Over half of British Columbians say they do not have emergency savings

Metro Vancouver may be weathering the storm of another atmospheric river, but a new insolvency report shows that many people in B.C. do not have a rainy day savings fund.

According to a new report by Canada’s largest insolvency firm, MNP Ltd., British Columbians are feeling more pessimistic than ever about rising financial challenges in 2026.

The latest Consumer Debt Index shows that 62 per cent of B.C. residents believe that unemployment and the job market will worsen, the highest percentage in Canada.

It also shows that 45 per cent of British Columbians say they’re $200 or less away from insolvency, which is a jump of one point from the last report.

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“There is a strong expectation across B.C. that household finances will face added strain in the year ahead, heightening concern about economic security,” said Linda Paul of MNP Ltd. in a release.

“For many British Columbians, the outlook for 2026 is being shaped not only by rising living costs, but also by growing concern about job security, making day-to-day life feel more financially uncertain.”

Worries about precarious finances also extend to British Columbians’ emergency savings. The latest MNP Consumer Debt Index reveals that only 49 per cent of respondents report having six months of emergency savings.

According to the Government of Canada, ideal emergency savings are the equivalent of three to six months of regular expenses, or saving three to six months of income.

“Prolonged financial pressure is driving both decisive action and avoidance behaviours across the province,” added Paul.

“How British Columbians respond to financial stress often depends on whether they feel they have any flexibility to work with. Additional room makes it possible for some to adjust and pursue solutions. Continued economic uncertainty reinforces avoidance behaviours for others.”

There is a bright spot for B.C. residents in the Consumer Debt Index: the average amount that British Columbians report having left over at the end of the month is up to $1,025, a jump of $209 since last quarter.

However, economic uncertainty continues to impact many sectors in the province, including real estate.

The Lower Mainland housing market ended 2025 on a subdued footing, capping its weakest year for home sales in a generation since 2000 as affordability pressures and elevated interest rates continued to suppress buyer demand.

For the full year, 2025 marked a historic low point for market activity. Total home sales fell 12.5 per cent to 35,350 units, the lowest annual total since the start of the millennium.

Stability may be on the way for variable mortgage rate borrowers in Canada.

Ratehub.ca mortgage expert Penelope Graham recently said that variable mortgage rates will be stable this year, barring any economic surprises.

In the final interest rate announcement of 2025, the Bank of Canada (BoC) held the key interest rate at 2.25 per cent.

How hopeless or hopeful do you feel about your financial situation in 2026? Share your experience with us at vancouver@dailyhive.com.

With files from Kenneth Chan and Isabelle Docto