head, Simplii Financial. “Many of them also expect to face more financial challenges with today’s higher cost of living.”

For many students, their upbringing may have helped instill these fiscally responsible behaviours—three in five (60 per cent) feel their financial education has prepared them well for adulthood. The results imply that Canada’s post-secondary students are, on balance, receiving adequate financial education and training, but reliance on loved ones for financial support may be driven in larger part by the job market for post-secondary students.

More than half of students (57 per cent) expect it to be challenging to find employment, co-ops, or internships next summer, and a majority (55 per cent) think it will be difficult to secure part-time employment during the school year to help offset their expenses. Almost half (45 per cent) feel that their earnings from their summer employment won’t cover the cost of living during the school year.

Some tips from Simplii Financial on how students can manage the cost of living include:

• Using student discounts – Many universities and colleges publish discounts in their student handbooks, plus if your student card isn’t cutting it, programs like Student Price Card may also be worth a look.
• Leveraging cash-back offers – Right now Simplii Financial has a $500 cash-back offer for new clients, and it could be the difference between financial independence or relying on the “bank of mom and dad.”
• Focusing on networking – Finding a summer job or part-time employment the usual way can be a big demand on your time, so networking with professors or other professionals could be just what you need to bag a research position or summer co-op.

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Key Statistics

• 44 per cent of post-secondary students are spending at least three-quarters of their total income on post-secondary education, without factoring in food and living expenses.
• 64 per cent of students stated they would not be able to afford their education without the help they received from their parents. In fact, 43 per cent claimed they would have to drop out if their parents did not support them financially through it all.
• Over 1-in-4 (26%) said they have considered dropping out of their post-secondary program because of money.

Click here to view national and provincial data related to the study.

Despite 3-in-4 (75%) reporting that their parents have helped them financially, many students are stretching themselves far too thin. The data outlines the financial realities of today’s post-secondary students and the lasting impact as they enter their careers, as well as what steps can be taken to improve the probability of better financial outcomes.

Financial Realities of Today’s Post-Secondary Students

Student debt has become an accepted part of the post-secondary experience, with almost half (48%) of students polled currently having, or expecting to have, student debt. In fact, 1-in-3 students (33%) said they currently have more debt than savings. When asked, 49 per cent stated they were worried about the future with how much debt they were taking on, and over 4-in-5 (82%) claimed the financial realities of a post-secondary education were overwhelming.

The cost of education has historically outpaced Canada’s target inflation rate, and both the cost of living and education have rose significantly in recent years. As a result, 74 per cent of students polled said it is very hard to afford a post-secondary education and over half (52%) have had to cut out certain necessities to make ends meet in today’s high-priced environment.

To help fund their education, just under two-thirds of students (64%) said they have a part- or full-time job to help pay for school. While 39 per cent state their grades have been affected by their financial obligations and over 3-in-4 (76%) say it is difficult to balance school and work at the same time, it has become a necessity for many to offset costs. However, finding a job during school may prove increasingly difficult. Current economic conditions have led to a tough job market for part- and full-time work, cutting off what many students see as a financial lifeline.

“In today’s challenging job market, it is particularly difficult for younger Canadians to secure part- and full-time jobs. For those who rely on employment to support their education, this adds another layer of difficulty on top of rising education and living costs,” said Andrew Lo, President & CEO of Embark. “Our survey showed that 68 per cent of post-secondary students wish they had saved more money before starting school, a sentiment that will only grow stronger in our current economic conditions. Students and their parents would benefit from starting education savings early to provide a larger financial cushion in volatile times.”

Carry Debt Post-Graduation

Canadians find the value in pursuing an education, with 61 per cent of students surveyed saying it is hard to succeed in life without a post-secondary education. However, 2-in-3 (66%) state that graduating with student debt will make it harder for them to become financially independent from their parents and start their life after school. This is particularly true as 41 per cent of those polled intend to live with their parents after post-secondary school for a prolonged period because of student debt.

Looking at how much debt they expect to accumulate, students expecting to graduate with debt think they will accumulate $25,382 of debt graduating from school and it will take them 2.8 years to pay off on average. In actuality their level of debt is likely be far greater, with Statistics Canada recently reporting the average figure to be $30,600 in 2020¹. Student loans also often take much longer to pay off, with loans like Ontario Student Assistance Program, for instance, being designed to be paid back over 9.5 years.

How Can We Better Prepare Students for Post-Secondary?

For many (59%), being a post-secondary student marked the first time they have had to handle their own finances. Making financial decisions for the first time, particularly in the face of handling both major costs and day-to-day spending, can be incredibly stressful. Two-thirds of students (66%) claim that looking at their bank account causes them anxiety, and 52 per cent say they simply avoid thinking about debt and money. Even for those who want to face their money troubles head on, 66 per cent of students say they want to improve their finances but do not know how.

Compounding onto this, students find there is insufficient transparency around post-secondary options and information. Almost 3-in-4 (73%) students polled wish there was more transparency about post-secondary options, and almost half (49%) said if they could go back in time, they would make different decisions about their education.

