It may come as no surprise to British Columbians but the rising cost of living in the province is forcing some to make tough sacrifices.
According to the latest MNP Consumer Debt Index, conducted quarterly by Ipsos, “British Columbians are more likely than any other province (38%) to report that they have turned to bill-splitting strategies—such as carpooling, buying in bulk, sharing subscriptions and childcare, and cohabiting with others.”
The report found that one in five British Columbians, 20 per cent, more than in any other province, said they were saving money by cohabiting with friends or family members or living with roommates.
British Columbians, about 35 per cent, said they eat less to save money.
“We’re seeing a bill-splitting boom in B.C. and across the country as people adapt to the high cost of living,” Linda Paul, a licensed insolvency trustee with MNP LTD in the Lower Mainland, said in a statement.
“These cost-saving approaches, like sharing expenses and co-living, highlight British Columbians’ adaptability while also indicating the intense financial strain they are under. What’s especially worrying is that British Columbians are among the most likely to report cutting back on food just to get by.”
More than half of British Columbians polled said they have tried to save money by grocery shopping more strategically and avoiding impulse purchases.
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Nearly two in five said they have stopped eating in restaurants or getting takeout.
However, British Columbians are also reporting that with the declining interest rate, they have been able to save some more money in the bank — $277 a month on average.
Nearly two in five (37 per cent) of British Columbians stated they were $200 or less away each month from financial insolvency – dropping a significant 10 points since last quarter.
“Cost-cutting measures and declining interest rates have certainly eased some of the financial pressure, providing some British Columbians with more wiggle room,” Paul added. “However, with close to two in five still on the edge of insolvency, it’s clear that others are still grappling with persistent financial challenges.”
Despite the declining interest rate cuts, almost 50 per cent of British Columbians polled said they are concerned about their ability to repay their debt.
More than half said they will be in financial trouble if interest rates go up.
“Inflation is easing and interest rates are declining, but many British Columbians are still burdened by the debts they have taken on,” Paul explained.
The data was compiled by Ipsos on behalf of MNP LTD between Sept. 6 to Sept. 11, 2024. For this survey, a sample of 2,000 Canadians aged 18 years and over were 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.
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