So many Canadians say they couldn't cover a sudden expense of $500
The cost of living across the country is taking its toll on people’s wallets, and a new survey shows one in four Canadians wouldn’t be able to pay off a sudden expense of $500.
According to Statistics Canada, of the Canadians that were asked whether their household had the resources to cover an unexpected expense of $500, 26% said that they would be unable to do so.
The number of people that said they would struggle with an unexpected bill of $500 varied by where they were in the country, with one-third (33%) of respondents in the Atlantic Region replying that they could not, followed by 28% in the Prairie Region.
Respondents in BC were best equipped to handle the expense, with fewer than one in five respondents (19%) indicating they could not cover it.
Not all Canadians are being affected equally, with young adults being among those most concerned over finances. Almost half (46%) of people aged 35 to 44 years found it difficult to meet their financial needs in the previous 12 months, the highest proportion of any other age group.
Those aged 45 to 54 years (41%) had the next highest proportion, and people aged 65 years and older (25%) were the least likely to report difficulty, according to Statistics Canada.
When it came to the concern around the ability to afford housing or rent, 58% of people aged 15 to 24 years reported being very concerned, followed by 56% of those aged 25 to 34 years. People aged 65 years and older reported the least concern at just 27%.
Young Canadians are trying to find the bright side of the cost of living situation — those aged 25 to 34 years reported the highest level of optimism regarding an improvement in their financial situation in one year, with 37% maintaining a belief that it will improve.
The results come from the most recent cycle of the Canadian Social Survey on Quality of Life and Cost of Living, collected from October 21 to December 4, 2022, and posted on the Statistics Canada website.