As economic anxiety rises, 50% of Canadians feel they're worse off financially, and discounts alone aren’t cutting it. How to get ahead for 2026

“The result is a market where price sensitivity is pervasive,” BCG noted in its report. But promotions alone no longer work. Instead, Canadians say they are looking for “predictable value,” meaning fairness, quality and everyday low prices they can count on.

Canadians are feeling less secure — and it’s showing in their spending

BCG’s survey of more than 3,000 Canadians paints a picture of households under persistent financial strain.

High housing costs remain a central driver of financial unease. With two-thirds of Canadian mortgages set to renew by 2027 — many at rates far higher than their pandemic-era lows — affordability concerns are intensifying. BCG estimates that for a $500,000 mortgage, a one-percentage-point increase in rates adds roughly $400 to monthly payments, “the equivalent of a car payment for an entry-level car.”

Job insecurity also compounds the pressure. Nearly half of surveyed Canadians reported layoffs at their workplace within the past six months, and 58% worry more are coming.

Income stagnation is widespread, with seven in 10 saying their household income has stayed flat or declined. Among those who did see increases, BCG found that more than half gained less than $500 per month, leaving little room to absorb rising prices.

Emergency savings are also thin, with over one-third of households surveyed reporting that they could not cover more than a month of expenses if their income suddenly stopped.

BCG argues that these financial pressures are directly reshaping spending behaviour.

According to the survey, 46% of Canadians report spending less today than a year ago — up sharply from 37% in 2024 and 34% in 2023. Many believe inflation is running far hotter than official data shows, with most estimating prices rose 10% over the past year, even though measured inflation is lower.

With all that in mind, now is a better time than ever to start budgeting so you have money set aside for emergencies and can clearly define necessary vs. unnecessary spending while you’re at it. One option is to use Monarch Money — a budgeting app — to both build and follow your budget, helping ensure you’re staying on track.

The app lets you choose Category or Flex budgeting depending on your preference. The first involves assigning an amount of money to specific spending categories, and the second works by tracking your spending in flexible categories each month.

Whichever you choose, Monarch Money keeps budgeting simple so you can spend with intent and have enough extra cash to build a safety net.

Even better, Monarch offers a seven-day free trial. If you like what you see, you could then snag 50% off with code WISE50

Why discounts aren’t enough: Canadians want predictable value

BCG’s data shows a clear shift in what shoppers prioritize. When asked what defines good value, Canadians ranked product quality for the price first, followed by low regular prices — with promotions far behind.

And this preference isn’t limited to lower-income households. Nearly three-quarters of Canadians who feel financially insecure ranked low regular prices as their top priority, but even 46% of those with stronger financial cushions said the same.

This suggests consumers are increasingly judging retailers not on flashy deals, but on consistency and credibility.

Not only can you make your spending count by choosing retailers that align with your priorities, but you can also amplify your savings and optimize your spending by using Simplii Financial's chequing account and the Tangerine Money Back Credit Card.

Most banks charge between $5 and $35 per month in account fees — for a total annual expense of $400 or more. But using an online bank like Simplii means no brick-and-mortar locations to drive up expenses.

Simplii’s no-fee chequing account has no minimum balance and offers unlimited debit purchases, bill payments and withdrawals for free, making it easy to access your cash as needed and only spend when you really want to.

And the best part? Simplii is offering a bonus $300 and a $50 Skip gift card when you open a no-fee chequing account and set up an eligible direct deposit of at least $100 for three months. This offer ends Jan. 31, 2026.