Struggling financially due to the cost of living? You&#8217;re not alone. A new survey shows most Canadians feel like they&#8217;re only just covering their living costs.
A new <a href="https://www.newswire.ca/news-releases/are-emaciated-canadian-piggybanks-today-s-reality--826886526.html" target="_blank" rel="noopener">H&amp;R Block Canada</a> survey on how much money Canadians save shows that they&#8217;re increasingly worried about not putting enough away for a rainy day. As a rule of thumb, 20 per cent of people&#8217;s paycheques should go towards savings. However, on average, participants said they only manage to put away 7 per cent of their earnings.
That&#8217;s because the majority of participants said that they feel like living paycheque to paycheque is the &#8220;new reality.&#8221;
&#8220;When thinking about the prevailing culture of saving in Canada, a whopping 85 per cent feel that living paycheque to paycheque is the new norm,&#8221; reads the survey. &#8220;This is up from 60 per cent who said they felt that way in a similar H&amp;R Block study from 2024.&#8221;
It&#8217;s hardly surprising, given that one in 10 Canadians say that what they earn isn&#8217;t enough to cover living costs. Overall, 51 per cent said that they&#8217;re struggling to make ends meet. Although they make a decent salary, 81 per cent said their income simply can&#8217;t keep up with rising costs.
Canada’s Food Price Report (CFPR) had forecast that food prices will increase anywhere from 3 to 5 per cent in 2025. The report states that an average Canadian family of four is <a href="https://dailyhive.com/vancouver/canada-food-price-report-2025" target="_blank" rel="noopener">expected to spend $16,833.67 on food this year — up $801.56 from 2024</a>.
Meanwhile, the federal minimum wage increased by 45 cents on April 1 from $17.30/hour to $17.75 per/hour — <a href="https://dailyhive.com/canada/minimum-wage-2025-canada-increase" target="_blank" rel="noopener">a mere 2.4 per cent increase</a>.
<h2>Dwindling savings accounts</h2>
<div id="attachment_2124639" style="width: 2058px" class="wp-caption alignnone"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-2124639" class="size-full wp-image-2124639" src="https://images-dh-production-baselayer.dailyhive.com/uploads/2025/04/cost-of-living-2.jpg" alt="cost of living" width="2048" height="1365" srcset="https://images-dh-production-baselayer.dailyhive.com/uploads/2025/04/cost-of-living-2.jpg 2048w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/04/cost-of-living-2-500x333.jpg 500w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/04/cost-of-living-2-1024x683.jpg 1024w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/04/cost-of-living-2-1536x1024.jpg 1536w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/04/cost-of-living-2-1200x800.jpg 1200w" sizes="(max-width: 2048px) 100vw, 2048px" />fizkes/Shutterstock</div>
The combination of rising costs and stagnant salaries means that people&#8217;s savings accounts have taken a hit.
A total 74 per cent of Canadians said they worry that they&#8217;re not saving enough money, and 62 per cent said they just don&#8217;t have enough left to put towards savings.
The situation has left many feeling vulnerable when it comes to unexpected expenses.
Almost half of Canadians (48 per cent), said they depend on credit cards for larger purchases rather than their savings, and 17 per cent said they opt for installment payment options to pay down their purchases.
The current economic situation has 56 per cent of Canadians worrying that unexpected expenses such as car repairs or broken appliances could put them in debt.
<h2>A bleak outlook</h2>
<div id="attachment_2124638" style="width: 2058px" class="wp-caption alignnone"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-2124638" class="size-full wp-image-2124638" src="https://images-dh-production-baselayer.dailyhive.com/uploads/2025/04/shutterstock_1980000383.jpg" alt="cost of living" width="2048" height="1365" srcset="https://images-dh-production-baselayer.dailyhive.com/uploads/2025/04/shutterstock_1980000383.jpg 2048w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/04/shutterstock_1980000383-500x333.jpg 500w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/04/shutterstock_1980000383-1024x683.jpg 1024w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/04/shutterstock_1980000383-1536x1024.jpg 1536w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/04/shutterstock_1980000383-1200x800.jpg 1200w" sizes="(max-width: 2048px) 100vw, 2048px" />Denys Kurbatov/Shutterstock</div>
As Canadians grapple with rising costs, stagnant wages, and economic uncertainty brought on by a U.S.-Canada trade war, 78 per cent said they&#8217;ll likely have even less money left for savings.
With their salary only covering their cost of living, 46 per cent said they can&#8217;t afford to save for retirement or purchase a home. And because homeownership feels unrealistic, 33 per cent said they &#8220;may as well enjoy spending their money as buying a home feels out of reach for the foreseeable future.&#8221;
Do you feel like you&#8217;re living paycheque to paycheque, despite making what would ordinarily be considered &#8220;good money&#8221;? Are you a minimum wage earner struggling to make ends meet? Share your experience with us at <a class="c-link" href="mailto:trending@dailyhive.com" target="_blank" rel="noopener noreferrer" data-stringify-link="mailto:trending@dailyhive.com" data-sk="tooltip_parent" aria-haspopup="menu">trending@dailyhive.com</a> for a future post, and a reporter will reach out to you. Confidentiality can be accommodated upon request.
With files from Isabelle Docto
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A new H&R Block Canada survey on how much money Canadians save shows that participants only manage to put away 7 per cent of their earnings.

Cost of living has 85% of Canadians saying they're living 'paycheque to paycheque'

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Struggling due to the cost of living? You're not alone. A survey shows most Canadians feel like they're only just covering their expenses.