Mar 7, 2025
Many Canadians are looking at their financial well-being in 2025 with at least some level of concern. A new H&R Block survey reveals 64% of Canadians are concerned that 2025 is going to be a challenging year for them financially.
"Many Canadians are feeling the pinch of higher costs-of-living and are looking to manage spending and seeking ways to put money back in their pockets. This includes embracing filing their taxes, with nearly two-thirds of Canadians who are expecting a refund this year," Yannick Lemay, H&R Block’s tax expert, said in a statement.
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"The good news is there are more than four hundred tax credits and benefits that help Canadians minimize their taxable income and maximize their refunds, from childcare, education credits, dental benefits, Canada Workers Benefit, and health and wellness related expenses and many more."
In fact, over three-quarters (78%) of respondents to the survey say plan to reduce spending in 2025 due to the cost-of-living price pressures.
Financial issues facing Canadians
Overall, 92% of Canadians are concerned that the looming impact of tariffs will further increase the cost-of-living, and 81% are concerned tariffs will negatively impact their finances.
Around two-thirds of Canadians worry about spending within their means, whereas around a quarter are more focused on living their best life. Overall, 63% say they live comfortably at their income level; conversely 32% struggle to make ends meet each month.
Some relief can come from tax refunds. Nearly two out of three Canadians expect a refund this year, of which 35% indicate they're expecting the same or a bigger refund this tax season compared to previous years. However, according to the H&R Block release, a large portion of Canadians report having no idea whether or not they'll get a refund.
By extension, more than a third of Canadians don't feel they have a good understanding of all the new tax credits and benefits to maximize their return this year. Just under a quarter of respondents report being part of the gig economy, of which 27% aren't clear on tax implications of any gig-related income.
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What are Canadians spending their money on?
The top three expenses by percentage of monthly income are day-to-day essentials (which accounts for 27% of Canadians net income), rent and mortgage payments (24%) and credit card and loan payments (14%).
The remainder of the top 10 Canadian expenses looks like this:
- Childcare related costs: 10%
- Technology and subscriptions: 10%
- Health and wellness : 8%
- Put towards savings account: 8%
- Entertainment: 7%
- Food take-out and delivery services: 6%
- Apparel: 6%
Just over a quarter of Canadians (27%) say they are frugal with their money as they are focused on saving up to buy a home in the future. However, a third take the opposite viewpoint, feeling they may as well enjoy spending, since buying a home seems out of reach.
Survey methodology
The survey was conducted by H&R Block from Feb. 12 to 13, among a representative sample of 1,469 Canadians in English and French.
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Nicholas completed his master's in journalism and communications at Western University. Since then, he's worked as a reporter at the Financial Post, Healthing.ca, Sustainable Biz Canada and more. Aside from reporting, he also has experience in web production, social media management, photography and video production. His work can also be found in the Toronto Star, Yahoo Finance Canada, Electric Autonomy Canada and Exclaim among others.
Managing Money • Mar 06
