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Marie Alcober
Updated Mar 23, 2026
The price of almost everything — from a carton of eggs to a pound of steak — remains stubbornly high.
For many Canadian families, the cost of keeping the fridge full is climbing by hundreds of dollars every year, leaving less room for everything else.
While you can’t control the price of groceries or inflation, you can control where your hard-earned money is leaking out of your budget.
There are likely a handful of fixed expenses you’re overpaying for right now. Here are five simple ways to help you cut back and keep more of your paycheque.
Paying too much on credit card interest
Do you feel like paying off your credit card debt is a constant grind, with no end in sight? You’re not alone.
At the end of 2024, the amount Canadians owed on their credit cards increased by 9% compared to the year before, according to a report by TransUnion.
Credit card interest hits harder because it compounds, which means even your interest accumulates interest. And if you’re only making minimum payments on multiple credit cards, you might end up paying more interest at a higher rate. This cycle can keep you in debt longer and make it more expensive to pay your bills.
A better option is to consolidate your debt by taking out a single loan at a lower rate. This can both ease your interest costs and improve your credit score.
With Loans Canada, you can shop for the most competitive interest rates on personal and debt consolidation loans, since Loans Canada specializes in comparing rates offered by different lenders.
You don’t need a minimum credit score or annual income to receive personalized loan offers.
Overpaying on bank account fees
Most banks charge between $5 and $35 per month in account fees – for a total annual expense of $400 or more.
One way to dramatically cut this cost is to get an account with an online bank. With no brick-and-mortar locations driving up expenses, online banks can drop monthly account rates — typically charging $0 in account fees and offering higher interest rates.
For example, open a personal account with EQ Bank in just a few minutes and you get access to the best features of a chequing account combined with a high interest savings rate.
When you fund your account, you’ll start earning 1.00% interest on every dollar right away. Set up a direct deposit, you can earn 2.75% on every dollar.
The account has $0 monthly fees and no minimum balances. Plus, you can withdraw from any ATM in Canada — for free.
Many banks offer you a high promotional rate that expires after a short period, typically after 90 days. Neo Financial takes the opposite approach: they reward you for staying committed to your goals.
With the Neo Savings account, your money works harder as your balance grows.
Unlock a very competitive 3% interest rate¹ once your combined balance hits $20,000. But even before you reach that milestone, you’ll earn a solid 2.25% right out of the gate. You can even open a joint account to combine balances to earn the higher rate.
With no monthly fees to eat into your earnings and with your deposits eligible for CDIC protection, it’s an account designed to help you reach your next financial milestone faster, not just provide a temporary perk.
High investment fees
If you're invested in mutual funds with a high management expense ratio (MER), those fees are cutting into your potential returns in the long run.
Consider investing in low-cost ETFs through platforms like Wealthsimple Portfolios.
Their pre-built portfolios are tailored to your retirement goals, risk tolerance and investment horizon, so whether you’re saving for retirement, a home or building long-term wealth, there’s a portfolio that’s right for every investor.
Expert-managed and designed to weather market ups and downs, Wealthsimple takes care of the heavy lifting: automatic contributions, dividend reinvesting and smart rebalancing keep your investments on track.
You can invest through RRSPs, TFSAs or non-registered accounts, all from an intuitive online dashboard or their easy-to-use mobile app.
Trusted by more than 3 million Canadians, Wealthsimple manages over $100 billion in assets and provides $1 million in eligible coverage through the CDIC for chequing accounts and CIPF for investments. Plus, as licensed fiduciaries, Wealthsimple's advisors must put your financial interests first.
As a Moneywise reader, get a $25 bonus when you open your first account and fund at least $1 within 30 days.
For a limited time, transfer $25,000 or more into an eligible Wealthsimple account and earn up to a 3% match, plus a chance to win a $3-million home. Offer ends March 31, 2026.
Visit Wealthsimple via our Apply Now button for up-to-date terms and conditions.
If you prefer choosing your own stocks, ETFs or options, paying premium fees for limited control doesn’t make much sense.
A self-directed account with Questrade puts you firmly in the driver’s seat, with transparent, low-cost pricing built for investors who want to make their own calls.
That means $0 commissions when you buy or sell Canadian or U.S.-listed stocks and ETFs online. If options are part of your strategy, there’s no ticket charge, just 99¢ per contract.
As a Money.ca reader, you can also get $50 cash back when you open a self-directed account with as little as $250.
Insurance premiums
Global life insurance premiums are set to increase at an annual rate of 3% in 2025 and 2026, according to a report by Swiss Re Institute.
If you have life insurance in place – especially a term policy – it may be worth comparison-shopping to find a more affordable option. You can typically cancel a term life policy without incurring any penalties.
Young families and busy professionals looking for fast and affordable insurance can easily connect with PolicyMe and get term life insurance in just a few clicks, with no medical exams or blood tests.
With PolicyMe, you can get life insurance coverage from $100,000 to $5 million, starting at around $21 per month. Couples receive 10% off in the first year. There are no hidden fees or fine print — just clear and flexible coverage you can trust.
Every dollar spent overpaying on a monthly bill is a dollar not compounding in your TFSA or RRSP or going toward mortgage prepayments.
For instance, auto insurance premiums have climbed 18.9% since October 2020, according to Statistics Canada.
This jump suggests you might be overpaying every month if you’ve simply just auto-renewed your policy.
While average annual premiums in Ontario hover around $1,927, for instance, many experienced drivers with good credit and a clean record can find rates closer to the $1,500 mark by shopping around.
By using a comparison platform like Rates.ca, you could potentially save $500+ by comparing 20+ quotes from top-rated auto insurance providers to ensure you aren't paying a hidden ‘loyalty tax’ to your current insurer.
Just answer a few basic questions, and Rates.ca will show you the most affordable deals in your area in as little as 3 minutes.
Not only is the process 100% free, but you could also potentially save 20% by bundling your auto and home insurance together.
Pet costs
If you have a pet, you know the costs can add up fast: food, grooming, toys and especially vet visits.
According to the Ontario Veterinary Medical Association, routine veterinary care for a dog can cost between $4,100 and $5,200 per year. And this doesn’t account for expensive emergencies.
That’s why paying for pet insurance often ends up being more affordable than paying out of pocket for surprise vet bills.
Instead of absorbing big, unexpected bills all at once, Petsecure² helps cover up to 80% of eligible vet bills, including taxes and exam fees.
Petsecure also offers four tiered plans depending on what you actually need — from essential coverage to unlimited accident and condition protection, plus dental and optional wellness care.
Sign up today and you can get 10% off your first year of pet insurance.
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Earnings for the Neo Savings account, a Neo Cash account, are derived from the interest Neo earns on the funds. Earnings are calculated daily on the total closing balance and paid monthly. Rates are per annum. Minimum combined balance required to earn boosted rates. The minimum combined balance required to qualify and the corresponding rates are subject to change without notice. For more details see this page.
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The views and information shared in this article are based on my personal experiences and general understanding. The author is not a licensed insurance agent, broker, or advisor, and nothing in this piece should be interpreted as insurance advice or a recommendation.
Marie Alcober
Content Strategist
Marie Alcober is a content strategist at Moneywise. She has worked as an editor, writer and producer for various media outlets, including MSN Canada, BNN Bloomberg, News UK, CBC Arts and Corus Entertainment.
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