A new nationwide survey shows a sharp deterioration in financial resilience across Canada. Most households say they are dipping into savings more often than before, and a large majority report higher money anxiety compared with 2020.
The survey, conducted by Harris & Partners, a Licensed Insolvency Trustee firm, asked more than 1,200 Canadians about their savings habits and financial stress. The results are stark:
- 78.7% have had to dip into their savings more frequently than before
- 84.5% worry more about money now than they did in 2020
“These are not marginal changes. They point to a real erosion of the financial safety net,” said Joshua Harris, CEO of Harris & Partners. “When nearly four in five people are drawing down savings more often, it means emergency funds are being used for everyday costs. That is not sustainable for households or for the wider economy.”
Savings are being used to cover ordinary life expenses
For many, savings are no longer reserved for emergencies. Respondents said they were setting aside funds to pay for rent, food, utilities, childcare, transport, and unexpected bills. This shift has several knock-on effects. It reduces the cushion that protects families from job loss or illness. It increases the likelihood that a surprise expense will lead to overdue payments. It also makes people more vulnerable to interest rate changes and economic shocks, said the report.
“Canadians tell us they are doing everything they can to stay afloat. They are cutting back, working extra hours, and still needing to dip into savings to make the numbers work,” explained Harris. “Once that buffer is gone, any setback can turn into a crisis very quickly.”
Money worries are rising, and it is taking a toll
More than four in five respondents say they worry more about money today than they did in 2020. Persistent anxiety about bills and balances can impact sleep, relationships, and work performance. It can also lead people to delay important decisions about health, education, and retirement, added the report.
“Financial stress does not stay in a spreadsheet,” said Harris. “It shows up as burnout, loss of focus, and strain at home. We are hearing from people who feel they are always one bill away from trouble. That kind of constant pressure is exhausting.”
Who is most exposed?
While the strain is widespread, certain groups are often the most exposed. Renters who face frequent increases in housing costs. Families with children whose expenses rise as they grow. Single-income households with less capacity to absorb shocks. Workers with variable hours or seasonal income who cannot rely on a steady paycheque. Homeowners with higher payments have seen costs increase more quickly than income. Each of these groups may reach for savings more often simply to cover the basics, according to the report.
Practical steps that can help right now
Harris & Partners recommends a few quick actions for anyone who is drawing down savings more often than before:
- List priority bills first, and contact providers early if you need a payment plan
- Map your month by writing down every regular cost and the typical date it leaves your account
- Ring fence a small emergency buffer in a separate account, so it is not spent accidentally
- Avoid high-interest credit for essentials where possible and get advice before consolidating debt
- Speak to a Licensed Insolvency Trustee early to understand all your options without obligation
“Reaching out for advice is not a sign of failure,” noted Harris. “A short conversation can reveal options that people do not realise they have. The sooner that happens, the more choices are available.”
A call for broader support
Harris & Partners is calling for a clear focus on affordability, fair wage growth, and accessible financial education so Canadians can rebuild savings and reduce reliance on credit.
“People are doing their best. They are budgeting, working harder, and making difficult choices,” said Harris. “We need to make sure that effort is rewarded with stability. Canadians should be able to save for the future rather than spend every month worrying about the next bill.”
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