Some Canadians say they can't afford an unexpected $1,000 expense
Many Canadians are struggling, and they had a lot to say when asked if they could handle an unexpected expense of $1,000.
According to a 2023 survey by Statistics Canada, in the fall of 2022, 26% of Canadians reported that they wouldn’t have the means to pay an unforeseen cost of $500.
“Further, while the vast majority of Canadians were concerned with rising gasoline and food prices, almost half (44%) said they were very concerned with their household’s ability to afford housing or rent,” states the report.
Curious about how people ended up in a situation where “a 1,000-dollar expense can sink you,” one Reddit user asked, “How many of you could eat a 1,000-dollar unexpected expense?”
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Some more financially secure commenters said a $1,000 expense wouldn’t faze them.
“I am a retired boomer. I could handle it easily. I was a librarian and have a pension,” one person wrote. “That said, I am really worried about the young being able to have what I had.”
“Easily. But I’m paranoid and keep massive emergency savings,” stated another.
But not everyone is in a situation where they can save for a rainy day. For some, an unforeseen cost of $1,000 could mean choosing between paying their bills or their rent.
“I can’t. I mean… I could, but I wouldn’t be able to pay my February rent,” wrote one commenter.
Another Redditor stated that they’d just been hit with an unexpected expense.
“I currently have a $1,000 expense that I can’t pay,” they said. “My laptop died, and I work mostly remotely, so it’s essential for my job. I have to buy a new one, and I have no idea where I’m going to get the money from.”
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For others, it would mean cutting back and having an even smaller budget for essentials and starting a chain reaction that would affect their credit score.
“I could ‘eat it,’ but it would mean that the bills would be pushed a month or two, which would drop my credit into nothing, and we’d be on a super tight budget for groceries,” wrote one person. “No hobby expenses, no household purchases, zero take out, no taxis on super stormy or rushed days (I don’t have a car), no coffee, pretty much no going outside the house for the next one or two months.”
One student said they’d have to rely on help from a relative.
“I definitely couldn’t. I am a university student, so I might be able to get help for an unexpected expense from a family member, but it’s not super likely,” they said.
But even those who do have savings said that it would be a struggle.
“I can, but it would wipe out half of my emergency savings,” one person explained. “And it would be hard because I am unfortunately expecting a huge decrease in income in my household in the next month that could last up to one year, so emergency savings are important right now.”
For another Redditor, an unexpected $1,000 expense would simply be devastating.
“If I have an unexpected $1,000 expense, it’s not getting paid,” they wrote. “Unless I choose to be homeless and pay zero of my bills for the month, and also eat even less. I’m disabled and currently unable to work. That’s most of my cheque. I lost my savings when I had to quit my job, $1,000 would destroy me.”
What are your thoughts on this issue? Let us know in the comments.
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