TD report says two-thirds of Canadians surveyed plan to cut spending this year

TORONTO – Two-thirds of Canadians surveyed say they plan to cut back on spending this year, a new report by TD Bank says.

The report Tuesday said the result is up from 51 per cent last year.

TD said younger Canadians in particular are looking to reduce their spending with 86 per cent of generation Z and 77 per cent of millennials planning to make cuts. 

The result compared with 65 per cent of generation Xers and 43 per cent of boomers who say they are planning on reducing their spending.

Joe Moghaizel, a vice-president at TD, said intentions are a great first step but turning them into action is what makes the difference financially. 

“One of the most empowering things Canadians can do is create a practical and achievable budget with clear savings goals,” Moghaizel said. 

The survey said top budget sacrifices included eating out less often at 55 per cent and making fewer retail purchases at 53 per cent.

Forty-four per cent say they plan on spending less on entertainment, such as concerts, sporting events and movies.

The report comes amid uneasiness about the economy with the formal review of the free trade agreement between Canada, the United States and Mexico later this year and rising geopolitical concerns.

On Monday, a report by insolvency firm MNP Ltd. suggested Canadians are expecting their household finances will come under pressure this year.

MNP said 71 per cent anticipate higher living costs heading into the new year, while 59 per cent anticipate a worsening economy and 52 per cent see job market weakness coming.

The TD report said Canadians are taking steps to help manage their finances including 30 per cent of those surveyed who said they were couponing and 27 per cent who are thrifting.

The report noted that even with tighter household budgets 63 per cent said their commitment to buying Canadian is stronger this year than last.

The TD report was basked on online survey was conducted by Harris Poll from Oct. 23 to Oct. 27, 2025, while two supplementary questions on Canadian buying habits and attitudes toward shopping local were included in a Leger Opinion panel done between Dec. 18, 2025, and Jan. 5, 2026.

The polling industry’s professional body, the Canadian Research Insights Council, says online surveys cannot be assigned a margin of error because they do not randomly sample the population.

This report by The Canadian Press was first published Jan. 13, 2026.

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