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At Spring Financial, we’re committed to revolutionizing financial access for Canadians, providing smart credit-building, mortgage, and lending solutions. We also know that, sometimes, it’s helpful to know that you’re not alone. That’s why we commissioned a survey to look at the top themes and financial stressors for Canadians to create the 2025 Spring Clean Your Finances report.
This report takes a deep dive into how Canadians are approaching big financial goals including emergency funds, retirement savings, major life expenses, and 2025 travel plans.
Key report findings are outlined below.
Increased Cost of Living in 2025
The increasing cost of living is having a severe impact on Canadians’ daily lives. The survey found that 61% of Canadians say the increasing cost of living in Canada has made them reconsider major life decisions and 41% are not currently able to save money each month after paying for all their necessary expenses.
With costs for major life items like weddings and housing seeing increases that far outpace income growth, it’s no surprise that many Canadians are seeking alternative options that are easier on the wallet. Canadians are also prioritizing home-buying over major events like weddings altogether.
While 79% of Canadians feel confident in their financial knowledge and ability to manage their money, only 63% use a budget to manage their finances and many Canadians (40%) are financially unable to save enough for an emergency or rainy-day fund.
Learn how to save for an emergency or a rainy day fund here.
“While it’s great to see so many Canadians feeling confident about their ability to manage their money, during times of economic hardship or uncertainty, it’s important that people understand how each of their hard earned dollars are being spent,” shared Tyler Thilemann, President and CEO of Spring Financial. “Creating a budget that enables you to see your full financial picture is the best way to make a plan that balances necessary expenses with saving and fun expenses.”
Canadians’ Subscription Expenses
Despite these financial concerns, the vast majority of Canadians seem to have a good handle of their monthly expenses with 90% reporting that they know how much they spend on subscriptions each month.
If you’re unsure how much you’re spending on your subscriptions, learn how to complete a subscription audit here.
Can Canadians Afford to go on Vacation in 2025?
Summer is just around the corner but with ongoing tariffs impacting prices, uncertainty around cross border travel causing concern, and an economic downturn looming, over half of Canadians (61%) are planning to cut back on vacations or travel this summer.
A tight economy doesn’t deter everyone though, 20% of Canadians shared that they have taken on debt specifically to fund a vacation before. This number is even higher for parents with children at home (27%).
“While a tight economy is certainly cause to pause and reassess your financial situation, it’s also important to balance these concerns with what matters to you,” shared Theilmann. “For many parents, for example, there is such a short window to take your kids on trips that they will remember forever.
Sometimes, those memories are worth taking on some level of debt as long as you have a solid plan of how, and when, you’ll be able to pay that debt back.”
Local Travel Increasing?
The rising demand for local travelers to stay within Canada this year saw some hospitality companies offering local discounts over Spring Break which could be promising leading into summer travel season.
Saving for Retirement
Looking beyond summer travel toward long-term financial planning, only around half of Canadians (54%) believe they will be financially secure in retirement. Millennials (50%) and Gen X (52%) are the most likely to feel financially unprepared for retirement relative to Baby Boomers at only 32% and Gen Z at 47%.
“It’s promising to see that Baby Boomers, which is the age group closest to retirement, feel the most prepared,” shared Thielmann. “For anyone that does feel concerned about their financial future, the earlier you can build a budget and financial plan for yourself, the more likely you are to overcome those concerns and feel more confident as you near retirement age.”
Parenting Costs
The survey found that parents with kids living at home are feeling the impact more so than their child-free counterparts. This isn’t surprising given the additional costs that come with having little ones in the house.
For example, parents with kids at home are less likely to have a budget (60% vs. 64%), be able to put money away each month (53% vs. 61%), have an emergency fund already set aside for unforeseen expenses (64% vs. 72%), or even be able to save emergency fund money every month (51% vs. 63%).
Childcare Costs Dropping
While saving can be more difficult when there are children in the home - with childcare, extracurricular activities, and unforeseen expenses being the norm - childcare costs have been dropping in Canada. If you’re a parent trying to make financial plans, be sure to take advantage of all resources available to you like the Canada Child Benefit and these tax tips.
