Jul 21, 2026
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Add us on GoogleAn unexpected car issue, a broken appliance or a medical bill can put even a carefully planned budget under significant strain. For many Canadians, the bigger concern is whether they have enough savings to handle it without having to take on extra debt.
A new RBC poll suggests that’s a worry shared by many households. More than half of Canadians (52%) said they don’t think they’ve saved enough for an emergency, while 42% said a single major unplanned expense could throw their finances off course. One-third (33%) said even a smaller surprise bill would be difficult to absorb.
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“Financial stress in any form can affect how secure and in control people feel,” said Erica Nielsen, group head of RBC Personal Banking, in a statement. “We want to help Canadians build the habit of setting some money aside regularly, even a small amount, so that when expenses arise without warning, they have the financial breathing room to handle them.”
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Why building an emergency fund feels so difficult
The biggest obstacle is one that will sound familiar to many Canadians: the cost of everyday life.
More than three-quarters of respondents (76%) said the high cost of living has made it harder to build or maintain emergency savings. More than half (55%) said they struggle to save for emergencies while also working toward other financial goals, and 45% said their finances are simply stretched too thin to make meaningful progress.
The survey also found that nearly one in three Canadians (32%) don’t have an emergency fund at all. That rises to 38% among households earning less than $100,000 a year.
When surprise costs do come up, many people rely on whatever resources they have available. Four in ten respondents (41%) said they would use savings, 35% said they would turn to a credit card and 15% would borrow from family or friends.
Car repairs topped the list of emergency expenses Canadians worry about most, followed by major home repairs and medical or health-related costs.
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How to start an emergency fund
An emergency fund isn’t built overnight. In fact, the poll suggests many Canadians who have one are growing it gradually through small, consistent contributions rather than large lump sums. Nearly half (49%) of respondents with an emergency fund said they add to it at least once a month.
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Financial experts generally recommend setting aside enough money to cover several months of essential living expenses, but that goal can take time. The important first step is simply getting into the habit of saving, even if it’s only a small amount each month.
“It’s encouraging to see how many Canadians are adopting two of the most effective ways to build their emergency fund: by using a dedicated savings account and through consistent contributions,” Nielsen noted.
“Keeping your emergency fund in a separate account makes it less likely you’ll spend that money until you truly need it. And by setting up pre-authorized contributions — from your paycheque, for example — your emergency fund can grow steadily in the background while you focus on other priorities,” she added.
Finally, remember that an emergency fund is there to be used. If an unforeseen expense means you need to draw on those savings, rebuilding the fund gradually afterward can be more realistic than trying to replace it all at once.
For many households, setting aside money for the future is far from easy when today’s bills already demand so much. But even small, regular contributions can make the next surprise bill feel a little more manageable — and offer some valuable peace of mind along the way.
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Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and US brands, while also working as a ghostwriter for financial influencers.
