Two-thirds of Canadians plan to rein in their spending in 2026, according to a new TD Bank Group survey that suggests households are preparing for tighter budgets while maintaining a strong preference for buying Canadian products and services.
The survey found 67 per cent of Canadians expect to cut back on spending this year, up sharply from 51 per cent in 2025. Nearly six in 10 respondents said they plan to reduce their monthly budgets by as much as $1,000, signalling a significant shift in household financial behaviour as the new year begins.
Widespread spending pullback
TD said younger Canadians are more likely to be planning deep spending cuts. The survey found 86 per cent of Generation Z respondents and 77 per cent of millennials intend to reduce their budgets, compared with 65 per cent of Generation X and 43 per cent of baby boomers.
When asked where they plan to cut back, respondents identified several common areas of sacrifice:
- Eating out less often (55 per cent)
- Making fewer retail purchases (53 per cent)
- Spending less on entertainment such as concerts, sporting events and movies (44 per cent)
- Shopping around more to save on purchases (41 per cent)
- Switching from name-brand to store-brand products (39 per cent)
- Cancelling some or all subscriptions (31 per cent)
Beyond reducing discretionary spending, TD said many Canadians are adopting alternative strategies to manage their finances. Thirty per cent reported using coupons, while the same proportion said they are participating in so-called “no spend” challenges. Thrifting was cited by 27 per cent of respondents, and one in four said they are taking on a side hustle or part-time job to help cover expenses.
Financial goals without formal plans
Despite widespread efforts to cut costs, the survey suggests many Canadians lack a structured approach to achieving their financial goals in 2026.
TD found respondents’ top priorities for the year include saving and investing, cited by 47 per cent, managing day-to-day expenses at 46 per cent, paying down debt at 32 per cent, supporting family or children at 29 per cent, and covering housing costs at 26 per cent.
However, only 36 per cent of Canadians surveyed said they have a formal financial plan in place for 2026, pointing to what TD described as a gap between financial intentions and execution.
“Intentions are a great first step but turning them into action is what truly makes the difference. One of the most empowering things Canadians can do is create a practical and achievable budget with clear savings goals. Something that not only guides you but also builds your confidence along the way,” said Joe Moghaizel, vice-president of everyday advice journey at TD.
“Simple habits, like pausing to understand your needs versus your wants, can strengthen your financial resilience and help you feel prepared to reach your goals in the year ahead,” he added.
Commitment to buying Canadian remains strong
The survey also suggests that tighter household budgets are not dampening interest in supporting the domestic economy.
Nearly two-thirds of respondents, or 63 per cent, said their desire to buy Canadian is stronger in 2026 than it was a year earlier. When asked how they prioritize supporting Canada’s economy, 38 per cent said buying Canadian-made products is most important, followed by buying from local small businesses at 27 per cent.
Those priorities ranked ahead of buying from a Canadian brand, cited by 18 per cent, and buying from a brand that employs Canadians, at 16 per cent.
“While Canadians are being more intentional with their spending and savings, their desire to support Canadian-owned businesses is evolving from a trend to a habit,” said Julia Kelly, vice-president of small business banking at TD.
“This comes at a pivotal time for business owners who continue to face rising costs and a changing business environment,” she said.
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