Generations at a Glance
Generationally, Baby Boomers hold the most confidence and are best prepared for financial needs including emergency funds and retirement. Interestingly, while Gen Z is the youngest generation included in the study, Gen Z respondents are more likely to have an emergency fund saved and are less likely to reduce their summer travel compared to their Millennial counterparts.
A more detailed breakdown of personal finance topics by age demographic can be found in the chart below.
Generational Breakdown
Spring Cleaning Your Finances
Regardless of your current financial situation, the renewal of spring is a great time to take a closer look at your finances. Learn how to spring clean your finances this year using the tips below.
- Assess Your Monthly Payments
While your monthly payments like rent, insurance, and car payments can’t be adjusted, taking time once a year to review your ongoing subscriptions and miscellaneous payments is a great way to refine your monthly budget.
Consider if any of your subscriptions be downgraded to a lower tier or cancelled altogether. Are there any payments going out of your account every month that you’re unsure of? If so, now is the time to track those down.
- Explore High Interest Savings Accounts
If you do have some money saved away, don’t let it sit stagnant in a savings account. Look for High Interest Savings Accounts, Guaranteed Investment Certificates (GICs), and even Tax Free Savings Accounts (TFSAs) to make your money go further.
- Audit Your Bank Account
Does your current account come with monthly fees? Can these fees be waived if you have a base amount in your account at all times? Or perhaps you’re being charged for e-transfers and you know you e-transfer money frequently.
Auditing your current fees and comparing those to your saving and spending habits can be a great way to uncover unnecessary expenses. Be sure to shop around for bank accounts that suit your personal needs and spending behaviours.
- Make a Budget
This is an oldie but a goodie. Understanding how much money you have coming in each month and how much you’re spending each month is the foundation of financial confidence. There are many tools available to help create a personalized budget.
Anything from Google Sheet templates that require manual inputting to personal finances apps like Bloom that combine all of your accounts into one easy-to-view dashboard and leverage AI to provide customized recommendations can help bring your full financial picture into focus.
- Create an Emergency Fund
An emergency fund offers both peace of mind and financial flexibility should an emergency arise. Unforeseen costs can add real financial strain, whether it’s an unexpected trip to the vet, an emergency stop at the mechanic, or even unexpected travel, having money available when you need it most is crucial.
The general guidelines when saving an emergency fund is to save 3-6 months of your living expenses. It’s okay if it takes time to save this much away. Try to build a savings plan that works for you with this goal in mind. Even $10 per month adds up over time.
- Budget Your Vacation Plans
Travelling can be quite a hefty expense but if vacations are a priority for you then it’s important to build a budget that takes this into account. Plus, sometimes, having a tangible goal makes it easier to save money each month because the finish line is in sight.
When building your vacation fund, try to get clear on how much you need to save for your trip and identify areas in your life you’re willing to cut back to make your vacation happen. Putting all the numbers on paper helps you see the full picture so you can work back to set your monthly goals.
- Set Clear Retirement Goals
Not sure how much to save for retirement? A good rule of thumb is the 70-80% Replacement Ratio which means saving around 70-80% of your annual salary as an annual retirement income goal.
For a quick snapshot of your retirement savings needs using a Retirement Savings Calculator. To take a more in depth look at your retirement needs, and to factor in government support like the Old Age Pension (OAP) and Canadian Pension Plan (CPP), try the Canadian Retirement Income Calculator.
Some factors to consider when planning your retirement fund include how old you plan to be when you retire, your desired retirement lifestyle, any property you own and if you plan to downsize, and your general expected monthly expenses.
Regardless of your financial situation today, it’s always a good idea to audit your finances every year. Conducting a spring cleaning of your finances allows you to assess if there are any changes you can make to improve your financial future. If you find yourself in need of some financial support, we offer a variety of financial products that can help.
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These findings are from a survey conducted by Spring Financial from March 13th to March 17th, 2025, among a representative sample of 1,500 online Canadians who are members of the Angus Reid Forum. The survey was conducted in English and French. For comparison purposes only, a probability sample of this size would carry a margin of error of +/-2.53 percentage points 19 times out of 20.