Additional statistics include:

• 57 per cent wished they knew more about post-secondary school before making a decision of where to go or what to study.
• Almost three-quarters of students polled (74%) stated that navigating the post-secondary process is complicated.
• 69 per cent wished they had more guidance when planning their post-secondary education.
• Looking back, 47 per cent believe they were not provided enough information to make an informed choice about post-secondary education.

“The lack of preparedness of students in choosing their post-secondary education is a shortcoming we all bear. For young Canadians, this is a significant financial and life decision that will impact their futures,” said Lo. “At Embark, we are addressing this by offering more resources to enhance transparency on post-secondary options and related costs, enabling more informed decisions.”

Tips and Tricks to Set Up Students for Success

For Parents:

Get granular and forecast. If you are interested in helping your child pay for school, the first step is to forecast the cost of your child’s education. Figure out how much of it you would like to help pay for, and from there, work backwards to understand how much you will have to save. Embark can help with its RESP calculator, which can project your child’s costs and help you define your goals.

Save smarter. A registered education savings plan (RESP) is a great, tax-advantaged way to help you set aside funds for your child’s post-secondary schooling. The money you contribute to an RESP grows tax-free when in the account, and when withdrawn, what you have grown is treated as taxable income to your child, who is typically in a much lower tax bracket. The best part is, the government will put money towards your child’s education for just saving in an RESP. If saved correctly, this works out to an additional 20 per cent on your first $36,000 saved.

Be transparent. Talk to your children about how much you saved and whether you will help them pay for school. The vast majority of students (80%) wished there was more transparency about the cost of education, and parents can be their first resource. Speak to them early to help them budget, and create savings goals to help them build an education nest egg using actual costs and data. The more time they have to do so, the better off they will be.

For Students:

Do your research. Learn more about costs as well as program requirements and demands. From polling post-secondary students, 45 per cent wish they had done more research into different schools while applying for their post-secondary education. Thankfully, Embark has just launched its Career & School Matcher that can help chart a post-secondary path based on your desired profession and project costs.

Start building your financial literacy early. The more active a role you take in building smart spending and saving habits, the better. This also takes away from the sticker shock of everyday expenses once you live independently and can help you better manage and plan for the cost of education.

Think about program intensity. If a program requires a lot of time and energy, take that into account when budgeting and financially planning for school. By having a financial cushion in an RESP, you will likely have significantly more breathing room if you do not have as much time to work during the school year, or are unable to find a job right away.

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One significant contributor to this mounting stress is the repayment of Canada Emergency Business Account (CEBA) loans. With the deadline for CEBA loan repayments now passed, many businesses find themselves navigating the financial strain of monthly payments accompanied by a higher interest rate — a stark contrast to the initial terms of interest-free and no monthly payments. On January 19, 2024, CEBA loans converted to a three-year term loan with five per cent interest payable per year.

“Canadian businesses are facing a perfect storm of economic pressures,” says Jeff Brown, Head of Commercial Solutions for Equifax Canada. “The end of the initial grace period for CEBA loans, combined with high input costs, labour expenses, a slowdown in consumer spending and high interest rates, is creating a challenging environment.”

“These factors are contributing to a growing trend of business failures,” continues Brown. “The sharp rise in insolvencies, representing a 30.3 per cent surge since 2019, underscores the financial pressures faced by businesses. There is a need to manage debt and adapt to changing market conditions through strategic financial planning and proactive measures.”

Missed Payments Adding Up
Delinquencies across business credit accounts continued to rise, with industrial and financial trades experiencing increases in account-level delinquencies. In Q4 2023, industrial trades experienced an 8.8 per cent increase in 30+ day account-level delinquencies, reaching 11.2 per cent. Financial trades saw a 3.1 per cent increase to 3.3 per cent.

Installment loan delinquencies reported a significant surge, with early-stage delinquencies up by 12.5 per cent and late-stage delinquencies up by 16.3 per cent year-over-year, suggesting that businesses are struggling with monthly loan payments. Revolving credit (cards and line of credit) delinquencies of 30+ days grew by 1.3 per cent year over year, reaching 3.2 per cent in Q4 2023. Real estate, rental, leasing, and retail trades also witnessed substantial increases in missed payments.

The provinces with the highest financial trade delinquency rates are Alberta (3 per cent), Ontario (2.9 per cent) and Quebec (2.6 per cent), with Quebec also having experienced the largest uptick year over year from 2.4 per cent to 2.6 per cent in severe (90+ days) delinquency rate.

Reported outstanding balances from financial trades continued to rise, reaching $31.8 billion in Q4 2023, and marking a 7.4 per cent annual increase driven primarily by a 15.3 per cent increase in credit card balance.

Demand for Credit Continues
Despite a slowdown in inflationary pressure, new credit growth remains subdued, with high interest rates and tighter lending criteria constraining lending activities. This is evidenced by a notable decline in new originations for both financial (-24.4 per cent) and industrial trades (-15.3 per cent) compared to the previous year. However, despite reduced lending activity, the demand for credit among businesses remains robust, as reflected in a 5.5 per cent increase in credit inquiries.

“The demand for new credit may point to signs of growth and expansion as Q4 2023 saw a 21.9 per cent rise in establishment of new businesses when compared to the same time period in 2022,” says Brown. “As always, we will monitor this closely and we will provide insights to help businesses respond to the ever-evolving market conditions.”

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