Inflation tops concerns for 49% of Canadians, but confidence in finances grows heading into 2025
A recent survey from TD Bank Group revealed that 49 percent of Canadians view inflation and the cost of living as their primary financial challenge for 2025.
While still significant, this figure marks a 9 percent decrease from last year, reflecting an improvement in financial sentiment.
Additionally, 24 percent of Canadians reported feeling more confident about their finances heading into the new year, up 4 percent from 2024.
The survey identified Canadians' top financial priorities for 2025, with 56 percent focusing on managing day-to-day expenses, 47 percent on saving and investing for the future, and 30 percent on paying down debt.
Millennials were the most likely to prioritize debt repayment, with 38 percent listing it as a goal compared to 21 percent of Boomers.
In terms of spending habits, 51 percent of respondents planned to cut back, a slight decrease of 4 percent from the previous year.
Of those who do not plan to reduce spending, 42 percent indicated they had already made significant cuts, with Gen Z and Millennials (49 percent each) reporting higher levels of spending reduction compared to Boomers (35 percent).
Among Canadians planning to cut costs, strategies included reducing retail purchases (63 percent), eating out less (56 percent), shopping for better deals (52 percent), and cutting entertainment expenses (41 percent).
Despite their ambitions, 61 percent of Canadians do not have a financial plan for 2025, and 63 percent do not work with a financial professional. Additionally, 70 percent reported not using budgeting tools like spreadsheets or mobile apps to manage their finances.
The survey revealed that 61 percent of Canadians have made financial New Year’s resolutions, focusing on key goals such as building up savings (18 percent), paying off credit cards or other debt (15 percent), and cutting back on spending (13 percent).
Emily Ross, vice-president of Everyday Advice Journey at TD, noted, “Our survey found that those who work with a qualified financial professional are 50 percent more likely to feel positive about their 2025 finances than those who do not work with one, highlighting the importance of expert advice.”
As Canadians navigate their financial objectives in 2025, TD offers tools and resources to help customers establish and achieve their goals.
Ross emphasized the importance of professional financial planning, stating that taking proactive steps can empower Canadians to achieve greater confidence and stability in their financial future.
