Rising cost of living forces Manitoba and Saskatchewan residents to make tough sacrifices: More than a quarter are eating less to save, sharing expenses from housing to carpooling, childcare and groceries
Decline in interest rates has far fewer concerned about debt repayment (-24 pts), financial outlook improves.
WINNIPEG, MB – October 16, 2024 – Under the burden of high living costs, Manitoba and Saskatchewan residents are making difficult sacrifices and finding ways to share expenses to make ends meet. According to the latest MNP Consumer Debt Index, conducted quarterly by Ipsos, a quarter (26%) of Manitoba and Saskatchewan residents report turning to bill-splitting strategies such as carpooling, buying in bulk, sharing subscriptions and childcare, and living with others. One in 10 (10%) say they’re saving money by moving in with friends, partners, or family members, or seeking out roommates or co-living spaces. More than a quarter (27%) of Manitoba and Saskatchewan say they’ve even resorted to eating less to save money.
“We’re seeing a bill-splitting boom as Manitobans respond to high living costs,” says Tanya Reynolds, a Licensed Insolvency Trustee with MNP LTD in Winnipeg. “Sharing expenses and housing highlight both the resourcefulness of residents and the financial strain they are under. What’s particularly concerning is that more than a quarter are cutting back on essentials like food to stay afloat. These actions underscore how climbing costs are driving people to find new ways to stretch their budgets.”
Manitoba and Saskatchewan residents are making other sacrifices to manage costs. More than half (56%) say they’ve tried to save money by grocery shopping more strategically, and nearly half say they are avoiding impulse purchases (48%) or have stopped eating in restaurants or getting take-out (47%).
Impact of interest rates on debt and financial outlook
With Manitoba and Saskatchewan residents expecting interest rates to continue falling over the next few years, perceptions of their ability to absorb interest rate increases have improved. Nearly three in 10 (27%, +12 pts) say they’re much better equipped to manage an interest rate increase of one percentage point than they used to be — more than any other province and a significant 12-point increase since last quarter. More Manitoba and Saskatchewan residents are looking positively to the future, with nearly three in 10 (27%, +5 pts) expecting their debt situation to improve when looking ahead one year from now, and fewer believing it will worsen (8%, -7 pts).
Following three interest rate cuts this year, only about one in three (35%) Manitoba and Saskatchewan residents are concerned about their ability to repay their debts, especially if rates continue to decline further. This marks a massive 24-point decrease since last quarter when they were the most concerned among all provinces. Last quarter, many remained pessimistic despite declining interest rates, feeling the reductions weren’t enough to ease their financial burden. Now significantly fewer (-17 pts) say they would even be in financial trouble if interest rates go up, although nearly half (48%) still say they would be.
“As inflation eases and interest rates fall, many Manitobans are starting to feel more optimistic about their financial future, particularly with expectations of further interest rate cuts,” says Reynolds. “While many are feeling more confident in their ability to manage rising rates, there are still concerns, with nearly half still acknowledging they would struggle if rates were to increase.”
Cost-cutting measures and lower interest rates fail to create breathing room in household budgets
Despite growing confidence in their financial outlook, Manitoba and Saskatchewan residents’ budgets have yet to see similar improvements as the other provinces. This quarter, Manitoba and Saskatchewan residents report having $752 (-$23) left over at the end of the month on average — the only provinces to experience a decrease. Nearly half (45%, -2 pts) of Manitoba and Saskatchewan residents still say they are $200 or less away each month from financial insolvency, a higher proportion than the other provinces.
“While the rest of the provinces are seeing a positive shift in their month-end finances, Manitoba and Saskatchewan are reporting a decline, even with cost-cutting efforts and declining interest rates. They are also more likely than the other provinces to be on the verge of insolvency, showing that many continue to feel the heavy burden of their debts,” says Reynolds. “For those who have accumulated significant debt, cost-cutting measures alone may not be enough. A Licensed Insolvency Trustee can provide valuable guidance to individuals to help get their finances back on track.”
Licensed Insolvency Trustees provide unbiased advice on options including debt consolidation, debt management plans, budgeting, Consumer Proposals, and Bankruptcy. They are the only federally regulated debt professionals who are authorized to administer government-regulated insolvency solutions such as Bankruptcies and Consumer Proposals.
“If bill-splitting and other cost-cutting strategies are not yielding results, or are only providing temporary relief, it’s crucial for individuals to seek advice from a Licensed Insolvency Trustee. They can offer advice and solutions to address the underlying debt problems and ensure long-term financial well-being,” says Meger.
MNP’s extensive network of Licensed Insolvency Trustees provides free consultations in over 200 offices nationwide, delivering local, personalized support to help individuals navigate their debt options.
Looking ahead to how Manitoba and Saskatchewan residents plan to cut costs or save money in the year to come, the survey revealed the following:
Manitoba and Saskatchewan residents' top money-saving strategies for the next 12 months
- Bill splitting – 28%
- Finding free or low-cost entertainment – 20%
- Creating a budget / recording all expenses – 15%
- Moving in with family, friends, a partner, or roommates – 14%
- Stopping eating at restaurants or getting takeout – 14%
- Cancelling subscriptions – 12%
- Splitting grocery costs / buying in bulk with roommates, friends, or family – 12%
- Reducing utility consumption – 11%
- Avoiding impulse purchases – 9%
- Going thrift shopping – 9%
- Moving somewhere more affordable – 9%
- Grocery shopping strategically – 8%
- Negotiating bills – 8%
- Cutting vices – 8%
About MNP LTD
MNP LTD, a division of the national accounting firm MNP LLP, is the largest insolvency practice in Canada. For more than 50 years, our experienced team of Licensed Insolvency Trustees and advisors have been working with individuals to help them recover from times of financial distress and regain control of their finances. With more than 240 offices from coast to coast, MNP helps thousands of Canadians each year who are struggling with an overwhelming amount of debt. Visit MNPdebt.ca to contact a Licensed Insolvency Trustee or use our free Do it Yourself (DIY) debt assessment tools. For regular, bite-sized insights about debt and personal finances, subscribe to the MNP 3-Minute Debt Break Podcast.
About the MNP Consumer Debt Index
The MNP Consumer Debt Index measures Canadians’ attitudes toward their consumer debt and gauges their ability to pay their bills, endure unexpected expenses, and absorb interest-rate fluctuations without approaching insolvency. Conducted by Ipsos and updated quarterly, the Index is an industry-leading barometer of financial pressure or relief among Canadians.
Now in its thirtieth wave, the Index has increased to 89 points, up four points since last quarter. Visit MNPdebt.ca/CDI to learn more.
The data was compiled by Ipsos on behalf of MNP LTD between September 6 and September 11, 2024. For this survey, a sample of 2,000 Canadians aged 18 years and over was interviewed. Weighting was then employed to balance demographics to ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ±2.5 percentage points, 19 times out of 20, had all Canadian adults been polled. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to, coverage error and measurement error.
Tanya Reynolds
Senior Vice-President
CIRP, LIT
