Two in three Canadians plan major spending cuts in 2026: TD survey

Many Canadians are heading into 2026 with a plan for their finances: spend less and be more deliberate about where money goes.

According to a new survey from TD Bank Group, 67% of Canadians plan to cut back their spending this year, up sharply from 51% in 2025. Nearly six in 10 respondents said they expect to reduce their monthly budgets by as much as $1,000, reflecting ongoing pressure from high living costs and lingering economic uncertainty.

The pullback is especially pronounced among younger Canadians. The survey found 86% of Gen Z and 77% of Millennials plan to cut spending in 2026, compared with 65% of Gen X and 43% of Boomers. This gap underscores how affordability pressures continue to fall hardest on younger households.

Where Canadians are cutting back

When it comes to trimming budgets, discretionary spending is first on the chopping block. The most common changes Canadians say they plan to make include:

• Eating out less often (55%)
• Making fewer retail purchases (53%)
• Spending less on entertainment such as concerts, sports, and movies (44%)
• Shopping around more to save on purchases (41%)
• Switching from name-brand to store-brand products (39%)
• Cancelling some or all subscriptions (31%)

Beyond cutting expenses, many Canadians are also changing how they manage money day to day. About 30% say they plan to use coupons or try “no-spend” challenges, while 27% expect to thrift more often. One in four respondents said they are considering taking on a side hustle or part-time work to help offset rising costs.

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Financial goals without a clear plan

Despite widespread belt-tightening, Canadians’ financial priorities remain largely forward-looking. The survey found top goals for 2026 include saving and investing (47%), managing day-to-day expenses (46%), paying down debt (32%), supporting family or children (29%) and covering housing costs (26%).

However, intention does not always translate into structure. Only 36% of Canadians said they have a formal financial plan for 2026, highlighting a gap between financial goals and concrete planning.

“Intentions are a great first step, but turning them into action is what truly makes the difference,” said Joe Moghaizel, vice president, Everyday Advice Journey at TD, in a statement.

"Simple habits, like pausing to understand your needs versus your wants, can strengthen your financial resilience and help you feel prepared to reach your goals in the year ahead."

Buying Canadian remains a priority

While many look to tighten their 2026 budgets, Canadians also say they are becoming more intentional about where they spend. Nearly two-thirds of respondents (63%) said their desire to buy Canadian is stronger than last year, suggesting cost-conscious consumers are still weighing values alongside price.

"While Canadians are being more intentional with their spending and savings, their desire to support Canadian-owned businesses is evolving from a trend to a habit," said Julia Kelly, vice president, Small Business Banking at TD, in a statement.

When asked how they prioritize supporting the domestic economy, Canadians ranked buying Canadian-made products highest (38%), followed by buying from local small businesses (27%). Fewer respondents said buying from a Canadian brand or a company that employs Canadians was their top priority.

The findings suggest that for many households, spending less does not necessarily mean disengaging from the economy — but rather spending more selectively.