Two-thirds of Canadians plan to significantly reduce their spending in 2026, according to a new TD Bank Group survey.
The survey found 67% of Canadians intend to cut back their spending this year, up sharply from 51% in 2025. Nearly six in 10 respondents said they would reduce their monthly budgets by up to $1,000.
Younger generations appear most affected by economic pressures. The survey revealed 86% of Gen Z and 77% of Millennials plan to slash their budgets, compared with 65% of Gen X and 43% of Baby Boomers.
Canadians identified eating out less often as their top budget sacrifice at 55%, followed by making fewer retail purchases at 53%. Other cutbacks include spending less on entertainment such as concerts, sporting events and movies (44%), shopping around more to save on purchases (41%), and switching from name-brand to store-brand products (39%). Thirty-one per cent (31%) plan to cancel some or all subscriptions.
Beyond traditional belt-tightening, Canadians are adopting creative approaches to manage finances. Thirty per cent plan to use coupons or participate in “no spend” challenges, while 27% intend to shop at thrift stores. One in four respondents said they would take on a side hustle or part-time job to help manage expenses.
Despite financial pressures, 63% of Canadians said their commitment to buying Canadian products is stronger this year than last. When supporting the domestic economy, 38% prioritise Canadian-made products and 27% favour purchasing from local small businesses.
“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.”
Canadians’ top financial priorities for 2026 include saving and investing (47%), managing day-to-day expenses (46%), paying down debt (32%), supporting family or children (29%), and covering housing costs (26%).
However, only 36% of Canadians have a formal financial plan for 2026.
“Intentions are a great first step but turning them into action is what truly makes the difference,” 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.”
The TD survey was conducted by Harris Poll between Oct. 23 and 27, 2025, with a nationally representative sample of 1,516 Canadian adults.
