Economic insecurity is reshaping how Canadians think about every dollar they spend. A new consumer study from Boston Consulting Group (BCG) shows household fragility is widespread, confidence is low and even high-income earners are being forced to tighten their budgets.
Just 38% of Canadians surveyed say they feel better off than they were five years ago, and 45% report feeling less financially secure than they did just last year. Elevated living costs — from housing to groceries — have eroded household buffers, while wage gains for many have been modest, at best.
“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.
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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,” according to the report.
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.
Read more: Here are 5 expenses that Canadians (almost) always overpay for — and very quickly regret. How many are hurting you?
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.
As a result, consumers are increasingly judging retailers not on flashy deals, but on consistency and credibility.
BCG’s findings reflect a shift in how Canadian households are navigating economic uncertainty. For consumers, predictable value offers stability in a period marked by rising costs, shaky confidence and volatile income growth.
For businesses, the message is equally clear: Earning loyalty now requires more than flashy promotions — transparency, reliability and fair pricing are top of mind for many consumers.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.