Nompumelelo Moyo (LJI)
As we approach the festive season, typically a period marked by gatherings and celebration, Canadians are grappling with a stark reality where the escalating cost of living impinges not only on their finances but also on their social and mental well-being. A recent survey revealed a startling trend: approximately 36% of respondents have curtailed social engagements, opting instead for isolation as a means to economize, thus underscoring the profound societal impacts of inflation.
The rising costs of basic commodities and services has compelled a majority of Canadians to recalibrate their day-to-day living. Statistique Canada found that nearly three in four Canadians found it difficult to meet their day-to-day expenses such as food, transportation, and the like. This economic strain, occurring amidst a time traditionally associated with joy and togetherness, casts a shadow over the season’s festivities, reflecting a broader, more distressing shift in the Canadian socio-economic landscape.
The war in Ukraine, climate change and COVID-19 have contributed globally to the largest cost of living crisis of the 21st century, according to the United Nations report 2022. This has seen the inflation in Canada hit a three-decade high in April 2022.
“I don’t know how I would survive without the foodbanks”, says Sarah a single mother of two. Her situation resonates with a lot people as they adapt to this new reality by adjusting their spending. However, the foodbanks are also feeling the pressure as they have reported a growing number of people needing assistance and some have asked the government to double their funding.
On the other hand, most middle-class families find their backs pressed to the wall and have resorted to seeking out sales, promotions, purchasing cheaper alternatives on brands and items.
Depending on the individual, it’s each to his own kind of scenario. As the future continues to look bleak, younger Canadians are concerned about their ability to afford housing or rentals as shelter prices including water, fuel and electricity rose by 7.4% over the year in April 2022. A survey conducted by Angus Reid Institute also found that 36% of people were in debt and struggling to make repayments.
For others such as Thomas a businessman in Montreal, he says emigrating to other cheaper countries could just be the solution because he hopes by so doing, he can improve his quality of life and he can generate disposable income to spend on recreational activities.
The sad part is that as costs keep rising, wages stay the same. Unfortunately, the strain brought about by this situation has taken a toll on mental health according to an Ipsos poll, as more people are staying home to save money and not doing the things, they would normally would do thus feeling isolated as a result.
Affordability anxiety, debt, financial literacy exacerbates the financial stresses, Canadians are already experiencing. Paul says
”There is a lot of shame attached with having financial difficulty, so people are reluctant to open up about what they are experiencing at home.”
