The country's high cost of living is leading Canadians to make difficult decisions to save money, especially cutting costs on basic necessities like food.

That's according to the latest MNP Consumer Debt Index conducted by Ipsos, which recently surveyed 2,000 Canadians 18 years and older.

The survey found that nearly three in ten Canadians surveyed (28%) resorted to eating less to save money.

Over half (51%) of respondents said they're trying to reduce costs by being more mindful at the grocery store.

Canadians also think twice before going out to eat, as 44% said they've stopped eating in restaurants altogether or said they’re no longer getting take-out.

Food insecurity

Other reports have also emphasized how the high costs of essentials have pushed many Canadians to the edge.

A survey conducted by the Agri-Food Analytics Lab at Dalhousie University earlier this year found that over half of respondents (58%) said they were "more inclined" to eat food past its best-before dates because of high grocery prices.

Recently, Food Banks Canada said its locations across the country see nearly two million visits every month, and over 600,000 of those are by children who rely on food bank services to meet basic needs.

What's more troubling is that food insecurity in Canada could result in concerning and life-threatening health conditions.

A recent report from the Canadian Medical Association Journal (CMAJ) detailed the case of a 65-year-old woman who was diagnosed with scurvy at a Toronto hospital last year.

Authors of the report say this case emphasizes the possible comeback of scurvy and are advising doctors to have "a higher index of suspicion" in patients with low socioeconomic status who are experiencing food insecurity.

Splitting and sharing expenses to save money

MNP's findings also highlight that Canadians favour splitting the bill or sharing housing to save money.

Survey results found that nearly one-third (30%) of Canadians adopt bill-splitting strategies, such as carpooling, subscription sharing, and sharing childcare duties.

Another popular strategy was cohabitating with others, as 13% of respondents said they were living with friends, partners, and family members and looking for additional roommates to save on housing costs.

Grant Bazian, president of MNP LTD, noted that these types of strategies "showcase not only resourcefulness but also the financial pressure many are facing."

"These measures reflect the harsh reality of soaring living costs, compelling Canadians to find new ways to save," he stated.

MNP's data found the following when it came to how Canadians are looking to cut costs in the coming year:

Canadians' Top Money-Saving Strategies For the Next 12 Months 

1. Bill Splitting – 27%
2. Co-habitation – 14%
3. Creating a Budget / Recording All Expenses – 14%
4. Cancelling Subscriptions – 13%
5. Stopping Eating in Restaurants or Getting Takeout – 13%
6. Avoiding Impulse Purchases – 13%
7. Reducing Utility Consumption – 13%
8. Going Thrift Shopping – 12%
9. Finding Free or Low-Cost Entertainment – 12%
10. Grocery Shopping Strategically – 12%
11. Negotiating Bills – 11%
12. Cutting Vices – 10%
13. Moving Somewhere More Affordable – 10%
14. Splitting Grocery Costs / Buying in Bulk with Roommates, Friends, or Family – 9%

Will interest rate cuts make a difference?

As the country's interest rates are expected to continue to drop, MNP highlighted that Canadians have some hope for their financial futures and debt repayments.

A recent report from the Canadian Association of Insolvency and Restructuring Professionals (CAIRP) noted that the rate of insolvencies in the country has reached a scary new high when it comes to consumer debt.

That report found 35,082 Canadians filed for consumer insolvency in the second quarter of 2024.

However, according to MNP, three in ten (31%) said they feel their debt situation will improve a year from now, while 12% feel it will worsen.

Even with three interest rate cuts this year, 48% of respondents said if the rates decline further, they’re still concerned about the ability to repay their debts.

MNP added that nearly half (46%) of Canadians living with others and 44% who are bill-splitting are at risk of insolvency.

"While cost-saving behaviours and lower interest rates have positively impacted Canadians’ perceived financial well-being, a significant minority — close to four in 10 — still report being on the brink of insolvency, indicating they are struggling to make ends meet," noted Bazian, adding that many across the country continue to "feel the burden of heavy debt."