How the cost of living in Canada is reshaping our spending habits with Andrew Grenville

In this episode of the Smart Advice Podcast, we delve into the financial factors and emerging trends shaping the lives of Canadians today. Joined by Andrew Grenville, Executive Vice President of Research at Angus Reid, we explore a range of topics, from the significant impact of rising living costs, to the evolving spending habits that prioritize savings over brand loyalty.

We also discuss the varied financial goals of Canadians, including retirement and travel, and the shifts in consumer behavior that are redefining the Canadian economic landscape. This insightful conversation sheds light on the challenges and hopes that define the financial realities for many today.

Tune in to gain valuable perspectives that could help you balance Canadian living costs against your financial goals.

Here are three reasons why you should listen to this episode:

1. Find out how Canadian living costs are reshaping how we spend our money.
2. Learn how Canadian spending habits have changed over the past five years.
3. Discover the kinds of financial goals Canadians have — and how it seems that everyone wants the same thing.

Resources

• Visit CIBC for more smart advice
• Read the Angus Reid Consumer Economic Pulse
• Read Eureka! The science and art of insights
• Read The Insights Revolution: Questioning Everything

Episode Highlights

[02:51] Financial Concerns Across Canada

• Nearly 70% of Canadians express concern over their financial future, while only 20% feel confident about their retirement security.
• Financial anxiety is widespread across Canada, with minimal regional differences.
• The majority of Canadians now allocate most of their budget to living costs, significantly impacted by rising food prices.
• Despite the pandemic being in the past, its effects continue to influence Canadian society and spending habits.

[06:26] Optimism About Financial Futures

• Approximately 54% of Canadians hold a positive outlook on their financial future, notably among the elderly and younger generations.
• Middle-aged individuals often feel less optimistic, experiencing greater financial pressure.
• Despite some optimism, around 75% believe future generations will face a lesser quality of life in Canada.
• Half of the population struggles to save money, with many barely managing to meet month-end expenses, highlighting a significant challenge in achieving financial security.

[11:09] Changes in Spending Due to Canadian Living Costs

• Brand loyalty is taking a back seat to cost savings among Canadian consumers.
• The rising cost of living has led to more intentional spending, which is positively viewed.
• There's a noticeable shift towards cheaper brands and reduced spending on non-essentials to ensure bills are paid.

[14:33] Canadians' Saving Goals

• Retirement remains a primary saving goal, yet there's also a strong interest in travel.
• Home ownership continues to be a goal, largely dependent on the individual's life stage.
• Other common saving objectives include addressing credit card debt and mortgage payments.
• However, only slightly more than half of Canadians are confident they can meet their financial goals.

[19:18] Future Trends in Consumer Behavior

• Uncertainty about living costs and finances is expected to persist, influencing consumer behavior.
• A continued move away from brand loyalty towards more deliberate financial decisions is anticipated.
• There's a likely shift towards valuing experiences over possessions, particularly in travel.

About Andrew

Andrew Grenville is a seasoned market researcher with over three decades of experience in the industry. As the Executive Vice President of Research at Angus Reid, one of Canada's leading public opinion research firms, he has spearheaded numerous studies that delve into the behaviors, beliefs, and economic conditions affecting Canadians.

Andrew is also an accomplished author, having published significant works in the field of market research, including books like "Eureka: The Science and Art of Insights" and "The Insights Revolution: Questioning Everything." His expertise and insights have been instrumental in shaping understanding of consumer trends and economic challenges across Canada.

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