What consumers plan to do with their money next year

A recent survey of Canadian consumers indicated that personal budgets will be trimmed in 2022.

The findings came out of findings from a life insurance survey. PolicyAdvisor.com’s State of the Nation: Life Insurance Trends 2021 looked at how Canadians’ attitudes were changing saving, spending and life insurance in a post-pandemic economy.

Nearly six-in-10 (59 per cent) of respondents said they’re concerned about rising costs due to inflation and expected increases in interest rates. Recently, the 12th edition of Canada’s Food Price Report projected that the average family of four will spend nearly 1,000 more on food in 2022.

Job security is another top concern for Canadians (14%). The survey results, the company said, reflect short-term concerns many have as they return to the workforce in the new normal.

“Canadians know they are going to feel some pain in their pocketbooks in the next 12 months,” said Jiten Puri, CEO and Founder of PolicyAdvisor. “But, it’s the immediate uncertainty of pricing, be it grocery bills or mortgage rates, that is top of mind, and may lead to across-the-board spending cuts.”

When it comes to planning out their budget for 2022, Canadians reported that they’ll cut spending on entertainment (51%), travel (43%) and clothing (42%).