Rising Expenses Prompt Financial Shifts
With inflation and trade tensions driving up everyday expenses, many Canadians are rethinking their spending habits. Recent economic pressures, including a 0.3% contraction in August’s GDP [.ca], have pushed households to weigh cash against credit more carefully.
The Appeal of Cash Transactions
Officials note a growing preference for cash among budget-conscious individuals. This approach helps avoid interest charges and provides a tangible sense of spending limits. Analysis shows that in response to U.S. tariffs on Canadian goods, which began impacting imports this year [.ca], consumers are cutting back on non-essential purchases, often using cash to stay disciplined.
Credit as a Safety Net
Despite the push toward cash, credit cards remain a lifeline for unexpected costs. Sources confirm that with retaliatory tariffs on $30 billion in U.S. goods affecting prices [.ca], many rely on credit for essentials like groceries and fuel. Prime Minister Mark Carney emphasized national resilience in his election victory speech, stating, “We have to look out for ourselves. And above all we have to take care of each other” [cnn.com].
Financial experts recommend tracking expenses through apps or budgets to balance both methods effectively, especially as broader threats like ecosystem disruptions loom [.ca].
